KUALA LUMPUR, Dec 4 (Bernama) -- Bursa Malaysia rallied to close broadly higher on Wednesday amid strong buying interests mainly in utility and technology stocks, with the benchmark index gaining 0.44 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 7.13 points to 1,614.09 from Tuesday’s close of 1,606.96. The index opened marginally higher at 1,606.97 and moved between 1,606.53 and 1,616.03 throughout the day. Advancers thumped decliners 727 to 381 on the broader market, with 522 counters unchanged, 781 untraded and 10 suspended. Turnover advanced to 3.60 billion units valued at RM3.30 billion versus 3.32 billion units valued at RM3.30 billion on Tuesday.
President-elect Donald Trump’s stringent immigration policy is expected to have significant economic impacts, ranging from potential GDP loss to sectoral labor shortages. His plan includes curbing illegal immigration, tightening border security, and restricting immigration from specific countries, with Tom Homan appointed as "border czar" to lead these initiatives.
Economic Impact Highlights:
GDP Decline:
- Research by the American Immigration Council estimates the policy could reduce US GDP by $1.1 trillion to $1.7 trillion.
- Morgan Stanley’s 2025 outlook predicts GDP growth slowing from 2.4% in 2024 to 1.9% in 2025, and 1.3% in 2026, citing immigration policies and elevated tariffs.
Sector-Specific Fallout:
- Industries reliant on immigrant labor, such as agriculture, landscaping, construction, and hospitality, face potential labor shortages.
- Goldman Sachs highlights that undocumented workers make up 4.4% of the workforce, with higher concentrations in:
- Landscaping and private home services: 20%
- Crop agriculture: 17%
- Food processing: 15%
- Construction: 13%
Rising Costs for Businesses:
- Mass deportations could force companies to raise wages, especially in low-wage, labor-intensive roles often filled by undocumented workers.
- Undocumented workers earn roughly 20% less per hour than U.S.-born legal counterparts, increasing cost burdens for employers.
Private Prison Surge:
Since Trump’s election, private prison companies like The GEO Group Inc and CoreCivic, Inc. have surged by 97.6% and 67.8%, respectively, due to plans for massive detention facilities for undocumented immigrants.
Tech Sector Impact:
- The tech industry, which employs many highly skilled legal immigrants, could face challenges as Trump’s previous policies made obtaining and renewing visas for high-skilled workers more difficult.
Labor and Policy Trade-Offs:
While Trump's policies aim to enhance national security and protect American jobs, the economic trade-offs include:
- Reduced labor availability in key industries.
- Higher wages and costs for businesses.
- Slower GDP growth and potential disruptions in supply chains reliant on immigrant labor.
As immigrants comprise 13.7% of the U.S. population (2023), these policies could reshape the labor market, with broad implications for economic growth and inflation.
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