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Allow formal refugee employment

THE recent news about the government’s upcoming announcement of refugee employment laws has turned attention to an often-overlooked issue. It has also raised questions about the impact of such a policy.

Since denying refugees access to formal employment is such a multifaceted issue, it is of paramount importance to develop mechanisms that manage and protect them in the long term. This is not only important from a humanitarian perspective, but also necessary in ensuring Malaysia’s security and national interests.

According to the United Nations High Commissioner for Refugees (UNHCR), the global population of forcibly displaced people has grown substantially to 70.8 million in 2018 from 43.3 million in 2009.

Malaysia is seen as an appealing destination and transit country for refugees due to geographical, cultural and economic reasons, and it is imperative that it has the necessary processes and mechanisms to manage such flows in the future.

One of the mechanisms is giving the approximately 120,000 refugees registered with UNHCR in Malaysia access to formal employment.

According to a National Interest Analysis conducted by the Institute of Strategic and International Studies, this idea has often been met with hesitation due to the misconception that refugees would take away jobs, that it could possibly encourage an influx of more refugees, and the concern that the Malaysian public is opposed to it. 

These negative perceptions could be compounded by the lack of information that underlines the potential benefits of allowing refugees to work. For example, from a humanitarian perspective, ensuring refugees are formally employed would prevent their illegal employment in informal jobs that are often dangerous, dirty and demeaning.

These jobs include excessive manual labour at construction sites, with limited labour rights and little to no pay. Women are also often forced to work in the informal and less regulated sectors, as dishwashers or waitresses, where they are vulnerable to exploitation. This can lead to mental and physical trauma for the refugees and, coupled with the sheer desperation to somehow support their families, can also cause mental health challenges.

A 2018 UNHCR report said psychosocial issues and mental health could impact functioning and make the affected individuals less productive in society. Giving refugees access to formal employment would increase their productivity and ensure they enjoy the same protection and do not compete unfairly with local workers.

Otherwise, a system that encourages refugees’ vulnerability and potential exploitation and which denies their protection and safety will continue to exist. 

From a national security angle, only those registered with the UNHCR would be able to obtain work permits, and this may also act as an incentive towards encouraging unregistered and undocumented refugees to formally register themselves.

Registration will ensure that the government can monitor the refugees’ movements and actions, ultimately improving the overall national safety and security.

From an economic angle, by encouraging employers to formally hire refugees, various social issues, resulting from refugees being forced to beg on the streets, or working without a permit, can be minimised.

Many small- and medium-sized enterprises support this idea and have expressed an inclination to provide jobs to refugees if a legal pathway was provided.

There are many economic benefits of allowing refugees to participate in the workforce such as an increase in consumption and payment of taxes. In reality, refugees would be able to fill an existing labour gap, reduce Malaysia’s dependence on foreign workers and improve economic productivity.

Formalising work for refugees could also increase the number of available jobs for locals rather than the common fear of increasing unemployment by occupying an already limited quota of available jobs.

Refugees would complement rather than replace Malaysian workers and this would affect labour markets positively, leading to an increase in the number of available jobs.

While giving refugees access to formal employment has numerous benefits, implementing the policy requires a thorough evaluation of several other aspects and will need to adapt and evolve based on the situation.

For example, labour laws will need to be re-evaluated to ensure that refugees are equally protected like local workers, assimilation strategies will need to be developed and recruitment processes need to be formulated.

It is important to work towards developing the mechanisms to manage globally increasing human displacement. Providing refugees with the ability to participate in the formal sector will no doubt have numerous positive implications for the economy, security and overall harmony of the country. It will allow refugees to contribute to the economy legitimately, reduce security concerns related to their employment in informal sectors, and prevent them from being exploited.


The views expressed in this article are the author’s own and do not necessarily reflect those of the New Straits Times

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