Issues in Centralized Housing for Foreign Workers in the Manufacturing and Construction Sectors in Malaysia

Living conditions of migrant or foreign workers have been a grave concern in countries relying on external workforce. The outbreak of Covid19 pandemic confirmed the dreadful living conditions of foreign workers which inevitably contributed to the spread of the disease. In Malaysia, the Employees’ Minimum Standards of Housing and Amenities Act 1990 (Act 446) regulated the accommodation of workers. The amendment to Act 446, which was implemented in 2020, was timely to improve the living conditions of the workers. One of the outcomes of Act 446 was the expansion of usage of Centralized Labour Quarters (CLQ) to house foreign workers. While this is a positive step towards improving the living conditions of foreign workers, there are obstacles involved. The objective of this paper is to examine the issues encountered by the employers in housing foreign workers in CLQ and employers’ effort to comply with Act 446. Focus group discussion (FGD) was conducted with representatives of employers from relevant industries. The findings revealed that while CLQ provides better housing of foreign workers, there are issues which affect both employers and workers. Lack of CLQ in appropriate location is a challenge for employers from the manufacturing and construction sectors, necessitating temporary accommodations to be permitted. Division of responsibilities between the employer and foreign workers for incidental costs caused by the workers need to be addressed.