PETALING JAYA: While the extended Migrant Repatriation Programme 2.0 (PRM 2.0) may ease pressure on enforcement, it could pose challenges in replacing outgoing workers, says the Malaysian Employers Federation (MEF).
Its president, Datuk Syed Hussain Syed Husman, said the extension is a practical move to manage undocumented foreign workers without triggering manpower disruptions in industries.
However, he said the extension indicates a fundamental weakness in Malaysia’s labour framework.
“Malaysia continues to rely on periodic programmes like this instead of a stable and predictable foreign worker policy.
“While the extension helps ease immediate enforcement pressures and gradually reduce the number of undocumented workers, it does little to address what comes next,” he said.
Syed Hussain noted that in the absence of a follow-up mechanism such as a recalibration pathway, employers in the labour-intensive manufacturing, construction and plantation sectors may face widening workforce gaps as workers leave.
He also pointed out that the current approach is focused on reducing worker numbers rather than formalising them.
Syed Hussain said this could tighten labour supply at a time when businesses are already dealing with rising operating costs.
He said MEF recommends speeding up foreign worker approvals to replace those repatriated and increasing digitalisation to reduce reliance on intermediaries.
Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) president Datuk Ng Yih Pyng said the association supports the extension, as businesses should operate with legitimate manpower.
However, he said ACCCIM hopes the government will continue to streamline processes and improve implementation efficiency to enable employers to regularise their foreign workers more smoothly and in a timely manner.
Ng said a decline in a portion of the current workforce without adequate replacement could impact certain industries.
He noted that a gradual and well-managed transition, coupled with appropriate workforce replacement measures, would help businesses adapt more effectively.
Ng said proposals to legalise undocumented workers are a positive step that may help stabilise the labour market.
However, he said its success depends on execution and clear policy guidelines.
Meanwhile, Malaysian Indian Restaurant Owners Association (Primas) president Datuk J. Govindasamy urged the government to consider allowing restaurants to legalise existing undocumented workers under strict conditions.
He suggested that such workers be bonded to a restaurant for two years, with work levies and compound fines borne by their employers.
He also proposed a parallel legalisation and workforce retention window of six months.
He said there are various reasons why skilled foreign workers end up becoming undocumented migrants.
Since these workers have already undergone training and are willing to work, he suggested that restaurants be allowed to legalise them.
Govindasamy said legalising undocumented workers would reduce deportation costs for the government.
On Thursday, the Immigration Department announced that the year-long PRM 2.0, which was due to end on April 30, would be extended until May 31, 2027.
Between May 2025 and April this year, 254,186 undocumented immigrants from 112 countries signed up for the programme.
Revenue from fines, compounds and other charges amounted to RM127mil.
