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Strategic Labour Integration in Malaysia: Afghan Skilled Refugees and the Case for Regional Leadership

  • Writer: Bait Al-Amanah
    Bait Al-Amanah
  • 2 hours ago
  • 7 min read

Written by Mustafa Abdul Ghafoor, Guest Contributor

Executive Summary

Malaysia is home to over 192,200 refugees, including around 2,800 Afghan nationals. While many of them possess high-level skills – such as in engineering, IT, and healthcare – their access to formal employment remains limited, resulting in their talents often being channelled into informal, low-wage sectors. This article explores the feasibility and potential impact of implementing a Labour Integration Programme (LIP) for high-skilled refugees in Malaysia, drawing on semi-structured interviews with Afghan refugees, policymakers, NGOs, and community leaders. Findings suggest that a well-designed LIP could alleviate labour shortages in critical sectors like healthcare, construction, and technology, contribute to national economic growth, and reduce dependency on humanitarian assistance. While barriers such as unrecognised qualifications, legal constraints, and public misconceptions persist, the study proposes sector-specific work permits, a national skills validation framework, and public-private partnerships as practical solutions. A pilot programme in Kuala Lumpur is recommended to test these interventions, capitalising on the city’s institutional infrastructure and proximity to key stakeholders. Ultimately, the LIP is positioned not only as a mechanism for economic inclusion but also as a strategic pathway for aligning Malaysia’s humanitarian responsibilities with its development goals.


Malaysia, a non-signatory to the 1951 Refugee Convention, currently hosts over 192,200 refugees, including more than 2,800 Afghan nationals (UNHCR Malaysia, 2024). While detailed occupational data remains limited, qualitative interviews and NGO reports suggest that some Afghan refugees possess professional backgrounds in sectors such as healthcare, engineering, and information technology (Todd et al., 2019; NGO1, 2024). With only 2.49% of refugees successfully resettled in 2024 and an average processing time of five years, their prolonged presence has placed mounting pressure on host communities and humanitarian systems (UNHCR Malaysia, 2024). Barred from formal employment by the Immigration Act 1959/63, these professionals are relegated to exploitative informal work, wasting their potential and exacerbating Malaysia’s labour shortages in critical sectors like healthcare and technology (Todd et al., 2019; The Edge Malaysia, 2025). This article investigates the feasibility of a Labour Integration Programme (LIP) to unlock the talents of high-skilled Afghan refugees, using the Intergroup Threat Theory (ITT) to analyse stakeholder perceptions (Stephan & Stephan, 2000). By aligning humanitarian duties with economic goals, Malaysia can transform the refugee challenge into a catalyst for growth and regional leadership.


Economics Contribution

Integrating high-skilled Afghan refugees into Malaysia’s labour market could yield significant economic benefits. With labour shortages costing the palm oil sector RM7.9 billion annually and healthcare and IT sectors struggling to meet demand, Afghan professionals offer a ready solution (The Edge Malaysia, 2025). A 2019 study estimated that granting refugees work rights could add RM3 billion to Malaysia’s GDP and create 4,000 jobs for locals (Todd et al., 2019). An Afghan engineer shared, “I designed infrastructure in Afghanistan, but here I’m a labourer due to unrecognised qualifications” (P1, 2024). A refugee doctor echoed, “I could serve Malaysia’s healthcare system, but I’m stuck in a factory” (P4, 2024). Formal employment would boost productivity, increase tax revenues, and reduce NGO dependency, redirecting funds to training programs (NGO1, 2024).


Social and Community Benefits

LIPs foster social cohesion by bridging divides between refugees and locals. Community engagement initiatives, such as cultural festivals, have reduced prejudice in Turkey, where Syrian refugees’ contributions shifted public perceptions (Demirci & Kırdar, 2021). A UNHCR representative noted, “Joint initiatives foster empathy and break stereotypes” (NGO2, 2024). The Afghan community leader added, “Our language exchanges and festivals could reach more locals with support” (P5, 2024). By showcasing refugees as contributors, LIPs align with Malaysia’s Shared Prosperity Vision 2030, countering xenophobia and promoting unity. These initiatives are especially critical in urban areas like Kuala Lumpur, where social fragmentation and misinformation are more prevalent, and where public visibility of refugee contributions can catalyse positive shifts in public perception.


International and Policy Implications

Implementing LIPs could position Malaysia as a regional leader in migration policy. As a non-signatory to the 1951 Refugee Convention, Malaysia’s innovative approach would set a global precedent, attracting support from international bodies like the Global Compact for Refugees (Adamson & Tsourapas, 2019). A Ministry of Human Resources official stated, “Phased LIPs targeting healthcare and tech could resolve labour shortages while proving efficacy” (POL1, 2024). Turkey’s sectoral permits and Germany’s training programs demonstrate how tailored LIPs enhance economic resilience and social inclusion, offering models for Malaysia (Demirci & Kırdar, 2021; Bevelander, 2016). Such policies could strengthen Malaysia’s diplomatic ties and global influence. Malaysia’s leadership in Southeast Asia on refugee governance could also enhance its leverage in global platforms like the ASEAN Intergovernmental Commission on Human Rights (AICHR) and future Global Refugee Forum commitments.


