PSZ 19:16 (Pind. 1/97)
UNIVERSITI TEKNOLOGI MALAYSIA
BORANG PENGESAHAN STATUS TESIS
JUDUL:
MANPOWER NEEDS IN CONSTRUCTION INDUSTRY: FOREIGN LABOUR
ISSUES AND IMPLICATIONS
SESI PENGAJIAN: 2004/2005
Saya
LING SOK PING
(HURUF BESAR)
mengaku membenarkan tesis (PSM/Sarjana/Doktor Falsafah)* ini disimpan di Perpustakaan
Universiti Teknologi Malaysia dengan syarat-syarat kegunaan seperti berikut:
1.
2.
3.
4.
Tesis adalah hakmilik Universiti Teknologi Malaysia.
Perpustakaan Universiti Teknologi Malaysia dibenarkan membuat salinan untuk tujuan pengajian
sahaja.
Perpustakaan dibenarkan membuat salinan tesis ini sebagai bahan pertukaran antara institusi
pengajian tinggi.
** Sila tandakan (  )
SULIT
(Mengandungi maklumat yang berdarjah keselamatan atau
kepentingan Malaysia seperti yang termuktub di dalam AKTA
RAHSIA RASMI 1972)
TERHAD
(Mengandungi maklumat TERHAD yang telah ditentukan oleh
organisasi/badan di mana penyelidikan dijalankan)
TIDAK TERHAD
Disahkan oleh
(TANDATANGAN PENULIS)
(TANDATANGAN PENYELIA)
Alamat Tetap:
78, New Village, Kampung Koh
32000 Sitiawan, Perak.
Assoc. Prof. P.M. Dr. Muhd Zaimi Bin Abd.Majid
Nama Penyelia
Tarikh: 04th April 2005
CACATAN:
*
**

Tarikh: 04th April 2005
Potong yang tidak berkenaan.
Jika tesis ini SULIT atau TERHAD, sila lampirkan surat daripada pihak berkuasa/organisasi
berkenaan dengan menyatakan sekali sebab dab tempoh tesis ini perlu.
Tesis dimaksudkan sebagai tesis bagi Ijazah Doktor Falsafah dan Sarjana secara penyelidikan, atau
disertasi bagi pengajian secara kerja kursus dan penyelidikan, atau Laporan Projek Sarjana Muda
(PSM).
“I/We* hereby declare that I/we* have read this thesis and in my/our* opinion this
thesis is sufficient in terms of scope and quality for the award of the degree of
Master of Science in Construction Management
Signature
: ……………………………………………….
Name of Supervisor
: Assoc. Prof. Dr. Muhd. Zaimi Bin Abd Majid
Date
: 04th April 2005
“I/We* hereby declare that I/we* have read this thesis and in my/our* opinion this
thesis is sufficient in terms of scope and quality for the award of the degree of
Master of Science in Construction Management
Signature
: ……………………………………………….
Name of Supervisor
: Assoc. Prof. Dr. Muhd. Zaimi Bin Abd Majid
Date
: 04th April 2005
I declare that this project report entitled “Manpower Needs in Construction Industry:
Foreign Labour Issues and Implications” is the result of my own research except as
cited in the references. The project report has not been accepted for any degree and
is not concurrently submitted in candidature of any other degree.
Signature
: ……………………….
Name
: LING SOK PING
Date
: 04th April 2005
Dedicated to
My beloved mother, father and all my family members
ACKNOWLEDGEMENT
In preparing this project report, I was in contact with many people. They
have contributed towards my understanding and thoughts. In particular, I wish to
express my sincere appreciation to my project supervisor, Assoc. Prof. Dr. Muhd.
Zaimi Bin Abd. Majid, for his encouragement, advices and motivation. Without his
continued support and constant guidance, this project report would not have been the
same as presented here.
A special thank you goes to all my family members for their patience,
encouragement and understanding throughout this period. In addition, it is not
forgetting also to extend my sincere gratitude to all the questionnaire respondents for
their cooperation and assistance in supplying the relevant data and information.
I am also greatly indebted to all my classmates for their generous support.
