UPSI Digital Repository (UDRep)
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UPSI Digital Repository (UDRep)
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| Abstract : Perpustakaan Tuanku Bainun |
| This study explores the impact of key macroeconomic factors_GDP, unemployment rate, and exchange rate_on the foreign labour force in Malaysia over the period from 1995 to 2023. The research investigates both short-term and long-term relationships between these variables by using the ARDL approach. Data from the Department of Statistics Malaysia and the World Bank were utilized, with variables transformed into natural logarithms for better interpretation. The findings highlight that GDP growth positively influences the demand for foreign labour, particularly in labour-intensive sectors like construction and manufacturing. A higher unemployment rate tends to reduce foreign labour inflows as local workers fill available positions, while a weaker Malaysian Ringgit enhances the attractiveness of working in Malaysia due to increased remittance value. Long-term trends show that economic growth continues to drive foreign labour demand, while exchange rate fluctuations exert a more limited but consistent influence. The results offer valuable insights for policymakers, emphasizing the need for a balanced approach to economic growth, unemployment management, and exchange rate stability to optimize foreign labour utilization without undermining local employment. |
| References |
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