Written by: Pradipta Natha Setya Putra (11 SMA)
Since gaining independence in 1957, Malaysia has achieved significant economic and infrastructural growth, becoming one of Southeast Asia’s most developed nations. With a Human Development Index (HDI) score of 0.804 (2024), Malaysia ranks third in the region, following Singapore and Brunei Darussalam.
Malaysia’s business climate is attractive to foreign investors due to its strategic location in Southeast Asia, providing access to key global markets. The country boasts a well-developed infrastructure, including modern ports, airports, and highways. A skilled and multilingual workforce, coupled with business-friendly policies such as tax incentives and free trade agreements, enhances its investment appeal. Additionally, Malaysia’s stable political environment, strong legal framework, and pro-business government policies ensure a favorable environment for foreign direct investment. Key sectors like manufacturing, electronics, and services have flourished due to these advantages.
These developments have attracted a large foreign workforce, particularly from Indonesia, which accounted for 40% of Malaysia’s foreign workers in 2018, according to the Ministry of Human Resources (MOHR). Why do Indonesians flock to Malaysia for work, and what challenges do they face?
- Higher HDI and Better Opportunities: Malaysia’s HDI score significantly surpasses Indonesia’s (0.705 in 2024 according to country economy). The better living standards and job opportunities in Malaysia make it an appealing choice for Indonesians seeking improved conditions.
- Geographic Proximity: Indonesia shares both maritime and land borders with Malaysia, particularly on the island of Borneo. This proximity makes it easier and more affordable for Indonesians to migrate for work.
- Cultural and Linguistic Similarities: The shared cultural heritage and similar languages (Bahasa Indonesia and Malay) eliminate significant barriers for Indonesian workers. The two languages are mutually intelligible, reducing communication challenges.
The Indonesians who work in Malaysia are divided in more than just one sectors ranging from unskilled to skilled labor. Indonesian workers in Malaysia are employed across various sectors, including both unskilled and skilled roles. Semi-skilled laborer’s typically work in agriculture, construction, services, and manufacturing, while skilled professionals are increasingly found in education, healthcare, and technical industries. The most challenging issues is the unskilled workers where most of them work as domestic workers. Some are illiterate and have minimum knowledge on their legal rights working in Malaysia.
Malaysia is also a land of opportunity not only for expatriate working in mining and oil and gas sector, but also for the academics. Indonesian educators in Malaysia are highly regarded, with many holding prestigious positions in top universities across the country, contributing significantly to research, teaching, and academic leadership. For example, Andrian Liem a Research Fellow at Monash University’s Jeffrey Cheah School of Medicine and Health Sciences.
While Malaysia offers many benefits, working there is not without challenges. Reports of abusive working conditions have cast a shadow over the experience of some foreign workers. Common issues include:
- Unpaid Overtime and Low Wages: Some workers report not being compensated fairly for their labor. A notable case involved employees of Goodyear, a major tire manufacturer, who claimed they were subjected to wrongful salary deductions, excessive working hours, and a denial of their full rights as workers. These workers, primarily from Nepal, Myanmar, and India, reported working up to 229 hours of overtime per month, well beyond the Malaysian legal limit of 104 hours. The company was fined in 2020 for these violations and has faced court rulings demanding back pay for the affected workers (https://www.bworldonline.com/world/2021/05/31/372100/us-tire-maker-goodyear-faces-allegations-of-labor-abuse-in-malaysia-documents-show/)
- Workplace Abuse: A 2019 survey found that 39% of 5,000 Malaysian workers experienced verbal, psychological, or physical abuse, with women disproportionately affected. High-profile cases, like that of an Indonesian maid subjected to torture, highlight the severity of the problem. For instance, in September 2022, an Indonesian maid named Zailis suffered horrific abuse at the hands of her Malaysian employer, a police officer. She was found with severe burns from boiling water, a broken hand, and weight loss of over 30 kilograms due to prolonged neglect and torture.
(https://www.theindonesia.id/news/2022/09/06/183000/embassy-demands-answer-after-migrant-worker-brutally-tortured-in-malaysia)
- Forced Labor: Instances of forced labour and poor living conditions have been documented, prompting organizations like the International Labour Organization (ILO) to push for reforms. For example, the International Labour Organization (ILO) conducted a study in 2022, revealing that nearly 30% of migrant domestic workers in Malaysia were subjected to conditions that meet the ILO’s definition of forced labour. These workers, mostly from Indonesia, face long hours, low wages, unpaid overtime, and restricted freedom, such as limitations on movement and the inability to change employers.
The Malaysian government has introduced laws such as the Occupational Safety and Health Act 1994 to address issues related to safety, health and welfare among all Malaysian workforces. Workers can report abuses to the Department of Occupational Safety and Health, which investigates and, if justified, brings cases to court. However, enforcing these laws and ensuring accountability remains a challenge.
For Indonesians seeking better opportunities, Malaysia offers significant advantages, including higher living standards and cultural familiarity. However, potential workers must weigh these benefits against the risks of workplace abuse and exploitation. Thorough research and caution when choosing employers can help mitigate these risks and ensure a more positive working experience. Potential workers from Indonesia should be encouraged to enter Malaysia in procedural way established by the two Governments to avoid unnecessary burden or problems in the future.
Malaysia will continue to be an attractive place for Indonesians workers if Indonesia does not improve the welfare of its people by providing more job opportunities with competitive salary. Evenly distributing and diversifying its economy is a must if it wants to have a chance of overcoming poverty. If working in Malaysia is seen as a better choice, the Indonesian workers need to equip themselves with the appropriate knowledge on Malaysia’s law, culture and diversities so that they won’t get trapped in unfortunate circumstances.