Winds of change at HR Ministry

Ramanan’s reform agenda in battling corruption and revamping the hiring of foreign workers.

ONE month on the job and it looks like our new Human Resources Minister has taken a sledgehammer to his portfolio.

In the ever-evolving landscape of Malaysian governance, few portfolios carry as much weight as human resources, especially in a nation heavily reliant on foreign labour to fuel its economy.

Datuk Seri R. Ramanan, has hit the ground running with a series of bold initiatives aimed at rooting out corruption within his ministry and overhauling the notoriously opaque system for hiring foreign workers.

Positioning himself as a reformer, he is pushing for systemic changes. But can these efforts truly cleanse a ministry that has long been plagued by allegations of graft and exploitation?

His recent announcement that his ministry is in the process of formulating a pathway that would allow Malaysian employers to directly hire foreign workers, as part of efforts to eliminate third-party agents from the recruitment process, is a game-changer, if he pulls it off.

It is no secret that there are powerful forces within the Malaysian ecosystem, be it political, civil service or others, who want to maintain the status quo for how foreign labour is brought and managed in Malaysia.

According to the United States State Department’s 2025 Trafficking in Persons (TIP) Report, Malaysia is classified at Tier 2. This ranking indicates that Malaysia does not fully meet the minimum standards for the elimination of trafficking.

It is not an accolade that we should want to maintain, but unfortunately, many in the ecosystem do not seem to mind the fact that we continue to fail and are accused of being a major actor in human trafficking.

The TIP Report highlights the need for stronger efforts to prosecute traffickers, specifically in the palm oil and manufacturing sectors, and to address official complicity in trafficking.

The Madani government, which prides itself on reforms, needs to finally fix the foreign worker hiring system.

Time is of the essence because Ramanan only has two years at best (before the next general election).

If he can introduce what he has said he wants to do, which is allowing companies to recruit foreign labour directly, this will not only remove the middleman.

More importantly, it would help foreign labour coming to Malaysia from paying exorbitant third-party fees that stifle them for their first two years of their earnings. Essentially, this is debt bondage.

If we recall in the last few years, several sectors, particularly the plantation and glove manufacturing, were affected enormously, given their non-compliance in labour practices that breached the International Labour Organi­sation (ILO) standards.

This could easily come back and affect us; hence, the minister’s plan is not only timely but necessary.

But, not to pour cold water on his ideas, realistically speaking, does he have the political will to see it through? Especially with potential pushback from civil servants and the ecosystem.

If he does get it through, this will be a major reform for the Madani government that they have undertaken, one that clearly proves that the current administration is walking the talk to be rid of illegal foreign labour practices, which feed into the international human trafficking ecosystem.

“Today, some workers reportedly pay fees ranging from US$5,000 (RM19,630) to as much as US$8,000 (RM31,408) before they even set foot in this country.

“This contributes to social problems, human trafficking and money laundering,” Ramanan told The Star, adding that the ILO upholds a principle that recruitment fees should not exceed one month’s wages for foreign and domestic workers.

He said the proposed hiring solution, which is being fine-tuned, will be discussed with the Home Ministry and relevant stakeholders before being presented to the Cabinet for approval. The foreign worker hiring system is not the only change at the ministry.

Ramanan is also driving a major restructuring and governance overhaul at HRD Corp to improve transparency and accountability.

Key actions include suspending top management, reviewing training providers, and enforcing stricter, data-driven monitoring of training programmes to ensure levy funds are properly utilised.

The Human Resources Ministry has not been immune to Malaysia’s broader anti-graft challenges, with past PAC and MACC investigations revealing inconsistencies, abuse of power, and mismanagement under previous leadership.

In 2024, HRD Corp achieved its highest levy collection in 32 years of RM2.3bil. But the elephant in the room is their questionable investments.

The restructuring exercise, including wholesale changes of its board and a review of training providers, will emphasise responsible business practices and transparency.

In a country where foreign workers form the backbone of key sectors, Ramanan’s dual focus on anti-corruption and hiring reform is both pragmatic and politically astute.

If implemented effectively, these initiatives would not only curb graft but also foster a fairer labour market, benefiting workers, employers and the economy alike.

Yet, as with all reforms, the devil is in the details – and execution. Malaysians will be watching closely to see if Ramanan delivers on his promises or if these become just another chapter in the ongoing saga of bureaucratic hurdles.