This paper reviews policies and laws governing migrant inflows and their presence in the Malaysian economy. This study finds that policy failures are basically built on the ad hoc management of in-migration, lack of enforcement of existing regulations and abusive practices of various stakeholders. Likewise, work and provision of basic rights for migrants under specific laws are found to be somewhat discriminatory and arbitrary. Hence, the immediate challenge for policy makers is to ensure effective management of migrant workers, beginning with a clear policy on recruitment, placement, monitoring and finally the return of migrant workers to their homeland. Furthermore, amendments to specific laws are needed to ensure that migrant workers are accorded equal labour standards and basic rights as those of locals.