The Malaysian state's response to migration.

Abstract

This paper aims to provide a profile of migration trends in Malaysia since 1970 and to analyze public policy on migration in the context of economic growth and the labor market. The discussion centers on the impact of the Asian financial crisis. There is long history of immigration to Malaysia. The development strategy of the 1970s and 1980s was to create more jobs and restructure employment to meet equity goals. Labor shortages on plantations and construction booms led to a more organized, sustained effort to import labor. Recession in the mid-1980s led to unemployment, but many Malaysians were unwilling to work on plantations, in construction, or in low paying jobs. Economic growth during 1987-96 was very high, and labor shortages spread to service and manufacturing sectors. Migration policy has shifted over the decades. Both the market and the government's promotion of export-based industrialization require access to low cost migrant labor. Public and official recognition of the large number of migrants was not made until 1995. The financial crisis in 1998 led to enforcement of a new migration policy on illegal migrants and greater outflow of migrants. The economic crisis has increased job and income inequities in the region; this encourages continued migration. It is argued that it would be best for Malaysia to maximize short-term gains while minimizing long-term economic, social, and political costs.