The influx of immigrants into Malaysia is becoming a subject of controversy. Some local groups claim that since immigrants are demanded in certain industries namely plantation, agriculture, mining, manufacturing and construction sectors, their benefits and impact in the rural sectors needs to be studied. This study identifies the implications of migration on the rural community. The objective of this study is to explore local people's perceptions on the socio-economic impacts of Indonesian immigrants in their rural areas. The data is collected using both qualitative and quantitative techniques. Surveys were carried out to 671 local people in six villages through a purposive sampling technique. Results showed locals acknowledge the importance of immigrant labour in rural sectors and contribute to the positive impact on rural development. Generally, Indonesian workers play a significant role and have a huge impact on the economic development in rural areas. Indonesian immigrants are well known as labour replacements or seasonal immigrants and have the positive attitude as hardworking and obedient workers. Thus, policy on immigrants in Malaysia needs to be further revised due to a xenophobic reaction by the locals that create prejudices towards immigrants.