HR Ministry: No decision yet on migrant worker recruitment systems

The Human Resources Ministry stressed that all proposals related to a digital migrant worker recruitment system are still at the evaluation stage and have not been finalised.

It said there were no commitments, appointments, or agreements made with any party thus far.

In a statement today, the ministry said it is reviewing and refining the proposal through preliminary engagement sessions with labour source countries and industry stakeholders, including the technology provider of the Foreign Worker Centralised Management System (FWCMS), which has been used to manage migrant workers entering 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 read.

Taking note of media reports and public discussion on the proposal, the ministry said a comprehensive study of the migrant worker ecosystem found gaps in recruitment components in source countries, particularly involving debt bondage issues that could expose workers to exploitation.

In light of this, the ministry said it is exploring the development of a digital migrant worker recruitment system based on artificial intelligence to improve the ecosystem.

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According to the statement, the approach would enable the direct recruitment of migrant workers by employers based on actual workforce needs, covering the entire process in source countries.

This includes registration, selection, job matching, agreement on service contracts between employers and workers, as well as worker deployment, it said.

“Employers will fully bear recruitment costs, thereby reducing reliance on intermediaries and ensuring no financial burden is placed on migrant workers,” it said.

The ministry also stressed that the proposal is aligned with the principles of fair and ethical recruitment advocated by the International Labour Organization and has the potential to address human trafficking and forced labour issues, while strengthening Malaysia’s efforts to achieve Tier 1 status in the United States Trafficking in Persons Report.

“The proposal will focus solely on the recruitment process in source countries, specifically at the post-quota approval stage, and will not affect any pre-recruitment processes such as the roles of regulatory agencies, quota approvals, and government enforcement activities based on existing laws,” the statement read.

The ministry explained that any eventual implementation would be fully subject to its control in terms of policy and operations, and integrated with existing government systems, including FWCMS and the National Integrated Immigration System.

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“In terms of migrant worker management, the involvement and role of private employment agencies in Malaysia will remain and will not be affected, as the ministry views this proposal as a platform that can be used either directly by employers or through private employment agencies to carry out recruitment processes,” it added.

The ministry said efforts to strengthen the recruitment system have also received positive support from several major labour source countries, such as Bangladesh, Indonesia, and India.

This is particularly in enhancing transparency and operational efficiency, as well as establishing continuity in the migrant worker ecosystem from pre- to post-recruitment, it said.

At the industry level, major associations were also said to support the government’s efforts to modernise the migrant worker recruitment system through a technology-driven digital approach.

They include the Malay Chamber of Commerce Malaysia, the Associated Chinese Chambers of Commerce and Industry of Malaysia, the Malaysian Associated Indian Chambers of Commerce and Industry, and the Malaysian Employers Federation, which collectively represent nearly one million members.

“The Federation of Malaysian Manufacturers, representing more than 13,300 manufacturing companies, has also openly welcomed the proposal, reflecting industry demand for a more transparent, competitive system that can reduce reliance on intermediaries and control recruitment costs,” the statement read.

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The ministry stressed that any future implementation will comply with all established governance requirements and undergo cabinet consideration and approval.

This is after engagements involving relevant ministries, industry players, and labour source countries to ensure the system developed is balanced, effective, and meets national needs and interests, it said.

It also said the ministry will remain committed to strengthening local talent development as the core of labour market reform, in line with the long-term agenda to reduce reliance on migrant workers as outlined in the 13th Malaysia Plan.

- Bernama

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