Home Minister Datuk Seri Dr Ahmad Zahid Hamidi said the cards would be issued in stages by middle of next month to some 2.3 million foreigners.
"Migrant workers only have to produce the card and not their passport to verify their identify," he said.
Ahmad Zahid said the more sophisticated card could store much more data about the holder than the previous identification document and could be examined easily by the security authorities.
The minister also said that the authorities would press on with the operation to haul up illegal migrant workers even after issuing the card.
"We will not relent and will carry on (with the operation) until the end of this year and even into next year. The card will serve to differentiate the legal and illegal foreigners," he said.
Ahmad Zahid the card would come in different colours to identify the workers in the various sectors of employment and the cost would be borne by the holder.
He said the ministry would study the immigration laws to determine the duration for renewal of the card, either annually or biennially.
He also said that the card would be introduced for foreign students, holders of firearms licences and Department of Civil Defence and People's Volunteer Corps (Rela) volunteers.