The Migrant Workers

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CHAPTER 1 : INTRODUCTION 1.1 Title The title of this research is “The Migrant Workers’ Effect on Labour Productivity towards Malaysian Agriculture Sector”. 1.2 Background of Study Based on Hoogvelt (1997:117-118), globalization can be characterized in terms of where the population is depending increasingly in a system. The phenomenon of globalization is impossible to be avoided and it forced foreign workers to penetrate Malaysian labour market. The strong recruitment of foreign workers in Malaysia is no more a new event for the country. It dated back to the early nineteenth century which is the British colonial period, where Malaysia was one of the receiving countries of foreign nationals, which particularly originated from China, India and Indonesia, to work in plantations, constructions and mines sectors (Kaur, 2010; Dannecker, 2005; Lee & Sivananthiran, 1996). In the year 2010, Amnesty International wrote that close to 20% out of the total Malaysia’s labour force are migrant workers. The number did not include the additional 2.2 million illegal migrant workers. 1.3 Problem Statement According to Statistics Department, the contribution of agriculture to the Malaysia’s gross domestic product GDP declined from 28.8% in 1970 to 7.3% in 2010. But in poorer states such as Perlis and Sabah, agriculture’s share of GDP can be as high as 25%-30%. However, recently issues regarding foreign workers migrant back to their homeland has become significant towards the agricultural sector. 1.4 Research Objective The objectives of this study are: a) to determine the impact of migrant workers towards the productivity of labour in the Malaysian agriculture sector. b) to identify the causality between the domestic labour force and the forei... ... middle of paper ... ...imates the elasticity of substitution between labour in Denmark. They divide the workers by their educational level and occupation skills. They found skilled workers with all other labour inputs and capital had a higher elasticity of substitution in larger firms than smaller firms. Besides, the elasticity of substitution between skilled and unskilled workers was also larger in the large firms. There are many studies on the consequences of impact of immigrants on different angle and the relationship between domestic and foreign workers, but currently it is important to recognize more about the economic impact of foreign workers on labor productivity especially in Malaysian agriculture sector. Additionally, it is also important to investigate the relationship between domestic labor and foreign labor, whether their substitute or complement. 2.3 Conceptual Framework

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