EXPATRIATES contribute to 4.8% of Malaysia’s gross domestic product (GDP), amounting to RM75bil, according to the Malaysia Productivity Corporation, says the Home Minister.
Datuk Seri Saifuddin Nasution Ismail said the expats also pay RM100mil in income tax to the Inland Revenue Board.
This group, he added, also contributes to the Malaysian economy through education for their children, tourist activities, utility bills, investments and household expenses.
Up till Oct 31, there are 120,183 expatriates, with 64% of them hailing from five countries, which are China (27,460), India (23,131), the Philippines (9,302), Japan (8,739) and Indonesia (8,333), he revealed.
He was responding to Datuk Mohd Shahar Abdullah (BN-Paya Besar), who asked the Home Ministry to state the number and percentage of expatriates in Malaysia by their nationalities and economic contributions from 2019 to 2023.
Saifuddin Nasution said there are three income categories of expats: RM10,000 and above; RM5,000 to RM9,999; and RM3,000 to RM4,999.
Kuala Lumpur is ranked eighth out of 49 major cities for expatriates to live in by Expat City ranking 2023, he noted.
“What’s our attraction? Firstly, the cost of living is relatively low for these expatriates. Secondly, political stability. Thirdly, potential for economic growth. Fourthly, ease of communication.
“All these factors contributed to Malaysia’s ranking last year,” he said.
Meanwhile, Saifuddin Nasution said Malaysia has set a ceiling of 2.58 million foreign workers in the country, or 15% of Malaysia’s total workforce of 17.2 million individuals.
“Currently, there is still a 400,000 deficit before the ceiling of 2.58 million is reached.”
He clarified that there are two categories of foreign workers – expatriates and low-skilled workers.
“For expatriates, the number is only 120,000 out of the 17.2 million workforce, or a mere 1%,” he said, adding that these foreigners are hired for a skill not available within the country or are employed by foreign companies operating in Malaysia.
While for the foreign workers under the 3D (dirty, difficult, dangerous) sector, Saifuddin Nasution said the deficit of 400,000 is worrying.
“This is an issue we need to address. If we freeze it now (hiring of foreign workers)... oil palm fruits cannot be picked, and if the fruits are not picked, the country loses RM28bil a year.
“If there were local workers, the plantation companies would have hired them long ago. That’s the reality,” he added.
This was in response to Dr Abd Ghani Ahmad (PN-Jerlun), who asked if there are any limits to the number of foreign workers, as he claimed that there are 3.4 million foreigners including expatriates in Malaysia.
