What is the justification for stopping foreign worker hires in services?

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Justification for Halting Foreign Worker Hires in Specific Service Sectors

The government's decision to cease the hiring of foreign workers in certain service sub-sectors, including laundry, textile, hair dressing, and goldsmith businesses, is primarily driven by the objective to prioritise local employment opportunities. This strategic move, agreed upon by a joint committee of the Home Ministry and the Human Resources Ministry, also aims to redirect focus towards economic sectors deemed more stimulating. The proposal to phase out foreign workers in these areas was initially put forth by the Ministry of Domestic Trade and Consumer Affairs.

This policy shift will be implemented in stages, commencing this year and concluding by 2021. The underlying rationale is to create a more favourable employment landscape for Malaysian citizens within these service industries. By limiting the intake of foreign labour in these specific fields, the government intends to encourage greater participation of the local workforce.

Furthermore, the discontinuation is part of a broader economic strategy to channel resources and attention to sectors that are considered to have a higher potential for economic growth and stimulation. This approach suggests a re-evaluation of where foreign labour is most critically needed, with a preference for industries that offer greater returns or are essential for national development. The expectation is that this will foster a more robust domestic job market.

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What is the justification for stopping foreign worker hires in services?

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