KUALA LUMPUR: One sector in Malaysia says it is bearing the brunt of the country’s ongoing foreign worker hiring freeze: The pervasive Indian Muslim restaurants, known colloquially as mamaks.
Two restaurant associations representing mamak and banana leaf eateries, the Malaysian Muslim Restaurant Operators Association (PRESMA) and the Malaysian Indian Restaurant Operators Association, told local media on Jan 22 that they were struggling with a shortage of 25,000 workers in the restaurant sector.
This prompted an appeal to the government to ease hiring restrictions and permit them to replace workers who have returned to their home countries.
“It’s quite critical already,” PRESMA deputy president Tahir Salam told CNA of the worker shortage, describing how some of these mamak eateries – which are usually open 24 hours – have had to scale back operating times and deploy workers in multiple roles, ranging from back of house to cashier and waiter.
When this was not forthcoming, one of the associations zeroed in on another possible solution. PRESMA told local newspaper Berita Harian on Feb 1 that it would be open to hiring registered Rohingya refugees to fill demand.
The Rohingya, a Muslim minority persecuted in Myanmar, comprise 60 per cent of the 192,000 refugees and asylum seekers registered with the United Nations Refugee Agency (UNHCR) in Malaysia.
“For our shortage and the problem we are facing, whoever can come in to do the job is acceptable. Refugees from Myanmar, Bosnia or whatever country also, we are willing to accept, but with proper documentation from the government so the government won’t give us any problems later on,” said Tahir.
If PRESMA’s proposal is allowed, observers told CNA the large number of Rohingya refugees in Malaysia represents a readymade pool of workers that could ease the manpower void in mamak restaurants.
However, questions remain of security and what such a policy could mean for the influx of refugees into the country.
Efforts to allow refugees formal employment have moved slowly over the years, with analysts previously telling CNA how such a sensitive policy could trigger backlash from locals who already perceive refugees as a security issue with taxpayers bearing the cost of managing and sheltering them.
Malaysia is not a signatory to the 1951 United Nations Refugee Convention and its related 1967 protocol, meaning refugees who hold a UNHCR card are only allowed to work in odd jobs or the informal sector.
The informal sector refers to economic activities of workers and entities which are in law or practice not covered by formal arrangements, according to the Department of Statistics Malaysia.
Refugees who hold more formal jobs often do so quietly, without attracting the attention of locals or authorities to avoid getting into trouble.
Federal Territories Minister Zaliha Mustafa said in a written reply to parliament last Wednesday (Feb 12) that the government is still “refining” details on how UNHCR-registered refugees can work legally in the country.
“(The policy) will be finalised once all refugees and asylum seekers in Malaysia have registered with the government,” she said.
Despite that, members of the Rohingya refugee community in Malaysia told CNA that some Rohingyas are already working in mamak restaurants, taking up daily-wage roles such as cleaning premises or cutting vegetables.
This is typical of the grey area that refugees occupy when working in Malaysia, with many fearing the possibility of arrest.
Supporters of the proposal to hire Rohingyas say it will help prop up the iconic mamak restaurant sector and keep prices low for tourists and the local middle-class who frequent these eateries, and allow authorities to better monitor refugees’ whereabouts.
Critics, however, argue that these refugees might not have the necessary skills and discipline to work the long hours required in mamak restaurants and give the sector a bad name given some locals’ unsavoury perceptions of the community.
A Rohingya refugee who has been in Malaysia since the 1990s and has worked in various roles in mamak restaurants told CNA that everyone is entitled to their opinion.
“When we stay here, we have to respect the law, the people of Malaysia and everything else,” said the 40-year-old, who only wanted to be known as Jo.
“Whether we will be eventually permitted to work formally, I will leave it to God. What is available for me, I am thankful. If there are better opportunities to work, thank God. Even if not, we cannot do anything.”
How the manpower shortage came about
PRESMA deputy president Tahir Salam said the manpower issues could be traced back to February 2022, when Malaysia lifted a COVID-19 freeze on recruiting foreign workers.
In 2023, the government launched a labour recalibration programme to regularise illegal foreign workers in the country before deciding how to fill a remaining quota of 400,000 foreign workers.
Authorities then abruptly brought forward by months a deadline for employers with unused quotas to bring foreign workers into the country, saying that the existing number was already nearing a government–set ceiling.
