[UPDATED] 2027 Budget: Johari urges faster automation, less reliance on foreign workers

KUALA LUMPUR: Malaysian industries must hasten automation and progressively cut their reliance on foreign labour, stated Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani as he prepares to present the 2027 Budget next month. Johari argued that businesses' dependence on foreign labor has hindered automation and kept costs linked to wages paid to foreign workers.

He emphasized the urgency of integrating automation into operations and production as swiftly as feasible, given that foreign workers will not be as readily available in the future.

Johari urged businesses of all sizes to adopt automation to gradually reduce their dependence on foreign workers for dirty, dangerous, and difficult (3D) jobs. He stressed that any reduction would occur gradually, not immediately, and would lead to a more level playing field. Companies with limited access to foreign workers would struggle to compete with those employing them in large numbers.

Johari highlighted that the country has long relied heavily on foreign workers without investing in automation. Consequently, their cost structures remain low because they are benchmarked against foreign worker wages. He called for more stringent approval processes for foreign workers, with employers required to identify 3D positions and explain the salaries and qualifications needed for alternative roles.

He also refuted claims that Malaysians were unwilling to work, insisting that employers must assess if the offered wages made the jobs financially worthwhile. Johari cited instances where Malaysians endured long daily commutes to Singapore due to the high financial returns, challenging the notion that locals were unwilling to take such jobs. The 2027 Budget is set to be presented in the Dewan Rakyat on October 9.