Think tank: Refugees could contribute over RM3b to GDP by 2024

Refugees could potentially contribute over RM3 billion each year to the nation’s GDP by 2024 if they were given the right to work in Malaysia.

Institute for Democracy and Economic Affairs (Ideas) researcher Wan Ya Shin (photo), who was one of the authors of the report, "The Economic Impact of Granting Refugees in Malaysia the Right to Work", also said this number could rise to RM6.5 billion per year by 2040 if the refugees were granted access to education on par with locals.

“Granting refugees in Malaysia the right to work will have a positive impact on the economy and public finances," she said in a forum titled "Refugees and the right to work and education" in Kuala Lumpur today.

“We estimate that if refugees are given the right to work, their contribution to the annual GDP would increase by over RM3 billion by 2024 through higher spending."

She added that in the long term, investment in education for refugees alongside the local population would see substantial dividends for the country.

“We estimate that under a scenario where refugees are granted access to education on par with locals, their contributions to the GDP could increase to over RM6.5 billion each year by 2040.” 

Similarly, if refugees were given the right to work, they could potentially contribute over RM50 million in taxes each year by 2024.

If they were granted access to education, this number would increase to over RM250 million by 2040, she said, adding that this would depend on policy decisions.

The government needs to take practical steps to implement its manifesto promise to provide refugees with the right to work and achieve the benefits mentioned earlier, Wan said.

“This will ensure that they can make the best use of their skills and improve their productivity,” she said.

The government should also minimise the cost of hiring and support refugees’ access to healthcare, she said.

“In the longer term, the government should find ways to improve refugees’ access to education to maximise the economic contribution that refugees can make to Malaysia,” she said.

Wan also assured that giving refugees the right to work does not mean they will be taking jobs away from Malaysians.

“Immigrant workers complement the majority of Malaysian workers. They do not replace Malaysian workers,” she said.

However, she said Malaysian workers between the age of 50 and 64 with no formal or at most primary education will see no benefit from the presence of migrant workers.

The Pakatan Harapan government had pledged in its GE14 manifesto to ratify the 1951 International Convention on Refugees so that refugees who escape from war-torn countries and arrive in Malaysia are given proper assistance.

Human Resources Minister M Kula Segaran had also said refugees should be given the right to work in Malaysia.

Last November, he said a cabinet decision would soon be made over the right of refugees to work.

Human rights group Tenaganita had urged Putrajaya to follow in Bangladesh’s footsteps and allow refugee children to receive a formal education. - Mkini