PETALING JAYA: In a move aimed at addressing Malaysia’s labour demand, foreign workers in formal sectors will soon be allowed to switch employers across different sectors, a policy welcomed as practical and timely by industry stakeholders.
Human Resources Minister Steven Sim said detailed guidelines would be announced soon, outlining the terms and procedures involved.
“The guidelines will include the minimum period, workers’ consent and the sectors that will be involved,” he said at the Social Security Organisation (PERKESO) headquarters yesterday.
Currently, foreign workers can only change employers within the same sector in which they are employed.
Sim said the new policy would not only help prevent the illegal hiring of foreign workers when they are transferred to a different sector but also ensure that hiring stays within the approved quota limits.
The decision was made during the 13th joint committee meeting on foreign worker management, co-chaired by Sim and Home Minister Datuk Seri Saifuddin Nasution Ismail.
The formal sectors refer to manufacturing, construction, agriculture, plantation and services.
The announcement has been met with support from industry stakeholders.
Federation of Malaysian Manufacturers (FMM) president Tan Sri Soh Thian Lai said the move would help maintain operational continuity and minimise disruptions to production activities.
He added that several steps should be taken to ensure smooth implementation, especially concerning levy payments, digitalisation and worker consent.
“Any levy already paid should be transferable to the new employer. Alternatively, the new employer should only pay the difference in levy if the rate differs between sectors. This ensures financial fairness and avoids placing a double burden on employers,” he said in a statement.
Soh also proposed that the Immigration Department take direct management of worker transfers in order to ensure consistency, prevent abuse and expedite approvals.
He noted that conducting the whole process online could also enhance transparency, reduce administrative burdens and support compliance monitoring.
“Transfers must be based on the informed consent of the worker, free from coercion and documented accordingly. A clear mechanism should exist to address grievances or disputes arising from such transfers.
“FMM suggests that the MyFutureJobs platform be leveraged as a national clearinghouse for matching surplus and demand across sectors,” Soh said, welcoming the latest policy.
Kuala Lumpur and Selangor Indian Chamber of Commerce and Industry president Nivas Ragavan said the move would help relieve current labour shortages in several sectors such as agriculture, construction, manufacturing and services.
However, he recommended that the government provide proper notice periods to avoid exploitation and disruption.
“The policy promotes labour market flexibility and prevents wastage of skilled and semi-skilled manpower, particularly when a worker is underutilised or displaced.
“The implementation must be carefully managed to avoid exploitation, sudden attrition in critical sectors and disruptions to current employer planning,” said Nivas.
