Legal issues, local resistance in way of proposal to employ refugees, says economist

PETALING JAYA: The lack of legal access to formal employment, coupled with potential resistance from recruitment companies, may hamper proposals to hire refugees instead of bringing in more foreign workers, says an economist.

Yeah Kim Leng of Sunway University said Malaysia’s non-recognition of the 1951 UN Refugee Convention leaves refugees without formal legal recognition, rendering them undocumented migrants under domestic laws.

United Nations High Commissioner for Refugees (UNHCR) cards, while offering limited de facto protection, do not confer their holders the statutory right to work, creating a legal grey area that exposes both the refugees and employers to exploitation, raids, and prosecution.

“Lengthy UNHCR registration processes, coupled with inadequate access to healthcare and education, further impede the refugees’ readiness for formal employment.

“Tighter monitoring and enforcement would also require administrative capacities that are limited currently.

“Operationally, the lack of a clear policy framework, compounded by the failure of a 2017 pilot project due to poor job matching, undermines confidence in (policy) implementation,” he told FMT.

Yeah was referring to a 2017 government pilot project that sought to allow UNHCR cardholders to work in the plantation and manufacturing sectors. Former human resources minister M Kulasegaran had said this was because the government did not help refugees assimilate with local residents

Yeah and labour rights activist Adrian Pereira of North-South Initiative said allowing refugees to work in Malaysia may not sit well with recruiters who profit from supplying foreign workers to the country.

“Employers and the Malaysian Employers Federation, in general, have been supportive of the idea of providing legal pathways to work for refugees. And that is a good sign,” Pereira told FMT.

Entrepreneur and cooperatives development minister Steven Sim recently suggested that the government consider allowing eligible refugees to join the labour market under specific conditions, particularly in industries that continue to face manpower shortages.

Sim said many “3D” – dirty, dangerous, and difficult – sectors still rely heavily on foreign workers, and Putrajaya could consider allowing refugees who have been staying in Malaysia for a long time to legally work in these sectors.

More cost efficient to recruit refugees

Former Klang MP and co-chair of Asean Parliamentarians for Human Rights, Charles Santiago, said recruiting refugees would be more cost-efficient, as employers would not have to spend tens of thousands of ringgit to bring in workers from overseas.

“They would only have to pay for capacity building, training, and housing for the refugees,” Santiago told FMT.

Pereira agreed, but stressed that the right to work for refugees should come with protection from forced labour, social protections, legitimate working hours, and adherence to the minimum wage standard.

He also pointed out that some refugees come from professional backgrounds, and certifying bodies and the regulators for specific trades could open up pathways for their employment.

“Let us ensure that they also have pathways not just to remain low-wage workers, but compensated in employment that suits their qualifications,” he said.

A middle path

Yeah said Sim’s proposal to grant employment rights to the refugee community offered a “middle path” that would address the refugee situation without displacing local job seekers, since the refugees would effectively substitute imported foreign workers rather than compete for roles that local people typically fill.

However, he pointed out that such a policy could inadvertently attract more displaced individuals from other countries, either to seek refuge in Malaysia or to use it as a transit point to more developed nations.

“To mitigate this risk, tighter monitoring and robust enforcement of refugee regulations will be essential,” he said.