KUALA LUMPUR, May 1 ― The federal government will end up paying RM77 million a year following its decision to foot the bill for convenience fees for online renewal of foreign worker permits via My EG Services Bhd (MyEG), an anti-crime group claimed today.

MyWatch chief Datuk R. Sri Sanjeevan said he does not see why Putrajaya needs to go to such lengths to support a third party to handle permit renewals when it had been managed efficiently by the Immigration Department in the past.

"The government would bear the RM35 convenience fee for MyEG. The question now is: Why is the government willing to bear such high cost and support MyEG. RM35 for every 2.2 million foreign workers in Malaysia would amount to RM77 million a year," he said in a statement.

Earlier, national news wire Bernama reported that the fee for renewing foreign workers permit will remain at RM125 as Putrajaya has agreed to bear the RM35 convenience fee.

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It was reported that the abolishment of the requirement for employers to pay the fee takes effect from May 2 onwards.

The decision followed a public outcry earlier this year when the Immigration Department introduced mandatory renewal of foreign worker permits electronically through the MyEG platform, carrying a RM38 service charge for each transaction to replace free counter services at the Home Ministry’s offices nationwide.

The department later reopened its counters to allow for manual renewal of foreign worker permits, while the service fee was later reduced to RM35 for each permit.

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Sanjeevan today said it would make more sense to the federal government to spend the millions set aside for MyEG on improving services at the Immigration Department.

He added that Putrajaya should instead cancel the contract with MyEG and bring the matter to Parliament for debate as it deals with public funds.