Malaysia plans to recruit 100,000 male Pakistanis to relieve an acute labour shortage caused by a crackdown that sent hundreds of thousands of illegal workers fleeing, reports said today.

The government's decision came amid fears that the labour crunch, which led to industry losses running into hundreds of millions of ringgit, could further aggravate a slowdown in economic growth this year.

Home Affairs Minister Azmi Khalid was quoted by The Star as saying the government had picked Pakistan as a source for foreign labour because it has extensive experience in providing workers to foreign countries and managing them abroad via its Overseas Employment Corp (OEC).

"We have asked Pakistan to compile a list of suitable workers for all sectors in Malaysia. The OEC has a complete database on new workers entering the job market as well as workers returning from overseas," he said.

The Pakistanis will be allowed to work in all sectors including construction, manufacturing and services, he said.

The New Straits Times said the cabinet has been informed that about 200,000 workers were needed in the manufacturing sector, 150,000 in construction, 50,000 in plantations and 20,000 in the services sector.

Special cabinet meeting

A special cabinet meeting is expected to be held March 24 to discuss the issue, Azmi said.

The labour shortage follows an exodus during a three-month amnesty programme which ended on March 1 of nearly 400,000 illegal immigrants, mostly from Indonesia but also from the Philippines, Burma, Bangladesh, India and Sri Lanka.

A similar number are believed to remain in the country, but many are in hiding as the authorities are hunting them down, and dozens have been sentenced to prison terms and whipping.

The government had proposed that the Indonesians could return to work here legally once they have been processed in their own country, but has complained of delays in the system. Indonesians are preferred by Malaysia employers, partly because they speak the same language as Malaysians.