The economy would be greatly affected if the government continued to restrict the entry of foreign workers for the construction industry, local Tamil daily 'Tamil Nesan' quoted the minister as saying.
Although the government had asked employers to give preference to local workers, most still preferred foreign workers for their skill and loyalty, he said in a statement on Monday.
A large number of workers coming from India, Indonesia, Pakistan and Bangladesh are preferred in Malaysia's construction, restaurant, plantation sectors.
However, the country decided to impose a ban on their further recruitments after the recent financial crisis which saw many locals lose their jobs.