Why Refugees’ Right to Work in Malaysia Can Make a Difference

Refugees and asylum seekers in Malaysia are denied access to formal education and the labour market. Studies on the economic impact of refugees' work rights show that refugees could create fiscal contributions and further economic opportunities for the host countries if they were given the right to access employment opportunities. This article will highlight three reasons why the refugees’ right to work in Malaysia is important - the economic contribution of refugees, the right to work being an essential human right and the right of refugees as migrant workers. 

Nobody wants to be forced to leave their home behind and asked to rebuild their life somewhere else. Refugees are those who have fled war, persecution, and violence and are seeking safety and protection in another country. According to UNHCR statistics, as of May 2023, there are 181, 300 refugees and asylum seekers registered with UNHCR Malaysia. Malaysia is not a signatory to the 1951 Refugee Convention and its 1967 Protocol in the absence of any domestic legal framework on the refugee and asylum system, which means the country does not recognize refugee status and shared responsibility to provide protection for the refugees of their rights. As a result, refugees and asylum seekers in Malaysia are not granted access to fundamental needs including formal education and access to  employment that is safe and lawful, and they are constantly being excluded and stigmatised with labels such as "undocumented" and "illegal". All these conditions make refugees and asylum seekers particularly vulnerable to the risks of forced labour and exploitation in the workplace. Amid the global migration crisis where the refugee crisis has become more protracted, host countries have growing concerns about allowing refugees access to the formal labour market. Refugees and asylum seekers are viewed as a threat or burden to the local labour market promoting narratives such as that they would take away employment opportunities from citizens. Moreover, some people fear the pull factors that if refugees are allowed to formally work, there will be a large influx of refugees and migrants to cross borders to find employment opportunities. 

In this article, I will share three things you need to know about why the rights to work for refugees in Malaysia matter. First, refugees can in fact contribute to the host country's economy. Institute for Democracy and Economic Affairs (IDEAS) Malaysia's 2019 study revealed that if refugees are given the right to work, they could contribute to over RM3 billion of the annual GDP growth by 2024. Moreover, the research estimates that if refugees were given the right to work, it could create over 4,000 jobs for Malaysians. In the meantime, allowing access to the formal labour market would increase tax contributions by refugees to over RM50 million each year by 2024. Another research by Khazanah Research Institute (2018) shows that foreign workers do not directly affect employment opportunities and wages of the Malaysians, which rejects the idea that foreign workers including refugees will have a negative impact on the Malaysian economy. Furthermore, the Open Political Economy Network (OPEN) contends, "Once refugees start working, this investment may yield seven further dividends", despite the initial investments required for accepting refugees. In summary, the labour of refugees is economically beneficial to a country, contrary to the belief that refugees are an economic burden. 

Secondly, labour rights are human rights. As the Universal Declaration of Human Rights states (Article 23), everyone has the right to work and has the right to equal pay for equal work without any discrimination. Work rights are fundamental human rights that need to be protected universally. The refugee convention also asserts that refugees must be given gainful employment and that any restrictive immigration policy imposed on migrant workers should not be applied to refugees. Recently, there was a milestone ruling by the Industrial Court of Malaysia that ruled in favour of a refugee worker who filed an unfair dismissal claim. Asylum Access Malaysia views this case as indicating refugees can claim statutory labour rights in Malaysian courts despite not having the right to work legally in the country. 

Lastly, the International Labour Organization (ILO) considers refugees' labour rights as migrant workers' labour rights. As a member state of the ILO, Malaysia has launched the National Action Plan on Forced Labour (NAPFEL) 2021-2025 to eliminate any form of forced labour in Malaysia by 2030. It is a significant step taken forward, as the action plan acknowledges the efforts should come across the nation involving various stakeholders. Likewise, building refugees’ self-reliance through livelihood and employment opportunities cannot be achieved by emphasising individual capability when they are left behind without access to safe and lawful employment.

Jisu Kim

Women For Refugees

References 

UNHCR. 2023. Figures at a Glance in Malaysia [Online]. UNHCR. Available: https://www.unhcr.org/my/what-we-do/figures-glance-malaysia

Todd, L., Amirullah, A., & Wan, Y. S. (2019). The economic impact of granting refugees in Malaysia the right to work (Vol. 60, pp. 4-16). Institute for Democracy and Economic Affairs (IDEAS).

Khazanah Research Institute. 2018. The Economic Impact of Foreign Workers in Malaysia. Kuala Lumpur: Khazanah Research Institute. License: Creative Commons Attribution CC BY 3.0.

Legrain, P. 2016. Refugees are not a burden but an opportunity. Available: https://www.oecd.org/migration/refugees-are-not-a-burden-but-an-opportunity.htm

UN High Commissioner for Refugees (UNHCR), The 1951 Convention Relating to the Status of Refugees and its 1967 Protocol, September 2011, available at: 

https://www.refworld.org/docid/4ec4a7f02.html 

Asylum Access. 2023. Malaysia: Court defends refugee worker rights in landmark ruling. Available: https://asylumaccess.org/malaysia-court-defends-refugee-worker-rights-in-landmark-ruling/

ILO. Access to Labour Markets for Refugees and Forcibly displaced persons. Available: https://www.ilo.org/africa/areas-of-work/labour-migration/thematic-areas/WCMS_680002/lang--en/index.htm

ILO. 2021. Malaysia takes major step towards ending forced labour. Available: https://www.ilo.org/asia/media-centre/news/WCMS_829873/lang--en/index.htm