"There will not be one, let alone 1.5 million new foreign workers coming into our country,"Deputy Prime Minister Ahmad Zahid Hamidi said.
Ahmad Zahid, also the country's home minister, said employers who want to hire foreign workers should recruit from among foreign employees already in Malaysia.
The move comes after widespread criticism of its decision to bring in 1.5 million Bangladeshis to work in Malaysia, which relies heavily on foreign workers from India, Indonesia and Bangladesh to help out in manufacturing and construction sectors.
"Employers who need workers will have to apply to legalise existing foreigners in the country without work permits or whose permits have expired," the minister told reporters.
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Ahmad Zahid said employers had until June 30 to legalise such foreign workers.
"The Government is bringing forward the deadline from December 31, because employers continuously ignore the chances given to them," he was quoted as saying in the local media.
"Instead, the government is criticised and pressured. If they can't hire anyone, they should just get the Malaysian Employers Federation, Federation of Malaysian Manufacturers and Malaysian Trade Union Congress to help them find locals to do the job," he said sarcastically.
"We will be pushing for those found guilty of trafficking and harbouring illegal workers to be caned.
"Right now, they are not afraid because they think they can get away by paying a fine but that will not be the case anymore," he said.
However, the decision, which was made at a Cabinet meeting yesterday, would not involve the domestic help or the maid sector.