Sabah is it a state built by local or foreign perspiration?

Ujin Matjin and Caroline Geetha B. Arokiadasan (2020) Sabah is it a state built by local or foreign perspiration? Penerbit UMS, Kota Kinabalu, Sabah. ISBN 978-96-7-296223-6

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Abstract

Sabah has been the recipient of countless migrants for centuries. The most recent of these are largely Indonesians and Filipinos who come for economic reasons. The current economic turmoil has affected the capacity of the state to provide employment to both local and foreign workers. The result revealed that no doubt Sabah is working towards reducing its dependence on foreign workers. Sabah will likely continue to depend on migrant workers in the short and immediate term. The Sabah experience suggests that a more systematic approach is needed to regulate the flow of migrant labour in the region to reduce the dependence on foreign workers. Therefore, this study aims to determine whether Sabah state economic growth depends on the effort by foreign or local labour. The theory of production was used as the underlying theory. All variables (GDP, local labour, foreign labour, technology and capital) were converted into total factor productivity. A quantitative approach was adopted. It begins with a descriptive analysis where the mean, median, standard deviation and the normality of the data was tested. This was followed by the ordinary least square estimation (OLS). The OLS confirmed the existence of autocorrelation since it involved a time series data from 1987 to 2019. ADF and PP tests were adopted to further investigate at what level were the data stationary. It confirmed the data were stationary at first difference. The ARDL test was used to determine the long-run relationship and the causality effect between the variables. The analysis ended with a diagnostic test for serial LM correlation, heteroscedasticity, normality and multicollinearity. The findings revealed that the long-run relationship between the variables and foreign labour does influence the economic growth of Sabah in the long run and short run. Therefore, it confirms that Sabah's economic growth is foreign labour dependent.

Item Type:	Book
Keyword:	Foreign labour, Migrant workers, Local labour, Economic growth, Sabah economy, Labour dependency, Production theory
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28-9999 Industries. Land use. Labor > HD4801-8943 Labor. Work. Working class > HD8045-8943 By region or country
Department:	FACULTY > Faculty of Business, Economics and Accounting
Depositing User:	DG MASNIAH AHMAD -
Date Deposited:	13 Oct 2025 15:58
Last Modified:	13 Oct 2025 15:58
URI:	https://eprints.ums.edu.my/id/eprint/45436

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