4.2
Workforce issues
Half of the SBSR workforce in Malaysia had been laid off, from 31,000 in 2011 to 15,000 in
2016. While other countries (e.g. South Korea, China and Japan) have also been facing the
same situation, this is detrimental to current efforts on SBSR human capital development,
particularly for the SBSR 2020 goal of providing 55,000 jobs in the industry 10 .
Source: MIGHT
Foreign workers make up a fifth of the SBSR workforce in the Peninsular Malaysia, while they
make up almost half of the SBSR workforce in Sabah and Sarawak. Indonesia, China and the
Philippines are the major sources of foreign SBSR employees in Malaysia.
Local shipyards depend on these foreign workers as they tend to demand lower salaries than
their local counterparts. Particularly when designing for new and conversion vessels, foreign
designers are always favoured. Local designers are rarely given the opportunity, regardless of
their capabilities.
10
Malaysian Shipbuilding/Ship Repair Industry Report 2017/2018
Environmental Scan – Maritime (Shipbuilding and Ship Repair -SBSR) Sector
13