PUTRAJAYA: All proposals related to a digital foreign worker recruitment system are still under evaluation and have yet to be decided, and no commitments, appointments or agreements have been made with any party so far, says the Human Resources Ministry.
In a statement Tuesday (April 21), the ministry said it is currently reviewing and refining the proposal through engagement sessions.
The engagement sessions involve labour source countries and industry players, including the technology provider of the Foreign Worker Centralised Management System (FWCMS), which has been used to manage foreign workers coming to 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.
The ministry said a comprehensive review of the foreign worker ecosystem found gaps in the recruitment component in source countries, particularly involving issues of debt bondage, which could expose workers to exploitation risks.
As a result, it is exploring the development of a digital foreign worker recruitment system based on artificial intelligence (AI) technology to improve the overall foreign worker recruitment ecosystem.
According to the statement, the approach would allow foreign workers to be recruited directly by employers based on actual labour needs, covering the entire process in source countries, including registration, selection, job matching, agreement on employment contracts between employers and workers, and facilitating the deployment of workers.
“Recruitment costs will be borne entirely by employers, reducing reliance on middlemen and ensuring that no financial burden is imposed on foreign workers,” the statement said.
The proposal is in line with the International Labour Organization’s (ILO) principles on fair and ethical recruitment, and has the potential to address issues of human trafficking and forced labour, while strengthening Malaysia’s efforts to achieve a Tier 1 ranking in the United States Trafficking in Persons Report.
The Human Resources Ministry stressed that the proposal focuses only on the recruitment process in source countries — at the post-quota approval stage — and does not affect any pre-recruitment processes such as the roles of regulatory agencies, quota approvals, or government enforcement activities under existing laws.
Any implementation would be fully subject to the ministry’s control in terms of policy and operations, and integrated with existing government systems, including FWCMS and the National Integrated Immigration System (NIISe).
In terms of foreign worker management, the involvement and role of private employment agencies in Malaysia would remain and would not be affected, as the ministry views the proposal as a platform that can be used either directly by employers or through private employment agencies to carry out recruitment.
Efforts to strengthen the recruitment system have also received positive support from several key labour source countries such as Bangladesh, Indonesia and India, particularly in enhancing transparency and operational efficiency and ensuring an end-to-end foreign worker ecosystem from pre- to post-recruitment.
On the industry side, major associations including the Malay Chamber of Commerce Malaysia (DPMM), the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM), the Malaysian Associated Indian Chamber of Commerce and Industry (MAICCI), and the Malaysian Employers Federation (MEF) have also supported the government’s move to modernise the foreign worker recruitment system.
The Federation of Malaysian Manufacturers (FMM), representing more than 13,300 manufacturing companies, has also openly welcomed the proposal, reflecting industry demand for a more transparent and competitive system that can reduce reliance on middlemen and control recruitment costs, the statement added.
Any future implementation will comply with all governance requirements and will go through Cabinet consideration and approval after engagement sessions involving relevant ministries, industry players and labour source countries to ensure the system developed is balanced, effective and meets national needs and interests.
The Human Resources Ministry said it remains committed to strengthening local talent development as the core of labour market reforms, in line with the long-term agenda to reduce dependence on foreign workers as outlined in the 13th Malaysia Plan (RMK13). — Bernama
