A freeze on new foreign worker quotas exacerbates labour shortages, especially in agriculture and plantations, raising concerns for key industries.

Malaysia’s decision to freeze new foreign worker quotas, capping the total at 2.5 million by December, has ignited a crisis in the plantation sector. With only 90,000 slots left before reaching the cap, industries like agriculture, particularly palm oil and rubber production, face significant labour shortages.

The Home Ministry’s decision, which follows the Ministry of Economy’s target for a workforce of 17 million, aims to balance the national workforce. However, key sectors, such as plantations, are struggling to meet their labour needs. The freeze on foreign worker applications, which has been in place since September, will continue until quarterly reviews assess sectoral demand.

The government has committed to collaborating with relevant ministries to address these gaps, but the immediate focus is on verifying the authenticity of foreign worker demands before processing new applications. With only limited slots remaining, the country’s plantations are likely to face mounting challenges in maintaining production levels, impacting industries that rely heavily on foreign labour.