The move triggered a spike in foreign worker arrivals at the Kuala Lumpur International Airport as employers scrambled to meet the deadline, with tens of thousands more from Bangladesh reportedly missing out.
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Tahir, whose restaurant association represents more than 12,000 mamak eateries, said the foreign worker freeze has “created a lot of issues” for mamak eateries, especially as workers who started in 2022 during the post-pandemic recovery have completed their three-year contracts and insisted on returning home for good.
According to official statistics, Malaysia has 2.47 million documented foreign workers, hitting a cap of 15 per cent of the country’s total workforce, as of last December.
The freeze on applications to hire foreign workers will remain until at least the first quarter of this year, Home Minister Saifuddin Nasution Ismail was quoted as saying by Bernama.
Tahir pleaded for the government to reintroduce a “check-out memo” system that allowed one-for-one replacements of foreign workers who have left the country. These workers hail from countries like India, Bangladesh and Indonesia.
“Last time, when workers were coming in and searching for work, they would beg us to take them in. But now, it’s the other way around. We have to beg them not to leave the country, by giving them another RM50 (US$11) a month, or some other perks,” he said.
“We don’t want new workers. What we are asking is to at least open up the replacement programme again … The numbers will remain the same and we won’t have that shortage.”
Why Malaysians shun work in mamak restaurants
PRESMA deputy president Tahir Salam said mamak eateries are unable to hire locals as they could only offer a monthly salary of about RM1,900 with free food and lodging to keep prices low and still make a profit.
When the association tried setting up stalls at job fairs, there was zero interest from locals, he noted.
Malaysia HR Forum chief executive officer Arulkumar Singaraveloo highlighted a “stigma” among locals associated with working alongside migrant workers in the restaurant sector in a job perceived as “low in prestige”.
The forum provides information on the current human resource trends as well as training for HR professionals and organisations.
“Malaysians are generally uninterested in restaurant jobs due to the long working hours, often extending to six or even seven days a week, and the perception of low wages,” he told CNA.
Tahir said some locals use mamak eateries in Malaysia as a stepping stone to gain experience before crossing the Causeway to work in restaurants in Singapore, where the salaries are higher.
“We cannot be promising a salary of RM3,000 or RM4,000 to be comparable to Singapore,” he added.
“If we do that, we have to increase the price of roti canai from RM1.50 to RM5. Will that be acceptable to the people?”
According to Tahir, mamak eateries have even tried hiring vagrants off the streets, only to end up in a situation where these people steal valuables from legal foreign workers and run away after a few months.
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On Jan 23, Economy Minister Rafizi Ramli reportedly disagreed with calls by the restaurant associations to ease restrictions on the hiring of foreign workers, stressing that the government will continue to focus on reducing the nation’s reliance on low-skilled foreign labour.
In response to PRESMA’s proposal, Human Resources Minister Steven Sim said on Feb 9 that such suggestions must comply with the country’s policies and laws.
“Therefore, we need to assess whether our government has such a policy, whether our country and society are ready, and if employers are prepared to hire these workers,” he said as quoted by the New Straits Times.
CNA has reached out to Sim’s office for comment.
Allowing refugees formal employment would lead to a win-win situation, Tahir said, as it allows restaurants to get workers and the country to benefit from their economic contributions.
“The government should come up with a mechanism. They let the Rohingya people stay here, and then they are not allowed to work (formally). What is the point?” he said, citing the costs of sheltering them.
“Why not give them a special card or something, and then let them work in mamak shops? They are running away from shelters, working illegally and doing business here and there. Might as well make it legal.”
GOOD IDEA OR UNSUSTAINABLE?
Arulkumar Singaraveloo, chief executive officer of the Malaysia HR Forum, which trains human resource professionals and organisations, told CNA that the proposal to hire refugees could help alleviate the shortage of foreign workers in mamak restaurants.
It would be faster to process this already-present workforce, he said, as opposed to needing foreign workers to fulfil regulatory requirements from their source country and Malaysia before employment.
“Regarding cultural integration, there may be initial challenges in assimilating refugees into the workforce. However, these challenges are likely to be temporary, as they are already in Malaysia and have, to some extent, adapted to the local culture,” he said.
