There has been an increase in the global mobility of labor, and political and social imperatives will continue to compel nations to impose restrictions on international migration. The paper examines Malaysia's experience in regulating the inflow of foreign workers to facilitate its labor market adjustment process. The use of immigration policies to meet the competing objectives of unfettered growth and industrial upgrading has recorded mixed success. Immigration policies are necessary but insufficient. They must be complemented and supplemented by labor market development strategies to foster quality growth based upon “high path” structural transformation.
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