Finally, my sincere appreciation also extends to all my colleagues and others who
have provided assistance at various occasions. Unfortunately, it is impossible to list
all of them in this limited space.
ABSTRACT
Jobs in the construction industry are becoming unpopular among the working
population in Malaysia. Consequently, the inflow of the foreign labour into the
country served to overcome this labour shortage. This study tends to focus on
foreign labour issues and implications.
It is impossible to address the whole
spectrum of manpower needs in construction industry within the duration given but
more effectively address a particular aspect of foreign labour issues on causes,
impacts and ways to minimise the impacts on employing foreign labour. Literature
review has been conducted and questionnaire method has been selected. The data
obtained was analysed through quantitative and qualitative approach. In conclusion,
the major cause of employing the foreign labour in construction industry is the
foreign labour can be easily recruited by the employer to minimise manpower
shortage in the construction industry. The best ways to minimise the negative
impacts effectively is to tighten the hiring rule in controlling the inflow of foreign
labour. Hopefully, these research findings will provide some indications to all the
players in the construction industry and to give attention on foreign labour issues.
ABSTRAK
Pekerjaan dalam bidang pembinaan semakin kurang menarik perhatian
golongan pekerja di Malaysia. Akibatnya, pengaliran masuk pekerja-pekerja asing
ke dalam negera menjadi semakin penting untuk mengatasi masalah kekurangan
pekerja ini. Penyelidikan ini berkecenderungan memberi tumpuan kepada isu dan
implikasi tentang pekerja asing.
Adalah mustahil untuk membincang seluruh
spektrum keperluan tenaga kerja di dalam bidang pembinaan dalam jangka masa
yang telah diberikan. Tetapi, adalah lebih berkesan untuk membincang isu pekerja
asing ini dengan khususnya dalam aspek-aspek tentang punca-punca pengambilan
pekerja asing, kesannya dan cara-cara untuk mengurangkan kesan negatif ini.
Kajian kesusasteraan telah dikendalikan dan kajian soal selidik telah dipilih untuk
mendapatkan maklumat bagi penyelidikan ini.
Maklumat yang diperolehi telah
dianalisikan dengan mengunakan kaedah kuantiti dan kualiti. Pada kesimpulannya,
pekerja-pekerja asing boleh senang didapati oleh majikan untuk mengurangan
masalah kekurangan tenaga buruh dalam bidang pembinaan merupakan punca utama
pengambilan pekerja asing dalam bidang pembinaan. Cara yang paling berkesan
untuk mengurangkan kesan negatif pekerja asing ialah mengetatkan undang-undang
pengambilan pekerja untuk mengawasi kemasukan pekerja asing.
Adalah
diharapkan bahawa penyelidikan ini akan memberi sedikit sebanyak petunjuk
kepada golongan yang terlibat dalam bidang pembinaan supaya lebih mengambil
perhatian kepada isu pekerja-pekerja asing.
TABLE OF CONTENTS
CHAPTER
1
2
TITLE
PAGE
TITLE
i
DECLARATION
ii
DEDICATION
iii
ACKNOWLEDGEMENT
iv
ABSTRACT
v
ABSTRAK
vi
TABLE OF CONTENTS
vii
LIST OF TABLES
xii
LIST OF FIGURES
xiv
LIST OF APPENDICES
xvi
INTRODUCTION
1
1.1
Introduction
1
1.2
Background of Study
1
1.3
Problem Statement
3
1.4
Aim and Objectives of Research
4
1.5
Scope of Study
5
1.6
Justification of Study
5
1.7
Research Methodology
6
1.8
Summary of Each Chapter
8
