Construction foreign labour skill drain

Abstract

Construction industry is labor-intensive based and in the demand of unskilled, semiskilled and skilled labors. Presently, the nation is relying mainly on foreign labor as they are inexpensive, easier to recruit, hardworking and willing to work extra hours. Poor participation of the local labors due to unattractive salary scale and working environment (3 D’s - Dirty, Difficult and Dangerous) have encourage the employment of foreign labours.. The statistics shows that many graduates from Akademi Binaan Malaysia (ABM), whom trained to work at site failed to return to their intended work place. As a result the foreign labors are preferable and Malaysia has been both a laborimporting and labor-exporting country. This research aims at investigating skills acquisition and skill drain in the construction industry in Malaysia. The objectives of the research include to study employment issues in construction industry in Malaysia, to analyze the history and current employment of the selected foreign construction workers, to analyze the skills gained during the employment period of the selected foreign construction workers and to develop a sample of employment profile for foreign workers based on respondents’ feedbacks. A survey on 300 foreign labor using structured questionnaire and informal interview carried out to gather information related to the research. The research shows that most of the respondents are Indonesian and they are unskilled when arrived in Malaysia. Most of the respondents have worked in at least in 1 to 3 projects. The analysis shows the longer these foreign labors stays in the country, the better skills they will acquire due to the exposure on projects they involved; subsequently they will earn higher income hence limiting the opportunities for the local to participate in the industry. The research also reveals that no formal training from employers and skills were gained through hands-on experience and practices at site and learning the skills through their head of group (Kepala). These skills accumulated proportionately with their years of service in the country. Once their employment contract or working permit is expired, they will bring along these skills or knowledge hence create the skill drain in the industry. Construction industry in Malaysia has become a training ground for these foreign labors. An Employment Profile developed for Foreign Workers Based on Respondents’ Feedbacks. The profile shows that both increment and decrement of the number of respondents vs. years of service. In the Increment line where skills have developed and respondents became skilled after several years working in the country. The decrement line of 5 year and above indicate that they will either leave the country (working permit expire) and to seek better opportunities or develop into different trades or works. Although there have been less concern over the skill drain, the research proposes that strategic plan and control measures need to be taken because skill drain issues will give an impact to the industry and country. This can be done by empowering the existing training centers, offering a better or competitive salary scale and benefits to the locals. This will consequently improve the image of the industry by promoting better working conditions to the youth. The efforts will promote better working environment and hopefully the industry is able to attract local workforce especially the ILP, GIATMARA and ABM graduates to join the construction workforce