EMPOWERMENT OF INDONESIAN WORKERS IN MALAYSIA FOR SUSTAINABLE MSMES THROUGH STRENGTHENING HUMAN RESOURCE MANAGEMENT

Abstract

This study examines the empowerment of Indonesian migrant workers (TKI) in Malaysia through the strengthening of human resource management (HRM) and entrepreneurial skills to promote sustainable economic development. The primary objective is to build the capacity of TKI to transition from low-wage employment into owning and managing resilient micro, small, and medium enterprises (MSMEs). Utilizing a participatory approach, the program incorporated baseline assessments, tailored HRM and entrepreneurship training modules, and the establishment of peer mentoring networks supported by digital platforms. The initiative equipped participants with practical competencies in organizational leadership, financial literacy, and business planning, while also providing simplified HR tools to support daily operations. Outcomes of the program include improved business management practices, enhanced market access, and the initiation of new supplier partnerships by several migrant-led MSMEs. Additionally, the project fostered cross-border collaboration and offered meaningful experiential learning for university students engaged in training delivery, data collection, and community mentoring, aligning with Indonesia’s MBKM framework. Overall, this study underscores the significance of structured HRM capacity building combined with entrepreneurial support in enhancing the economic resilience and social mobility of migrant communities. It highlights the need for sustained mentorship, supportive policy environments, and strengthened networks to ensure the long-term success of migrant-owned businesses in a competitive market landscape.