Kuala lumpur: The Ministry of Human Resources (KESUMA) stated that all proposals related to a digital foreign worker recruitment system remain under evaluation, with no final decisions, commitments, or agreements made with any parties at this time.
According to BERNAMA News Agency, the ministry is currently reviewing the proposal through preliminary engagement sessions with labor source countries and industry stakeholders, including the technology provider of the Foreign Worker Centralised Management System (FWCMS), which has been in use since 2015 to manage foreign worker entries to Malaysia. KESUMA emphasized that any reports suggesting a finalized decision are misleading and not reflective of the government's stance.
KESUMA acknowledged the media reports and public discussions surrounding the proposal and highlighted findings from a comprehensive study indicating gaps in recruitment components in source countries, particularly concerning debt bondage that could lead to worker exploitation. Consequently, KESUMA is considering a digital recruitment system powered by artificial intelligence to enhance the overall foreign worker ecosystem.
The proposed system aims to facilitate direct recruitment by employers based on actual workforce needs, encompassing the entire process from registration and selection to job matching and agreement on service contracts, all conducted in source countries. This approach intends to shift recruitment costs entirely onto employers, reducing intermediary dependence and financial burdens on foreign workers.
KESUMA assured that the proposal aligns with the fair and ethical recruitment principles advocated by the International Labour Organisation, offering potential solutions to human trafficking and forced labor issues while bolstering Malaysia's bid for Tier 1 status in the U.S. Trafficking in Persons Report. The proposal focuses solely on post-quota approval recruitment processes in source countries, leaving pre-recruitment processes such as regulatory roles and quota approvals unaffected.
The ministry clarified that any eventual implementation would remain under KESUMA's policy and operational control, integrating with existing government systems like FWCMS and the National Integrated Immigration System. Moreover, the involvement of private employment agencies in Malaysia will persist, with the proposal serving as an additional platform for either direct employer use or through agencies.
Support for the proposal has been expressed by major labor source countries including Bangladesh, Indonesia, and India, as well as industry associations such as the Malay Chamber of Commerce Malaysia, the Associated Chinese Chambers of Commerce and Industry of Malaysia, and the Malaysian Employers Federation, collectively representing nearly one million members. These groups view the proposal as a step towards modernizing the foreign worker recruitment system via a digital approach.
Furthermore, the Federation of Malaysian Manufacturers, representing over 13,300 manufacturing companies, has also endorsed the proposal, indicating a demand for a more transparent and competitive system that reduces intermediary reliance and controls recruitment costs.
KESUMA reiterated that any future implementation will adhere to governance requirements and undergo Cabinet review after further engagements with relevant ministries, industry players, and labor source countries to ensure the system is balanced, effective, and aligned with national interests. Simultaneously, the ministry remains committed to developing local talent as a cornerstone of labor market reforms, in line with the 13th Malaysia Plan's long-term agenda to reduce foreign worker dependence.