“Currently, Malaysia has a demand for more than 100,000 foreign workers per year. We are in urgent need of workers who are suitable for the jobs and possess good discipline.”
This statement was made by Dato’ Sh Yahya Bin Sh. Mohamed, Director-General of the Labour Department under Malaysia’s Ministry of Human Resources, at the seminar titled “Enhancing Cooperation in Sending Vietnamese Workers to Malaysia”, jointly organized by Vietnam’s Department of Overseas Labour and Malaysia’s Labour Department on April 15 in Hanoi.
Wages Determined by Market Supply and Demand
According to Nguyen Ngoc Quynh, Director-General of Vietnam’s Department of Overseas Labour, more than 190,000 Vietnamese workers have been sent to work in Malaysia since 2002. They have been employed across 12 of Malaysia’s 13 states, mainly in manufacturing, construction, agriculture, services, and domestic work. Currently, 138 licensed labor export enterprises are authorized to recruit and send Vietnamese workers to Malaysia.
Regarding workers’ earnings, Nguyen Tien San, Labor Attaché and Head of the Vietnam Labor Management Board in Malaysia, stated that Vietnamese workers receive a basic wage of approximately RM 21 per day. Surveys conducted among employers and workers show that the average monthly income ranges from RM 900 to RM 1,100 (approximately VND 6–8 million). Experienced workers, particularly those with four or more years of service, can earn between RM 1,200 and RM 1,500 per month, while some workers earn as much as RM 2,000–3,000 per month.
Commenting further on wages, Dato’ Sh Yahya Bin Sh. Mohamed explained:
“Malaysia does not impose a minimum wage. Salaries are determined by market supply and demand, so it is not possible to simply propose higher wages for migrant workers. Our goal is to ensure that migrant workers receive wages comparable to local workers. In a market-driven wage system, workers also benefit because when labor demand is high and supply is insufficient, employers are compelled to offer higher salaries.”
Challenges from the Domestic Side
Although Malaysia’s demand for foreign labor remains high, the quality of labor—particularly issues related to discipline and work ethics—continues to be a significant obstacle for Vietnamese workers.
According to Nguyen Tien San, Malaysian employers have raised concerns that some Vietnamese workers:
- Make unreasonable demands on employers;
- Leave their jobs when dissatisfied;
- Lack orderly and economical living habits;
- Engage in excessive drinking and other inappropriate behaviors.
These shortcomings have negatively affected Vietnam’s competitiveness compared with the 12 other countries supplying workers to Malaysia.
In addition, labor management by Vietnamese enterprises has been inadequate, leading to a number of complicated cases. Of the 138 enterprises licensed to operate in Malaysia, more than 40 companies have over 150 workers employed there, yet only three enterprises maintain representatives in Malaysia. Reporting requirements have also not been properly followed; in 2010, only 23 out of 74 enterprises submitted labor reports to the Vietnam Labor Management Board in Malaysia. As a result, resolving worker-related issues becomes more difficult and can adversely affect workers’ rights and interests.
Difficulties in Recruitment and Financing
Representatives from Chau Hung Company highlighted challenges in labor recruitment, noting that many local authorities do not provide sufficient support for enterprises seeking labor sources.
For example:
- In Thanh Hoa, Nghe An, and Bac Giang provinces, recruitment permits are valid for only six months.
- Some provinces restrict recruitment activities to specific districts, limiting enterprises’ ability to access potential workers.
Several enterprises also urged banks to make it easier for workers to obtain loans. Although the cost of working in Malaysia is relatively low—slightly over VND 20 million—many workers still face difficulties securing financing.
To increase labor supply, some enterprises have adopted a policy allowing workers to depart first and pay fees later through salary deductions. However, this approach exposes companies to significant risks, as some workers leave their contracted employers and seek unauthorized employment after arriving in Malaysia.
A Valuable Opportunity for Vietnamese Workers
Malaysia’s strong demand for foreign workers presents a significant opportunity for Vietnamese laborers, especially considering the more than 10,300 Vietnamese workers who had recently returned from Libya and the many others seeking overseas employment opportunities.
However, unless the domestic challenges related to worker discipline, labor management, recruitment, and financing are effectively addressed, Vietnamese workers may not be able to fully benefit from these opportunities.
Source: Lao Dong Newspaper (www.laodong.com.vn)
Author: Ngoc Bao