The Institute for Democracy and Economic Affairs (IDEAS) has urged the Malaysian government to establish a comprehensive legal framework that facilitates refugee employment while safeguarding the local workforce. Its key recommendations include developing a structured work permit system aligned with Malaysia’s labour market needs, ensuring fair wages and working conditions to prevent exploitation and implementing skills assessments to match refugee talent with industry demands. IDEAS also called for stronger multi-stakeholder engagement, including private sector participation and civil society collaboration, to support refugee integration. Additionally, it also suggested expanding access to education and vocational training to enhance long-term economic contributions and enhancing financial inclusion measures to support refugee participation in the economy.
These recommendations come as the government considers providing additional social assistance to refugees registered with both the government and the United Nations High Commissioner for Refugees (UNHCR), including granting them legal employment rights in Malaysia. “By implementing these measures, Malaysia can unlock the full economic potential of refugee communities, fostering sustainable national development and a more inclusive workforce,” IDEAS said in a recent statement. The institute said allowing refugees to work legally could enhance economic inclusion, reduce reliance on informal labour, and promote a more structured and rights-based approach to refugee management. It added that integrating refugees into the formal labour market could help address labour shortages while ensuring better protections and working conditions.
IDEAS acting CEO Aira Azhari said the policy’s potential to create economic opportunities while upholding Malaysia’s humanitarian commitments. “Granting formal employment rights to refugees is a significant step in empowering them while contributing to Malaysia’s economy. A well-regulated system can mitigate concerns about job displacement among citizens and help reduce exploitative practices that disproportionately affect refugees,” she said in the statement.
Malaysia currently hosts 192,240 refugees, many of whom exist in a legal vacuum that worsens their vulnerability. “Formal employment is a welcome step toward improving their situation,” she added. On Feb 13, Minister in the Prime Minister’s Department (Federal Territories) Dr Zaliha Mustafa said the specifics of this proposal are still being refined, considering labour requirements and conditions across various sectors. Approval would only be finalised once all refugees and asylum seekers in Malaysia are officially registered with the government.
The Malaysian Reserve
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