06/02/2026

FRIDAY | FEB 6, 2026

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Ű BY HARITH KAMAL newsdesk@thesundaily,com

‘Direct foreign worker hiring to benefit employers’

PETALING JAYA: A proposed direct hiring system for foreign workers could ease Malaysia’s long-standing recruitment woes, from high costs to worker exploitation, but its success would hinge on strong governance, employer readiness and sustained institutional support, said Universiti Malaysia Kelantan human resource expert Prof Dr Balakrishnan Parasuraman. He said allowing employers to hire foreign workers directly through a government regulated platform could streamline recruitment while improving transparency and accountability. “By reducing reliance on third-party intermediaries such as hiring agents, a direct hiring system could help lower recruitment costs and reduce the risk of exploitation. “It may also limit opportunities for illegal fee-charging and document irregularities, while improving accountability and traceability in the recruitment process.” Balakrishnan added that recruitment conducted through a regulated platform would clearly establish employer responsibility for wages, contracts and working conditions, potentially reducing disputes linked to labour violations. “The approach is broadly consistent with International Labour Organisation principles on fair recruitment and could support Malaysia’s efforts to strengthen its international standing, particularly in sectors subject to closer labour compliance scrutiny.” It was reported on Wednesday that the Human Resources Ministry is formulating a pathway to allow local employers to directly hire foreign workers, in a move to eliminate third-party agents from the process. Its minister Datuk Seri R. Ramanan said the proposed mechanism, which is still being refined, would be discussed with the Home Ministry and key stakeholders before being

fluctuated due to the absence of a single, transparent framework. The ministry said similar concerns have been raised during its engagements with foreign embassies, many of which have expressed support for a recruitment system that is more consistent, transparent and cost-effective. “There is broad agreement on the need for a framework that reduces unnecessary costs, minimises reliance on intermediaries and ensures workers clearly understand and agree to their employment terms before arriving in Malaysia,” Syed Hussain said. He emphasised that foreign labour continues to play a vital role in the economy, particularly in sectors in which local participation remains limited. “As a developing economy, Malaysia requires foreign workers to meet the operational needs of key industries. “This is an economic reality and businesses must be able to access labour in a lawful, ethical and predictable manner.” In line with broader labour reforms, Syed Hussain also proposed simplifying the process for undocumented foreign workers to return to their home countries, describing it as a way to ease enforcement pressures while encouraging voluntary compliance. “A clear and dignified return mechanism would benefit enforcement agencies and employers, while also addressing humanitarian considerations,” he said, reaffirming MEF’s commitment to fair treatment of all workers regardless of nationality. He also expressed confidence that a government-to-government, technology enabled recruitment model, including digital verification and secure payment systems, could strengthen Malaysia’s labour governance if implemented consistently and in close consultation with stakeholders. – By Harith Kamal wage payments, unlawful deductions, living conditions and retaliation against workers who lodge complaints, must also be addressed. On the use of artificial intelligence (AI) for real-time translation during interviews, Balakrishnan said the technology could help reduce language barriers and reliance on intermediaries, but should be applied cautiously. “AI translation could be useful for commonly spoken migrant languages, but it should complement, not replace, human oversight, particularly when explaining contracts and employment terms.” At the same time, he acknowledged that recruitment agents have traditionally played a role in bridging information gaps between employers and labour-source countries, particularly for SME unfamiliar with overseas education systems and skill standards. “This highlights the importance of strong governance. “Whether recruitment is conducted directly or through third parties, transparency, integrity and effective oversight remain critical.” Ultimately, he said the success of direct hiring would depend on close coordination among ministries, embassies and regulatory agencies. “A well-coordinated, one-stop system would be key. Without this, delays and mismatches could continue, affecting both employers and workers.”

