KUALA LUMPUR (April 21): The Human Resources Ministry said it is looking at a potential new digital platform for foreign worker recruitment, but noted that no decision has been made.
The initiative is still at the research stage, it said in a statement on Tuesday. Various media reports and public discussions regarding a new digital system for foreign worker recruitment have caused confusion among the public and industry players, it noted.
“Any report or statement that portrays as if a decision has been finalised is inaccurate, misleading, and does not reflect the government’s actual position,” the ministry said.
Bloomberg reported last week that Malaysia plans to adopt a new foreign worker recruitment system developed by Bestinet Sdn Bhd. The company, founded by labour tycoon Datuk Seri Aminul Islam Abdul Nor, currently operates a similar digital platform called the Foreign Worker Centralised Management System.
The new system was to enable companies to hire workers directly, rather than using middlemen, some of whom charge them excessive fees, Bloomberg said, citing anonymous sources.
Human Resources Minister Datuk Seri R Ramanan later refuted the report, describing it as unverified and inaccurate.
New system to enable direct recruitment
In its statement on Tuesday, the Human Resources Ministry said it is exploring the need to develop a new system to improve the foreign worker recruitment ecosystem by enabling direct recruitment.
“This approach would enable the direct recruitment of foreign workers by employers based on actual labour needs, encompassing the entire process in source countries, including registration, selection, job matching, approval of service contracts between employers and workers, as well as facilitation of worker deployment,” the ministry said.
“Recruitment costs will be fully borne by employers, thereby reducing reliance on intermediaries and ensuring that no financial burden is imposed on foreign workers,” it added.
The move follows a review of Malaysia’s foreign worker ecosystem, where the Human Resources Ministry found gaps in recruitment components in source countries, particularly the issue of the debt burden borne by foreign workers due to debt bondage.
It is in line with the government’s aspiration to strengthen governance in the management of foreign workers, taking into account their impact on the economy and the nation’s reputation, the ministry said.