Malaysia’s semiconductor industry suspend orders as migrant labor shortage hits

According to the latest report, local companies in Malaysia, including semiconductor factories, have had to abandon billions of dollars in orders due to the spread of labor shortages.

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Government, business and industry sources interviewed by the newspaper said that although Malaysia has eased restrictions on the entry of overseas workers, overseas workers have not yet arrived on a large scale due to problems with approval efficiency and disputes with labor-sending countries over worker protection issues.

Data shows that Malaysia still has a labor gap of 1.2 million people in the manufacturing, construction, and planting industries, of which 15,000 people are needed in the integrated circuit industry.

Wong Siew Hai, president of the Malaysian Semiconductor Industry Association, told the agency that chip manufacturers had to stop taking orders and that jobs in this industry were not attractive to locals, and many new employees would lose their jobs within half a year.

The supply of overseas labor, an important part of the Malaysian labor market, is still tight. Major labor exporting countries, Bangladesh and Indonesia, have accused Malaysia of insufficient protection of foreign labor rights. Earlier this month, the Malaysian side stated that it would increase the basic wages of foreign labor to effectively protect their legitimate rights and interests. , the relevant policy details are being finalized.

(via)