Most Profitable Business Ideas – Manpower Supply
As a person has been working with a lot of SMEs since last two (2) decades, I regularly asked about business ideas and at the same time noticed the demand for manpower supply still increasing.
Despite, the large inflow of foreign workers, both legal and illegal studies indicate that 836 new full-time jobs and 169 part-time jobs are created for Malaysian workers for every 1,000 new foreigners that enter a given sector in a given state.
This can be a rather surprising result since most people have the perception that foreigners replace Malaysian workers and hence lead to job losses rather than job creation for Malaysians.
However, foreigners also generate jobs for Malaysians by reducing the costs of production, making Malaysian firms cheaper and more competitive in the global market, allowing them to expand and consequently increasing their demand for Malaysian workers.
Thus, results show that the ultimate outcome for Malaysians is job creation
Although Malaysian Human Resources Ministry, says there are only some 2.1 million registered migrant workers, the Malaysian Employers Federation (MEF) estimate is even more alarming, putting the total number of legal and illegal foreign workers at six million. Simply means one of a fifth of Malaysia population is foreigners. Hopefully, this figure provides some instinct on possibilities exploring further the business idea.
As more and more foreign workers enter manpower supply sectors new jobs are being created in Malaysia.
Profitable Manpower Supply Segment
High economic growth in the late 1980s created a demand for low-skilled foreign workers in the labour-intensive segments of the manufacturing sector, such as electronics, textiles, non-metallic and mineral industries.
In response, since 1991, the Government allowed manufacturing firms to employ foreign workers if they were unable to find local workers
Over the last 2 months, I had met few manpower suppliers since been receiving Whatsapp messages from employers seeking manpower supply for :
- Factory, complex, office & building contract maintenance
- Cleaning – Detail cleaning, Clean room cleaning
- High-pressure water cleaning, Carpet Cleaning & shampooing
- Waste disposal & Sewerage
- Cleaning consolation on cleaning management
- Manpower Supply
- Grass cutting Maintenance
- Landscape work – Soft Landscape
- Loading & unloading containers / lorries
- Warehouse stock controller
- Forklift driver
- And much more
How much Manpower Suppliers can make?
This could be the main reason why you as reader land up to this page. If you’re in business, may I invite you to add your business listing with us?
Now, let us look into a few simple calculations as I gathered from manpower suppliers :
Cost of stuffing and unstuffing containers: RM 80 / 20’ft container (lowest industry range)
No of containers per 8 hours work: 10 x 20’ft container
No of workers: 4 pax
Workers salary per day/ 8 working hours: RM 60/pax
Other cost : Transport of workers / Telephone/Entertainment – RM 100 /day
Total gross income : RM 80 x 10 = RM 800.00
Total manpower cost : 4 x RM 100 = RM 400.00 ( taking highest range for calculation purpose)
Other cost = RM 100.00
Net profit = RM 300.00
If no of working days is only 20 days per month, a specialized manpower supplier should be earning a gross of RM6,000 per month. This income is much higher than some highly qualified corporate executives in Malaysia.
Should your able to establish well and get trained more locally available manpower and establish good working relationship with business owners and managers surely you able to earn an enormous profit.
Potential Challenges by Manpower supplier
- The greatest challenges faced by any manpower supply firm are retaining skilled labour within your control since they always been lobbied by other manpower suppliers offering higher daily wages.
- As more and more Malaysian been offered opportunities to upgrade themselves through skills Malaysia and Diploma Kemahiran Malaysia, retaining your good workers for labourious work is not adviseable.
- Cash flow problems – this is a usual trend faced by the majority of Malaysian MSMEs. You need to be vigilant in preparing proper documents and on time collections. Some firms offering jobs might ask up to 60 days payment, which I recommend to avoid it unless you have the capital backup.
- Coping up with new requirements such as health and safety requirements your customers moved up the value chain. Be continuously in touch with your key contact points to understand and prepare yourself for change on the card.
In this write-up, we only look into one sub sector, the demand for Malaysian Manpower supply is even iincreasing inother economic sectors such as construction, agriculture, hospitality, oil & gas, port, services and others.