A Novel Approach
The National Post has the skinny on how they handle illegal immigrants in Malaysia:

Tens of thousands of illegal immigrants descended on Malaysia's ports yesterday, looking for a ship back home to Indonesia and the Philippines to avoid tough new immigration laws.

Under harsh legislation that took effect yesterday, foreigners caught working without a permit in Malaysia could face fines of US$2,600, mandatory jail terms of five years and six lashes of a rattan cane.

Anyone who employs or houses an illegal migrant is subject to the same penalties.

...

Immigration laws introduced in March gave illegal immigrants an amnesty, which lasted until yesterday, to give them time to leave the country without fear of being arrested.

...

There are about 750,000 legal migrant workers, but anywhere between 600,000 and two million illegal immigrants as well.

Two-thirds of the illegal foreign workers are thought to be Indonesian. Most of the rest come from Bangladesh, India, Pakistan and the Philippines.

They frequently live outside the law in a constant game of hide and seek with the police after overstaying their work permits or entering Malaysia without them.

In the five years since Asia's economic meltdown in 1997, the demand for foreign workers has slowed, while unemployment in Malaysia has soared to its highest level in 10 years, about 3.7%.

With its small population and relatively prosperous economy, Malaysia has long been a magnet for people from its poorer neighbours.

Sounds familiar right? (Except that the illegal immigrants are actually leaving.) Well, hang on for the whining:

But some Malaysians are unhappy with the immigration crackdown. Many employers say they rely on the illegal immigrants to fill menial and low-paying jobs Malaysians refuse to do. Now, they say, the country's export-driven economy will suffer.

Indonesians have been the backbone of Malaysia's construction industry, accounting for up to 70% of the unskilled workers on job sites. Tens of thousands of Indians, Bangladeshis and Pakistanis also work as low-cost labour on rubber and tea plantations.

Large numbers of Filipinos have been attracted to Sabah, the Malaysian sector of the island of Borneo, which lies close to the southern Philippines, to work as domestic help.

The sudden expulsion of so many workers could destabilize Malaysia's neighbours, placing a strain on local governments and families that have relied on the money they sent home.

It's deja vu all over again.