Malaysia's Deputy Minister of Investment, Trade and Industry has suggested that hiring foreign workers becomes more expensive.
The increase is intended to encourage businesses to use automation, pay higher wages to skilled workers, and reduce reliance on cheap labor.
Malaysia has been a leader in technology in Asia, following closely behind Japan, South Korea and Taiwan.
However, today, the country is falling behind as companies prioritize low-cost unskilled foreign labor over investing in technology.
The government is working to change this trend with a new initiative called the Future Ready Financing (FRF) Programme.
This program, with a budget of RM200 million, will support 100 small and medium enterprises (SMEs) to adopt smart technologies by 2027, creating more than 500 highly skilled jobs.
Working with agencies such as MIDF, MTDC and Sirim, the program will guide SMEs with financing solutions, expertise and technology.
The aim is for SMEs to embrace advanced manufacturing technology, making them more competitive and sustainable.
This shift not only helps the development of local talent but also prepares businesses for the future with less reliance on foreign labour.
