For the first time after several years of rapid growth, the number of non-citizens in Malaysia is showing signs of shrinking. According to the International Migration Statistics, Malaysia 2025 report published by the Department of Statistics Malaysia (DOSM), the total non-citizen population is estimated to be 3.38 million people in 2025.
Although the percentage decrease is only around 0.1 points, what is more significant is the annual growth rate declining to -0.5%, compared to a surge of 13.6% in 2024. This change indicates that the influx of foreign workers is not only slowing down, but is also starting to decrease, in line with the process of adjusting the labor market after the post-pandemic recovery period.
Median Age 29.2 Years, Migrating for Work
From a demographic perspective, DOSM statistics show a clear picture of the profile of the non-citizen population in Malaysia. Almost 80% are in the working age group (15 to 64 years), with a median age of 29.2 years, while the sex ratio is 228 males for every 100 females.
This pattern confirms that the migration is work migration, not family or welfare migration. In fact, the dependency ratio remains low at 25.2, indicating that this group is not putting a major strain on the country's social system.
The decline in the number of non-citizens reflects the ongoing economic restructuring, where the need for a workforce is shifting from quantity to efficiency and productivity. In many sectors, employers are now more cautious about adding new employees, in line with rising labour costs and the use of technology.
Sabah Top Concentration of Foreign Workers
In terms of state distribution, the non-citizen population is clearly concentrated in areas with high economic activity. Sabah (1.04 million) remains the state with the highest number, followed by Selangor (0.73 million), Johor, the Federal Territory of Kuala Lumpur and Penang.
The majority of the non-citizen population in Malaysia comes from Southeast and South Asian countries, and is concentrated in the plantation, construction, manufacturing and basic services sectors, sectors that have traditionally relied on foreign workers.
At the district level, areas such as Petaling, Sandakan, Ulu Langat, Johor Bahru and Klang emerged as the main focus, indicating that this migration is focused on locations offering job opportunities.
In the short term, some sectors may face a shortage of workers, particularly in dirty, dangerous and difficult (3D) jobs that are less popular with locals. This situation has the potential to increase business operating costs, thus forcing some employers to restructure operations or increase automation.
