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Chinese The Johor-Singapore Special Economic Zone (JS-SEZ) is projected to become a major hub for industrial and economic growth, with a strong demand for both skilled and semi-skilled workers. As industries expand and new businesses are set up, foreign workers will play an important role in supporting the development of the region. Providing proper accommodation for foreign workers is essential for their well-being, productivity, and Malaysia’s reputation.
Ensures Health, Safety, and Productivity
Clean and organized accommodation protects workers from illness, accidents, and disease outbreaks. Comfortable living spaces also improve rest and mental well-being. As a result, companies that offer quality accommodation attract skilled workers and improve employee loyalty. Workers who feel valued tend to stay longer and show greater commitment.
According to The Vibes, Human Resources Minister V. Sivakumar urged employers to provide humane housing in January 2023. He warned against conditions resembling “a buffalo or cattle pen.” He stressed that Malaysia’s treatment of foreign workers faces international scrutiny, reminding employers that “We must treat them better… we are also being watched internationally.”
Supports Legal Compliance and Social Harmony
Meeting housing standards helps employers avoid fines, legal issues, and reputational damage. Poor living conditions often lead to social tensions and public concern. On the other hand, well-managed accommodations promote smoother integration between foreign workers and local communities.
Despite these warnings, violations remain common. In January 2024, authorities discovered a Sungai Rambai furniture factory housing 66 foreign workers in unsafe conditions without proper certification. Such incidents highlight the urgent need for employers to follow housing regulations.
Boosts Retention and Employer Reputation
Neglecting housing standards also harms Malaysia’s global reputation. Malaysia faced a setback in 2021 when the U.S. Department of State downgraded the country to Tier 3 in the Trafficking in Persons (TIP) Report due to insufficient efforts in combating human trafficking. The report highlighted weak victim protection, inadequate law enforcement, and ongoing worker exploitation. However, in 2023, Malaysia regained its position on the Tier 2 list after demonstrating improved efforts, such as enhanced victim protection measures, increased investigations, and stricter enforcement actions. Despite this progress, the report urged Malaysia to continue strengthening its anti-trafficking initiatives to fully meet the required standards.
The Integrated Labor Concentration Zone (ICLQ) in Pasir Gudang, developed by SJ Holdings, managed by CSM Solution, will serve as a model for foreign worker housing developments across Malaysia. This initiative will ensure the provision of safe, comfortable and well-managed housing for workers, further supporting their well-being and productivity.