KUALA LUMPUR: The Association of Employment Agencies, Malaysia (Papa) expressed serious concerns over the ongoing difficulties faced by businesses when applying for foreign worker quotas, which have intensified since applications reopened in October 2025.
The association said it has received a surge of inquiries from multiple industries seeking clarification on application procedures and reporting obstacles encountered throughout the process, including employers’ inability to meet accommodation requirements under Act 446, difficulties in obtaining the required supporting letter under Section 60K, interview officers not approving quotas according to established ratios, and sector-specific restrictions.
"Foreign worker applications were frozen on March 18, 2023, before being reopened on a case-by-case basis in October this year. During the initial reopening, requirements were inconsistent and frequently amended, causing substantial uncertainty and operational difficulties for businesses,” the association said in a statement on Friday (Dec 5).
It also said that many states no longer allowed low-cost, affordable, or public housing to be used as worker accommodation and the limited number of Centralised Labour Quarters (CLQ) and Temporary Labour Quarters (TLQ), particularly in the Klang Valley, has further complicated compliance.
Also, applications to convert shop lots into hostels involve high fees and lengthy processing times, sometimes exceeding a year, making it difficult for small and medium enterprises (SMEs) to meet legal requirements.
Papa said it has formally raised these concerns in a letter to Human Resources Minister Steven Sim and has also met with the Human Resources Ministry’s Policy Division to provide constructive feedback.
The association is proposing a more flexible and facilitative approach that allows employers who cannot fully comply with Act 446 to sign a Letter of Undertaking and place a security deposit with the ministry.
This approach would prevent businesses from immediately losing access to migrant worker quotas, which are critical for operational continuity, while ensuring authorities maintain firm enforcement of accommodation standards, it explained.
Another point of concern for the association is the continued restrictions affecting the manufacturing and construction sectors as no businesses in these industries have been granted quotas, except for limited approvals in the plantation sector, since March 2023.
"A balanced, fair and predictable labour policy is crucial to safeguard Malaysia’s economic resilience, protect workers’ welfare, and support sustainable business operations,” the association said as it urged the Human Resources Ministry and Home Ministry to consider the practical needs of businesses.- Bernama