“Since refugees are already in the country, providing them with legal employment would not only support industries in need – such as construction, plantations, agriculture, manufacturing, and the food and beverage sector – but also offer these refugees means to survive.”
SME Association of Malaysia national president Chin Chee Seong, whose members are mainly in the services sector, told CNA he has not seen many complaints among members about a lack of foreign manpower.
Members in the manufacturing sector are actually scaling back manpower as business is not doing well, he said, while those in the restaurant sector have managed to penetrate the mid to high-end market and could therefore afford to hire locals in line with their classier image.
With that said, Chin acknowledged that hiring refugees to ease the foreign labour shortage is a “good idea”, provided that the process is stringent and selective, with guarantees that these refugees are willing to stay for the long term.
“The advantage is that if they have nowhere to go back to and are given a job, they will work hard here. They should be given proper documentation so that they don’t run away (and work in other jobs),” he said.
“That is where we have to ensure that there is enforcement to ensure that the (arrangement of) Rohingya working here will be safe for us.”
Despite that, a former PRESMA president disagreed with the proposal, pointing to complaints by locals that some Rohingya refugees are perceived to be creating enclaves in various parts of the country.
Jamarulkhan Kadir, who now runs a food manufacturing business, told CNA that the government should instead treat mamak restaurants as a sector critical to the economy and give them the leeway to hire more foreign workers despite the ongoing ban.
“Refugees are already roaming free in the country. They did not come here as workers. Why should we take them? Let us take the trained workers; those who know the industry,” he said.
“For restaurants, I don’t think refugees can suit us. I think now there are a lot of issues against them, especially the Myanmar refugees. They (are accused of becoming) a colony and all that; they gang up. So, these things will affect the industry.”
Malaysia HR Forum’s Singaraveloo cautioned that a shortage of workers in mamak eateries, if left unresolved, could “significantly disrupt” Malaysia’s food and beverage industry, alter everyday dining habits, and increase consumers’ cost of living.
“It may also expose deeper structural issues within the country’s labour market and immigration policies,” he said.
Singaraveloo warned that granting formal employment rights to refugees might encourage more to seek refuge in Malaysia, potentially straining national resources if not properly managed.
Another issue is uncertainty around how long they would be allowed to work in Malaysia, he said, noting that documented foreign workers are permitted a maximum stay of 13 years.
“Without a clear regulatory framework, the situation could escalate, similar to challenges faced by some Western nations,” Singaraveloo added, calling for a “long-term view” to ensure the sustainability of such a policy.
“To ensure this move is effective, a well-structured mechanism is essential to regulate refugee employment opportunities while maintaining control over labour market dynamics and migration patterns.”
FOREIGN WORKER ALTERNATIVES
Rohingya community leader Rafik Shah Mohd Ismail said allowing formal work for refugees will allow Malaysia to solve its foreign worker shortage and raise its profile on the international stage through an improved humanitarian stance on refugees.
“If you want to reduce foreign worker numbers in Malaysia, you need an alternative. If not, there will be problems for stakeholders like factories, industries and investors,” he told CNA.
Rafik Shah said the move will also allow authorities to issue proper documentation to refugees and monitor them more effectively, arguing that a lack of formal work leaves them vulnerable to being induced to take part in criminal activities.
Over the years, refugees in Malaysia have worked quietly in the farming, agriculture and restaurant sectors, he said, noting that Rohingya refugees are well-suited to mamak restaurants given the compatibility in culture and religion.
“There are also refugees from Arab restaurants who can work in Arab restaurants, while other ethnic refugees from Myanmar can fill shortages in Chinese restaurants, for example,” he said.
Rafik Shah said he understands there is a push at the federal government level to move towards allowing refugees formal employment but without a clear timeline on when a concrete policy could be enacted.
“I don’t want to blame anyone. We have to be thankful that refugees are still allowed to be here despite not being officially recognised,” he added.
Meanwhile, the Rohingya refugee Jo said he stopped working at mamak restaurants – where he earned about RM7 an hour doing everything from cooking to serving 12-hour shifts – about a decade ago.
He is now employed at a Malay restaurant, where the working hours are shorter with more free time, and the salary is enough for him to support his three children aged 14, 10 and six, he said.
Jo said he will only work at places where he can be accepted as a refugee trying to survive in Malaysia.
“If I can find work without disturbances from locals or employers, I will go ahead. If not, I will back off.”
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