Barriers to Integration

Legal, social, and logistical barriers hinder integration. The Immigration Act 1959/63 classifies refugees as illegal migrants, denying them work rights and exposing them to exploitation (Todd et al., 2019). A Ministry of Home Affairs official explained, “Without a legal distinction for refugees, protective policies are difficult” (POL2, 2024). Public misconceptions, with 47% of Malaysians viewing migrants as economic burdens, fuel resistance (ILO, 2020). An Afghan IT professional shared, “I’m trained in cybersecurity but work as a waiter” (P2, 2024). Unrecognised qualifications and housing in remote areas further exacerbate underemployment, as noted by a refugee leader: “Transport costs make job centres inaccessible” (P5, 2024). Germany’s credential recognition systems offer a viable solution (Bevelander, 2016).


Policy Recommendations

To harness the potential of high-skilled Afghan refugees, Malaysia should implement a comprehensive LIP framework, drawing on stakeholder insights and international models. The following recommendations provide a roadmap for sustainable integration:

  1. Sector-Specific Work Permits: Introduce temporary, conditional work permits for UNHCR-registered Afghan refugees in high-demand sectors like healthcare, IT, and construction. These permits, valid for 1-2 years and renewable based on labour market needs, should be tied to sector-specific contracts and skill certification programs. Oversight committees, comprising representatives from the Ministry of Human Resources, the Ministry of Home Affairs, UNHCR, and NGOs, would monitor compliance, prevent misuse, and ensure alignment with national priorities. Turkey’s sectoral permit system, which filled labour gaps in agriculture and manufacturing, serves as a model (Demirci & Kırdar, 2021).

  2. National Skills Validation Framework: Establish a robust framework to verify and align refugee credentials with Malaysian standards, in partnership with professional associations, universities, and international bodies like the ILO. Key components include credential verification through international databases, skills assessments via practical and theoretical exams, and fast-track certification courses for fields like engineering and healthcare. Canada’s bridging programs, which enable refugees to meet local licensing requirements, offer a blueprint (Desiderio, 2016). Financial aid and language support should ensure accessibility, addressing refugees’ logistical constraints. A Beyond Borders Malaysia representative emphasised, “Credential validation would unlock refugees’ potential” (NGO1, 2024). Regular evaluations of employment outcomes would refine the framework, ensuring alignment with market demands.

  3. Public-Private Partnerships (PPPs): Foster collaborations between government, businesses, and NGOs to create sustainable job opportunities. Businesses in high-demand sectors should be incentivised with tax credits, subsidies for training programs, and public recognition for hiring refugees, as successfully implemented in Sweden (NGO1, 2024). NGOs can facilitate job matching, provide mentorship, and conduct awareness campaigns to counter misconceptions, as noted by a UNHCR representative: “NGOs bridge refugees and employers” (NGO2, 2024). Germany’s Jobstarter Plus program, linking refugees with SMEs, demonstrates PPP efficacy (Bevelander, 2016). Long-term partnerships, institutionalised within national frameworks, would ensure sustainability, with data collection on economic impacts to build public support.

  4. Kuala Lumpur Pilot Programme: Launch a pilot LIP in Kuala Lumpur, leveraging its economic vibrancy, diverse workforce, and proximity to stakeholders like the Ministry of Human Resources and UNHCR. The pilot would test sector-specific permits, credential validation, and PPPs, focusing on 100-200 high-skilled Afghan refugees in healthcare and IT. Kuala Lumpur’s infrastructure, including vocational training centres and professional associations, supports upskilling and certification. The Afghan community leader noted, “The capital’s resources make it ideal for a trial” (P5, 2024). A monitoring system that tracks employment rates and community feedback would refine policies for nationwide expansion to cities like Penang and Johor Bahru. Success could attract international funding, as seen in Colombia’s refugee integration initiatives (World Bank, 2018).


High-skilled Afghan refugees are a latent asset for Malaysia, capable of addressing labour shortages, boosting economic growth, and fostering social cohesion. A Labour Integration Programme, grounded in sector-specific permits, credential validation, public-private partnerships, and a Kuala Lumpur pilot, offers a pragmatic path to integrate these professionals while preparing them for resettlement. By overcoming legal, social, and logistical barriers, Malaysia can align humanitarian and economic goals, drawing on global models like Turkey and Germany (Demirci & Kırdar, 2021; Bevelander, 2016). This bold approach would position Malaysia as a Southeast Asian pioneer in refugee governance, transforming the refugee crisis into an opportunity for shared prosperity. Future research should evaluate pilot outcomes and explore scalability to other refugee groups, ensuring inclusive policies that benefit all stakeholders. 

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