The premier said businessmen should consider the long- term effects of their reliance on foreign workers on the country's competitiveness.
"I have heard that businesses need more foreign workers to increase productivity, which will bring more revenue.
"But, I would like you (businessmen) to be less dependent on foreign workers by adopting new technology to improve productivity," he said in Kuantan.
Najib said companies should also look into using robotics and automation systems in place of labour-intensive work to raise productivity.
Malaysia heavily relies on foreign labour in several fields like construction, plantations, restaurants.
India, Indonesia, Sri Lanka, Cambodia and Bangladesh are some of the key countries it sources its labour.