PETALING JAYA: Direct hiring of foreign workers must be supported by strong digital systems and clear, consistent rules to help small employers manage the process, says Malay Chamber of Commerce president Norsyahrin Hamidon.
While welcoming the government’s move to allow employers to recruit foreign workers directly, he said proper governance and monitoring are crucial to ensure the system works as intended.
The main concerns include whether or not small employers have the capacity to manage direct recruitment; the need for a transparent and integrated digital platform; and consistent enforcement of labour and immigration laws, she added.
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Norsyahrin said the initiative, announced by Human Resources Minister Datuk Seri Ramanan, could help reduce high recruitment costs and curb over-reliance on middlemen, which has long burdened businesses, particularly micro, small and medium enterprises.
He said the current recruitment structure has resulted in high costs, poor transparency and increased risks of foreign worker abuse and exploitation.
"An inefficient recruitment system could also encourage informal or black-market economic activities, disrupt project implementation and weaken the competitiveness of local businesses in domestic and regional markets," Norsyahrin said in a statement on Friday (Feb 6).
While describing the direct hiring approach as a step in the right direction, Norsyahrin said safeguards are needed to ensure employers, especially smaller firms, are not overwhelmed by administrative and compliance requirements.
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He added that the chamber views the initiative as a structural improvement to the labour market that also addresses issues of transparency, integrity and fairness within the business ecosystem.
Norsyahrin said the chamber is currently conducting the Gerakan Ekoniaga Madani (Gema) programme nationwide to engage directly with business communities and gather feedback on labour-related issues.
This feedback will be channelled to the Human Resources Ministry to help improve policy implementation and ensure the initiative benefits employers, foreign workers and the wider economy, he added.
On Wednesday (Feb 4), Ramanan said the government was drawing up a pathway to allow employers to hire foreign workers directly as part of an effort to eliminate third-party agents or middlemen from the recruitment process.
