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Reuters
Reuters
Business
Liz Lee, Rozanna Latiff and Mei Mei Chu

Malaysia firms turn down orders as migrant labour shortage hits

An Indonesian migrant worker, Ari Rohman, pushes a cart as he collects bunches of palm oil fresh fruit during harvest at a plantation in Banting, Selangor, Malaysia, June 10, 2022. REUTERS/Hasnoor Hussain

Malaysian companies from palm oil plantations to semiconductor makers are refusing orders and forgoing billions in sales, hampered by a shortage of more than a million workers that threatens the country's economic recovery.

Despite lifting a COVID-19 freeze on recruiting foreign workers in February, Malaysia has not seen a significant return of migrant workers due to slow government approvals and protracted negotiations with Indonesia and Bangladesh over worker protections, say industry groups, companies and diplomats.

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