Many chipmakers in Malaysia’s semiconductor manufacturing heartland have stopped taking orders due to a shortage of workers and labor, with more than 1 million workers in all major industries in short supply, Reuters reported Thursday.
Malaysia has a labor shortage of at least 1.2 million workers in major industries, including manufacturing, construction and other sectors, according to local industry and government data. As demand increases, labor shortages become more and more serious. Fifteen thousand workers were out of work, forced to stop working and lost orders. To put the figures into context, Malaysia has a Labour shortage of 550,000 in construction, 120,000 in palm oil, 15,000 in chip manufacturers and 12,000 in medical glove manufacturers.
Malaysia is mainly dependent on exports. It has grown rapidly in recent years and is a key link in the global supply chain. However, manufacturing, agriculture, services and other industries rely on millions of foreign workers when Malaysians do not want to be exposed to dirty, dangerous and difficult work.
While the Malaysian government lifted the ban on foreign workers in February, official approval has been slow and Labour protection talks with Indonesia and Bangladesh have been delayed, leading to delays in the mass repatriation of foreign workers.
Mr Ong Su Tei, chairman of the Semiconductor Industry Association of Malaysia, said local people were not interested in the semiconductor industry as chipmakers had to turn down customer orders due to massive Labour shortages. Within six months, many fled.
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