Labour migration into Malaysia has increased rapidly in recent decades and this has affected Malaysia's government policy in managing migrants’ movement. Interestingly, Malaysia has attracted a high degree of unskilled labour, accompanied by unabated rise of undocumented migrant workers. Mitigating undocumented migration is the main aim of Malaysia's labour migration policy and therefore the focus of Malaysian government. This has impacted on how enforcement agencies work out strategies. These agencies are the forefront of Malaysia's labour migration policy but they faced a number of challenges, such as documentation, finance and manpower capability, and political intervention, which impede their ability to optimize their capabilities in enforcing the Malaysian government labour migration policy. Resolving these challenges and moving towards a long‐term labour migration policy will benefit the Malaysian state, its citizens and the labour migrants.