On Friday, the government suspended the recruitment of all foreign workers, with a plan to also review their foreign employment policies.
The Malaysian Government's priority right now is to provide employment opportunities to its local workers.
Announcing the decision, Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi said the suspension would enable the Government to reconsider the revised two-tier levy for foreign workers.
"Further details on the decision to freeze foreign worker recruitment will be announced by the Government," the Human Resources Minister said.
Part of their plan is also enforcing measures for illegal or undocumented workers in Malaysia. Foreign workers without legal work documents or those who overstayed in the country will be arrested and deported back to their home country.
"Those existing foreign workers, especially whose working permits have expired or are without proper document, they are not allowed to work in Malaysia," Zahid said after a function to meet army personnel at Camp Muara Tuang.
However the Malaysian manufacturers are urging the government to clarify how long they are planning to freeze the hiring.
The Federation of Malaysian Manufacturers (FMM) hopes that the issue can be resolved soon to avoid deleterious effect on the economy.