Why do foreign workers often end up working illegally?

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Foreign Workers Often Resort to Illegal Status Due to Systemic Costs and Exploitative Practices

Foreign workers in Malaysia frequently find themselves in illegal working situations primarily due to the substantial costs associated with the legal employment process, additional charges imposed by private employment agencies, and issues with medical screenings. These financial burdens and bureaucratic hurdles can incentivize workers to operate outside the legal framework. Furthermore, the existence of a market for counterfeit foreign worker cards offers a way to circumvent annual charges and immigration levies, saving workers between RM4,500 and RM5,000 per year. This points to a system where the legal pathways are financially prohibitive for many, pushing them towards illicit arrangements.
Escalating Costs Drive Workers to Illegality

The pathway to legal employment in Malaysia for foreign workers is often fraught with significant expenses. Beyond the initial recruitment fees, the costs associated with the extension of work permits and mandatory medical screenings can accumulate rapidly. Private employment agencies, which play a crucial role in the recruitment process, often add substantial extra charges. These combined financial pressures can make it difficult for workers to sustain their legal status, particularly when their earnings are modest. The allure of avoiding these ongoing costs by working illegally, even with the inherent risks, becomes a compelling option for many.
Exploitative Practices and Lack of Oversight Facilitate Illegal Work

Unscrupulous employers and a lack of stringent oversight contribute significantly to the prevalence of illegal foreign workers. It is not uncommon for employers to confiscate workers' passports under the guise of safekeeping, a practice that effectively grants them leverage to threaten workers with deportation. This control makes workers vulnerable and less likely to report abuses or seek recourse. Additionally, some individuals enter Malaysia on social visit passes with the intention of working in sectors like retail, food service, and entertainment, bypassing formal work permit channels entirely. When enforcement actions occur, the focus is often on the workers, while employers may escape legal censure, further perpetuating the cycle.
Porous Borders and Underground Networks Enable Undocumented Entry

The geographical landscape of Malaysia, with its extensive coastlines and land borders, presents challenges in controlling undocumented entry. Many individuals from neighbouring countries, including Myanmar, Thailand, Indonesia, and the Philippines, exploit these porous borders to enter Malaysia illegally, either by sea or land. This clandestine entry is often facilitated by underground networks within the manpower industry. The discovery of transit camps, such as those found in Wang Kelian in 2015, revealed the grim reality of human trafficking and exploitation that can occur during these illegal journeys, highlighting the persistent issue of undocumented migration.

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Why do foreign workers often end up working illegally?

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