LITERATURE REVIEW
9
2.1
Introduction
9
2.2
Why Foreign Labour in Construction Industry
9
2.3
Basic Data on Foreign Labour
10
2.4
Causes Influencing the Inflow of Foreign Labour
12
2.4.1
Inflow of Foreign Labour in
Construction Industry
2.5
The Impacts of Employing Foreign Labour in
Construction Industry
2.5.1
2.7
3
15
Some Positive Impacts of Foreign
Labour in Construction Industry
2.6
13
20
Ways to Minimise the Negative Impacts of
Employing Foreign Labour
22
Summary
29
RESEARCH METHODOLOGY
30
3.1
Introduction
30
3.2
Outline of the Research Methodology Process
30
3.3
Formulation of the Research Problems
32
3.3.1
Identification of Research Topic
33
3.3.2
Conducting an Exploratory Review
33
3.3.3
Conducting a Preliminary Literature
Review
3.3.4
Identifying the Aim, Objectives and
Scope of Research
3.4
3.5
3.6
33
34
Selection of Data Collection Method
35
3.4.1
Literature Review
35
3.4.2
Questionnaire Survey
36
3.4.3
Questionnaire Design
37
Determination for Research Design
38
3.5.1
Choosing Type of Research Design
39
3.5.2
Choosing on Type of Surveys
40
3.5.3
Sampling Procedures
40
Determination of Data Analysis and
Interpretation Method
3.6.1
Determination of Data Processing
Method
3.6.2
41
41
Determination of Data Analysis
Technique
43
4
3.7
Conclusions and Recommendation
47
3.8
Research Report
47
3.9
Summary
48
RESEARCH ANALYSIS
49
4.1
Introduction
49
4.2
Respondent Profile
49
4.2.1
Job Position
50
4.2.2
Year of Experience
50
4.3
Nature of Company
51
4.3.1
Principle Business
51
4.3.2
Specialisation
52
4.3.3
Work Involvement
53
4.3.4
CIDB and PKK Qualification
53
4.4
General Information on Foreign Labour
4.5
Causes of Employing Foreign Labour in
Construction Industry
4.5.1
56
Construction Jobs Known As High
Risks Jobs
57
4.5.3
Low Wages for Construction Jobs
58
4.5.4
Local Young Generation High Education
Level
59
4.5.5
Foreign Labour can be Easily Bring In
60
4.5.6
Causes of Employing Foreign
Labour in Construction Industry
4.6
56
Construction Jobs Poor Images and
Poor Working Conditions
4.5.2
54
61
Impacts of Employing Foreign Labour in
Construction Industry
4.6.1
62
Cultural Pollution and Over
Foreignisation
63
4.6.2
Social Problems
64
4.6.3
Political Stability and Security
65
4.6.4
Outflow of Money
66
4.6.5
Maintaining Lower Wage Levels
67
4.6.6
Taking Jobs Away From Locals
68
4.6.7
Foreign Labour Cause Work Delay
69
4.6.8
Low Productivity and Quality
70
4.6.9
Problems on Mobilising New Foreign
Labour
71
4.6.10 Accommodation Problems for Foreign
Labour
4.6.11 Minimise Manpower Shortage
72
73
4.6.12 Impacts of Employing Foreign
Labour in Construction Industry
4.7
74
Ways to Minimise the Negative Impacts of
Employing Foreign Labour
75
4.7.1
Strengthening National Security
75
4.7.2
Tighten Hiring Rules
76
4.7.3
Minimum Wage System
77
4.7.4
Permit Only for Trained Foreign Labour
78
4.7.5
Streamlines Procedures for Employing
Foreign Labour
79
4.7.6
Local First Policy
80
4.7.7
Green Card System
81
4.7.8
Construction Labour Exchange Centre
4.7.9
Berhad
82
Industrialised Building System
83
4.7.10 National Vocational Training Council
(NVTC)
84
4.7.11 Ways to Minimise the Negative
Impacts of Employing Foreign Labour
4.8
5
Summary
85
87
CONCLUSIONS AND RECOMMENDATIONS
89
5.1
Introduction
89
5.2
Conclusions
89
5.3
Recommendations
92
5.4
Future Research
93
REFERENCES
95
APPENDICES
100
LIST OF TABLES
TABLE NO.
