Variations in Foreign Labor Policies: A Comparative Analysis of Malaysia and Singapore

This comparative study delves into the foreign labor policies of Malaysia and Singapore, two prominent host countries for foreign workers in Southeast Asia. Despite their historical, cultural, and developmental similarities, these nations exhibit variations in the efficiency of their foreign labor policies. Employing the Most Similar System Design (MSSD) approach, this research explores three key explanatory variables: economic factors related to industrial structures, differences in governance systems, and cultural backgrounds. The study finds that these factors significantly shape the formulation and effectiveness of foreign labor policies. The analysis reveals that Singapore outperforms Malaysia in leveraging foreign worker policies to drive economic transformation, enhance competitiveness, and manage the impact of foreign labor. Factors contributing to this discrepancy include the divergence in industrial structures, variations in governance systems, and the influence of cultural backgrounds. Singapore's unitary system, focus on high-skilled foreign workers, and non-racial political landscape contribute to its policy efficiency, while Malaysia's federal structure, lowerskilled labor demand, and communal politics impact its policy effectiveness.