NASSCOM Statement: Malaysian Government recruitment of workers from India ...
09/01/2008
As per media reports, the Malaysian Government has announced a ban on further recruitment of workers from India in the Information technology and financial services sectors among others, and added that the work permits of Indian workers in the country cur

NASSCOM is concerned about this development as it would have serious impact on operations of all IT companies in Malaysia. Further, it is likely to adversely affect investment into Malaysia from Indian and other multinational companies that have of late been looking at Malaysia as a potential outsourcing destination.

Globally, the information technology industry thrives on free trade. It is a global industry, with global markets and an increasingly global workforce, which does not have to tolerate racial and religious discrimination, or any other barriers to international trade. Such developments send very strong negative signals to the investing countries and given today's scenario, where a number of countries are available as options to potential investors, it is possible that other locations will become more attractive to investors.

India and Malaysia have strong cultural bonds and have enjoyed a close political relationship. There is an expanding trade relationship even in the information technology sector. We are hopeful that this issue will be resolved between both Governments at the earliest, so that the trade and economic relationship between the two countries can continue to grow and flower.