PETALING JAYA: The Malaysian Employers Federation (MEF) has welcomed the Human Resources Ministry’s proposal to allow employers to directly hire foreign workers, saying the move could improve transparency and address long-standing recruitment challenges linked to high costs and worker exploitation. MEF president Datuk Dr Syed Hussain Syed Husman said the initiative, aimed at reducing reliance on third-party agents, was a timely step towards strengthening labour governance and protecting the interests of both employers and workers. “MEF appreciates the strong leadership shown by Human Resources Minister Datuk Seri R. Ramanan in addressing one of the most complex and persistent issues in foreign labour recruitment. “The move to allow direct hiring is timely and necessary to address issues such as high recruitment costs, lack of transparency and risks of worker exploitation linked to intermediaries.” Syed Hussain said MEF has consistently advocated for labour-related matters to be placed under the purview of the Human Resources Ministry, while immigration requirements remain with the Home Ministry. He added that MEF expressed hope that the Cabinet would take into account employers’ operational realities and support the proposal to enable direct hiring. He also highlighted that frequent policy changes over the years, often coinciding with shifts in ministerial leadership, have resulted in inconsistent hiring rules, creating uncertainty for employers, workers and foreign embassies in labour-sending countries. “The policy shifts have made workforce planning difficult. “Employers face uncertainty, workers are confused and foreign embassies struggle to manage expectations and compliance,” he said, adding that recruitment costs have also “There are also potential legal and reputational risks if employers are not fully familiar with evolving regulatory requirements, particularly in relation to wages, contracts and work permits.” On recruitment costs, Balakrishnan said the proposed system could help curb the high fees often paid by foreign workers by simplifying the recruitment chain. “Placing recruitment within a government regulated framework could make costs more transparent and predictable. “However, this would need to be supported by clear cost guidelines, mandatory disclosure of recruitment-related expenses and, where feasible, policies to minimise or eliminate fees borne by workers.” He emphasised that effective enforcement would remain critical, including audits, penalties for non-compliance, accessible complaint mechanisms and cooperation with labour-sending countries to address hidden charges. He also said beyond costs, the system must tackle persistent issues such as job mismatches, contract substitution and post-arrival changes to employment terms. “Clear, standardised and translated contracts from the pre-departure stage, with any changes requiring documented consent and regulatory approval, would be important safeguards.” He said broader concerns, including delayed

o Approach could streamline recruitment while improving transparency, accountability submitted to the Cabinet for approval, adding that the role of recruitment agents has long drawn concern from MPs and the media for exposing workers to exploitation, including debt bondage and elements of modern slavery. However, Balakrishnan said employers – especially small and medium enterprises (SME) – may struggle to transition away from long-established, agent-led recruitment models. “Smaller businesses often have limited human resource capacity and may find it challenging to manage recruitment processes involving documentation, immigration compliance, contract preparation and coordination with foreign authorities. “This could increase the risk of administrative errors, non-compliance and delays.” He also said while direct hiring could reduce recruitment costs over time, the initial transition may be time-consuming and resource-intensive for smaller firms, due to training needs, system adjustments and unfamiliar digital platforms.

Initiative timely step towards protecting employers, workers: MEF

Prasarana staff promoting the Rapid Kota and Rapid Kembara passes at the launch of My50 savings tracker at the Ampang Park LRT station. – ADAM AMIR HAMZAH/THESUN

Cable theft no longer minor offence KUALA LUMPUR: Transport Minister Anthony Loke yesterday said cable theft is no longer a minor offence but a serious threat to public transport and passenger safety.

facilities and other public transport assets, including the use of cables and safety equipment that are harder to damage or steal. While improvements in design and materials are being explored, Loke acknowledged that overhauling older structures would be costly. He also welcomed Home Minister Datuk Seri Saifuddin Nasution Ismail’s move to tighten penalties for cable theft. “At present, cable theft is classified as a minor offence with fines of about RM1,000 to RM2,000. Once cases are concluded, the penalties fail to act as a strong deterrent to offenders.” Saifuddin, on Wednesday, said the government is reviewing legal provisions to strengthen penalties for cable theft, especially for strategic projects such as the East Coast Rail Link (ECRL). The matter was discussed during a recent meeting with Loke, Keretapi Tanah Melayu Berhad and ECRL authorities. – By Harith Kamal

Speaking at the launch of the My50 savings tracker and the digitalisation of Rapid Kota and Rapid Kembara passes event, Loke described cable theft as a form of sabotage against the nation’s infrastructure. “Each incident not only disrupts operations but also compromises the safety of public transport services,” he said, highlighting the impact on operators such as Prasarana Malaysia Bhd and Keretapi Tanah Melayu Berhad. He said thieves often target copper cables for their high value, despite the risks in hazardous and restricted areas. “So I want to remind them: don’t risk your lives just because of the high price of cables.” He added that the ministry is stepping up efforts to protect infrastructure along highways, Keretapi Tanah Melayu Berhad