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Direct Hiring Initiative Aims to Curb Exploitation of Foreign Workers in Malaysia

Kuala lumpur: The Human Resources Ministry's (KESUMA) initiative to develop a pathway enabling Malaysian employers to directly hire foreign workers is seen as a necessary move to curb excessive recruitment costs, address the lack of transparency, and prevent the exploitation of foreign workers by intermediaries.

According to BERNAMA News Agency, Malaysian Employers Federation (MEF) president Datuk Dr Syed Hussain Syed Husman stated that discussions with foreign embassies reflected broad agreement on the need for a recruitment framework that reduces unnecessary costs, removes middlemen, and ensures workers understand and consent to their employment terms before arrival.

He emphasized the critical role of foreign labour in Malaysia's economy, especially in sectors with low local participation. MEF expressed confidence that the proposed government-to-government, technology-enabled recruitment model, which includes digital verification and secure payment mechanisms, could significantly improve Malaysia's labour governance ecosystem if implemented consistently and with stakeholder consultation.

'MEF stands ready to continue working closely with KESUMA, Home Ministry, and all relevant stakeholders to ensure that this initiative is sustainable, transparent, and aligned with international best practices,' he said in a statement today.

Syed Hussain also commended Human Resources Minister Datuk Seri R. Ramanan for his proactive leadership in addressing key challenges faced by employers and foreign workers. He noted that MEF has consistently advocated for all labour-related matters to be placed under the purview of KESUMA, with immigration requirements remaining under the Home Ministry.

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