PUTRAJAYA, April 21 — The Ministry of Human Resources (Kesuma) stressed that all proposals related to a digital foreign worker recruitment system are still at the evaluation stage and have not been finalised, with no commitments, appointments or agreements made with any party thus far.
In a statement today, Kesuma said it is currently reviewing and refining the proposal through preliminary engagement sessions with labour source countries and industry stakeholders, including the technology provider of the Foreign Worker Centralised Management System (FWCMS), which has been used to manage foreign workers entering Malaysia since 2015.
“Any reports or statements suggesting that a decision has been finalised are untrue, misleading and do not reflect the government’s actual position,” the statement said.
Taking note of various media reports and public discussions on the proposal, Kesuma said a comprehensive study of the foreign worker ecosystem found gaps in recruitment components in source countries, particularly involving debt bondage issues that could expose workers to exploitation risks.
In light of this, Kesuma said it is exploring the development of a digital foreign worker recruitment system based on artificial intelligence technology to improve the ecosystem as a whole.
According to the statement, the approach would enable the direct recruitment of foreign workers by employers based on actual workforce needs, covering the entire process in source countries, including registration, selection, job matching, agreement on service contracts between employers and workers, as well as facilitation of worker deployment.
“Recruitment costs will be fully borne by employers, thereby reducing reliance on intermediaries and ensuring no financial burden is placed on foreign workers,” it said.
Kesuma also stressed that the proposal is aligned with the principles of fair and ethical recruitment advocated by the International Labour Organisation and has the potential to address human trafficking and forced labour issues, while strengthening Malaysia’s efforts to achieve Tier 1 status in the United States Trafficking in Persons Report.
“The proposal will focus solely on the recruitment process in source countries, specifically at the post-quota approval stage, and will not affect any pre-recruitment processes such as the roles of regulatory agencies, quota approvals and government enforcement activities based on existing laws,” the statement said.
Kesuma explained that any eventual implementation would be fully subject to Kesuma’s control in terms of policy and operations, and integrated with existing government systems, including FWCMS and the National Integrated Immigration System.
“In terms of foreign worker management, the involvement and role of private employment agencies in Malaysia will remain and will not be affected, as Kesuma views this proposal as a platform that can be used either directly by employers or through private employment agencies to carry out recruitment processes,” it added.
Kesuma said efforts to strengthen the recruitment system have also received positive support from several major labour source countries such as Bangladesh, Indonesia and India, particularly in enhancing transparency and operational efficiency, as well as establishing continuity in the foreign worker ecosystem from pre- to post-recruitment stages.
At the industry level, major associations including the Malay Chamber of Commerce Malaysia, the Associated Chinese Chambers of Commerce and Industry of Malaysia, the Malaysian Associated Indian Chambers of Commerce and Industry and the Malaysian Employers Federation, which collectively represent nearly one million members, have also supported the government’s efforts to modernise the foreign worker recruitment system through a technology-driven digital approach.
“The Federation of Malaysian Manufacturers, representing more than 13,300 manufacturing companies, has also openly welcomed the proposal, reflecting industry demand for a more transparent, competitive system that can reduce reliance on intermediaries and control recruitment costs,” the statement said.
Kesuma stressed that any future implementation will comply with all established governance requirements and undergo Cabinet consideration and approval after engagements involving relevant ministries, industry players and labour source countries to ensure the system developed is balanced, effective and meets national needs and interests.
At the same time, Kesuma will remain committed to strengthening local talent development as the core of labour market reform, in line with the long-term agenda to reduce reliance on foreign workers as outlined in the 13th Malaysia Plan. — Bernama