4.1
TITLE
PAGE
Response on Construction Jobs Poor Images and
Poor Working Conditions
56
Response on Construction Jobs Known As High
Risk Jobs
57
4.3
Response on Low Wages for Construction Jobs
58
4.4
Response on Local Young Generation High
Education Level
59
4.5
Response on Foreign Labour Can Be Easily Bring In
60
4.6
Overall Response on Causes of Employing Foreign
Labour in Construction Industry
61
4.2
4.7
Response on Cultural Pollution and Over
Foreignisation
63
4.8
Response on Social Problems
64
4.9
Response on Political Stability and Security
65
4.10
Response on Outflow of Money
66
4.11
Response on Maintaining Lower Wage Levels
67
4.12
Response on Taking Jobs Away from Locals
68
4.13
Response on Foreign Labour Cause Work Delay
69
4.14
Response on Low Productivity and Quality
70
4.15
Response on Problems on Mobilising New Foreign
Labour
71
Response on Accommodation Problems for Foreign
Labour
72
4.17
Response on Minimising Manpower Shortage
73
4.18
Overall Response on Impacts of Employing Foreign
Labour in Construction Industry
74
4.19
Response on Strengthening National Security
75
4.20
Response on Tighten Hiring Rules
76
4.16
4.21
Response on Minimum Wage System
77
4.22
Response on Permit Only for Trained Foreign Labour
78
4.23
Response on Streamlines Procedures for Employing
Foreign Labour
79
4.24
Response on Local First Policy
80
4.25
Response on Green Card System
81
4.26
Response on Construction Labour Exchange Centre
Berhad
82
4.27
Response on Industrialised Building System (IBS)
83
4.28
Response on National Vocational Training Council
(NVTC)
84
Overall Response on Ways to Minimise the
Negative Impacts
85
Top Three Ranking in Causes, Impacts and Ways to
Minimise the Impacts on Employing Foreign Labour
in Construction Industry
87
4.29
4.30
LIST OF FIGURES
FIGURE NO.
TITLE
PAGE
1.1
Outline of the Research Methodology Process
7
3.1
Outline of the Research Process
32
3.2
Step in Research Problem Formulation
32
3.3
Major Decisions of Research Design
39
3.4
Steps in Data Processing
41
4.31
Percentage of Job Position
50
4.32
Percentage of Year of Experience
51
4.33
Percentage of Principle Business
52
4.34
Percentage of Specialisation
52
4.35
Percentage of Work Involvement
53
4.36
Percentage of CIDB Qualification
53
4.37
Percentage of PKK Qualification
54
4.38
Percentage of Foreign Labour Employing on Site
55
4.39
Percentage of Response on Construction Jobs Poor
Images and Poor Working Conditions
57
Percentage of Response on Construction Jobs Known
As High Risk Jobs
58
Percentage of Response on Low Wages for
Construction Jobs
59
Percentage of Response on Local Young Generation
High Education Level
60
Percentage of Response on Foreign Labour Can Be
Easily Bring In
61
Percentage of Response on Cultural Pollution and
Over Foreignisation
63
4.45
Percentage of Response on Social Problems
64
4.46
Percentage of Response on Political Stability and
Security
65
4.40
4.41
4.42
4.43
4.44
4.47
Percentage of Response on Outflow of Money
66
4.48
Percentage of Response on Maintaining Lower
Wage Levels
67
Percentage of Response on Taking Jobs Away
from Locals
68
Percentage of Response on Foreign Labour Cause
Work Delay
69
Percentage of Response on Low Productivity and
Quality
70
Percentage of Response on Problems on Mobilising
New Foreign Labour
71
Percentage of Response on Accommodation
Problems for Foreign Labour
72
Percentage of Response on Minimising Manpower
Shortage
73
Percentage of Response on Strengthening National
Security
76
4.56
Percentage of Response on Tighten Hiring Rules
77
4.57
Percentage of Response on Minimum Wage System
78
4.58
Percentage of Response on Permit Only for Trained
Foreign Labour
79
Percentage of Response on Streamlines Procedures
for Employing Percentage of Foreign Labour
80
4.60
Percentage of Response on Local First Policy
81
4.61
Percentage of Response on Green Card System
82
4.62
Percentage of Response on Construction Labour
Exchange Centre Berhad
83
Percentage of Response on Industrialised Building
System (IBS)
84
Percentage of Response on National Vocational
Training Council (NVTC)
85
4.49
4.50
4.51
4.52
4.53
4.54
4.55
4.59
4.63
4.64
LIST OF APPENDICES
APPENDIX
A
TITLE
Questionnaire Survey Form
PAGE
100