Malaysia has banned the hiring of new foreign workers in factories, shops and other services.
The government said on Wednesday the move was to protect its citizens from unemployment during the economic downturn.
It has also told employers that if they want to cut back their workforce they must sack foreign staff first.
The BBC reports Malaysia is a leading Asian importer of labour, with more than two million foreign workers - mostly from Indonesia and other South East Asian countries.
The ban is indefinite and will affect the manufacturing and services sectors.
Employers have been told that foreigners already working in Malaysia will be allowed to remain until their contract expires or until they are laid off.
Exemptions may be given to those working in highly skilled service industries and factories.
Home Minister Syed Hamid Albar told the New Straits Times that
45,000 people were expected to be be laid off by the end of the month.
About 13,000 workers lost their jobs in the last quarter - over 75% were Malaysian.
