The Seventh Malaysia Plan (1996-2000) projects continued growth in one of East Asia's miracle economies, led manufactured exports produced with the help of foreign workers. In 1995, the Malaysian government offered incentives to promote key industries such as micro-electronics, automotive, aerospace, automated manufacturing, bio-tech and information technology, in line with Malaysia's "Vision 2020" goal of becoming a developed country in 2020.

Malaysia's economy grew at a rate of 9.5 percent in 1995, and is projected to expand by over eight percent in 1996.

Malaysia has an estimated 1.2 to 1.7 million foreign workers, with perhaps half having legal status. A Malaysian youth group in August approved a resolution calling for a law that would "prohibit foreign workers, especially Bangladeshis, from marrying Malaysian women." The Deputy Human Resources Minister urged employers to police the hostels that house especially female migrant workers, since many allegedly moonlight as prostitutes.

Malaysia has no minimum wage legislation, so workers frequently move from job to job in search of higher pay, better benefits, or more amenable supervisors. As rural Malays migrate to cities for manufacturing jobs, many find that they cannot afford housing. A low-cost house has a selling price under 25,000 ringgits (US $10,000), and 500 to 700 square feet. However, manufacturing wages are typically 450 ringgits (US $180) per month, plus additional overtime pay of another 200 ringgits (US$ 80) per month.

High housing prices and low salaries encourage many internal migrants and foreign workers to "squat," either by building their own accommodations, or by putting large numbers of residents in one house.


M. Sahibullah, "Ensure foreign workers obey the law," New Straits Times August 29, 1996. Gwen Benjamin, "Malaysia seeks developed statushood, spurns cheap-labour industries," Deutsche Presse-Agentur, August 9, 1996. " Women advised not to fall for foreign workers," New Straits Times August 2, 1996.