Recently, a friend in the renovation industry shared a worrying situation:
One of his skilled workers decided to leave and join another company. Overnight, he found himself short‑handed, struggling to keep up with installation schedules.
Another friend, who handles tiling projects, complained about the same issue — he couldn’t find enough workers to install tiles, even after contacting multiple subcontractors.
These are not isolated incidents. Across Malaysia’s renovation sector, more and more contractors are saying the same thing:
“There’s not enough manpower.”
“Hard to find workers.”
“Foreign workers are not coming.”
The industry is feeling the pressure, and here’s why.
Why Is Malaysia’s Renovation Industry Facing a Worker Shortage?
1. Heavy Reliance on Foreign Workers
Renovation work in Malaysia—tiling, plaster ceiling, carpentry, wiring, plumbing, wet works—is traditionally done by workers from:
- Indonesia
- Bangladesh
- Nepal
- Myanmar
- India
Local Malaysians generally avoid these jobs due to:
- Tough physical labor
- Long working hours
- Lower starting pay
- Lack of career progression
This makes the industry highly dependent on foreign manpower.
2. Foreign Worker Approval Is Getting Stricter
Bringing in foreign workers now involves:
- Quota restrictions
- Long approval processes
- Tightened requirements
- Higher government fees
- More compliance under immigration and labor laws
This discourages many smaller contractors who lack resources to go through the process.
3. Increased Costs for Hiring Foreign Workers
Employers must now cover:
- Levy fees
- Insurance
- Medical checkups (FOMEMA)
- Accommodation standards
- Transportation
- Legal documentation
- Recruitment fees
The total cost to bring in one foreign worker can exceed RM7,000–RM10,000, making it harder for small renovation companies.
4. Younger Malaysians Prefer White‑Collar Jobs
The younger generation is moving toward:
- Office work
- Technology jobs
- Gig‑based online work
- Higher‑education careers
Very few want to enter construction or renovation trades.
This leaves almost zero new blood entering the industry.
5. High Competition Among Contractors
When one worker leaves, another contractor immediately hires them. Skilled workers (tilers, carpenters, installers) are in high demand, which causes:
- Job hopping
- Higher salary expectations
- Talent instability
Your friend’s experience is becoming very common — losing even one worker disrupts entire project timelines.
What Can Renovation Companies Do? Practical Suggestions
A well‑known business coach once said:
“You can’t always control the labor market, but you can control how your company treats its workers.”
Here are meaningful steps that renovation industry players can take:
1. Treat Existing Workers Well
Workers in renovation are not easily replaceable.
A simple act of appreciation can go a long way:
- Respect
- Safe working environment
- On‑time payment
- Reasonable working hours
- Occasional meal support or allowances
Loyal workers stay when they feel valued.
2. Provide Proper Training
Many workers drop out because they feel stagnant.
Train them in:
- New installation techniques
- Safety practices
- Modern equipment
- Communication & customer service
Skilled workers become assets, not expenses.
3. Offer Better Benefits
To retain talent:
- Performance bonuses
- Attendance incentives
- Accommodation support
- Paid leave
- Medical coverage
Even simple benefits can motivate long‑term commitment.
4. Build a Career Path for Local Workers
To attract locals, the industry needs to show:
- Clear income progression
- Opportunities to become site supervisors or team leaders
- Earning potential beyond typical entry-level jobs
- Certifications that boost their skills
When people see a future, they will stay.
5. Use Technology to Improve Efficiency
Where manpower is limited:
- Use laser measurement tools
- Use prefabricated materials
- Adopt digital project planning
- Use simpler installation systems
This reduces dependency on large teams.
⭐ Conclusion: The Industry Must Evolve to Survive
The renovation industry in Malaysia is at a turning point.
The rely‑on‑foreign‑workers system is no longer stable, and the shortage is affecting timelines, costs, and business sustainability.
While waiting for policy improvements or easier foreign worker recruitment is not enough, renovation players can take charge by:
- Strengthening their existing teams
- Treating workers with respect
- Creating better opportunities for Malaysians
- Training workers to improve skills
- Building loyalty rather than chasing replacements
A stable team is the backbone of every successful renovation business.