Managing foreign labour in Malaysia’s construction sector: practices and constraints

Abstract

The Malaysian construction sector is heavily dependent on foreign labour, making effective labour management a critical factor for project success. Despite their essential contributions to construction delivery and industry growth, foreign labourers often face challenges related to inadequate governance, weak enforcement, and suboptimal on-site management, exposing them to poor housing, low wages, unsafe conditions, and limited labour rights. These issues not only undermine worker well-being but also negatively impact productivity and project performance. This study investigates foreign labour management practices in Malaysia through a survey of 282 construction labourers using a 46-item questionnaire. The results indicate strong performance in workplace safety, supportive supervision, and accommodation management, while mid-level ratings were observed for job clarity, fair compensation, and training opportunities. High scores reflect better-performing sampled sites and do not mean issues are absent Weaknesses were identified in worker participation in decision-making and awareness of policies and labour rights. The findings underscore the need to enhance communication, participatory management, and policy awareness to improve worker satisfaction, compliance, and overall project outcomes. Strengthening these labour management practices is essential not only for protecting foreign labourers’ well-being but also for optimizing productivity and ensuring the effective execution of construction projects in Malaysia.