THE government has stressed that proposals to introduce a fully digital system for the recruitment of foreign workers remain under evaluation, with no final decision, appointments or agreements made with any party to date.
In a statement, the Ministry of Human Resources (KESUMA) said it is currently reviewing and refining the proposal through ongoing engagement sessions with stakeholders.
These consultations involve labour-supplying countries as well as industry players, including the provider of the Foreign Worker Centralised Management System, which has been used to manage foreign worker applications to Malaysia since 2015.
“Any reports or statements suggesting that a decision has already been finalised are untrue, misleading and do not reflect the government’s actual position,” the ministry said.
The ministry said a comprehensive review of the foreign worker ecosystem has identified gaps in recruitment processes in source countries, particularly issues related to debt bondage, which could expose workers to exploitation.
As a result, it is exploring the development of a digital recruitment system based on artificial intelligence technology to improve the overall foreign worker hiring framework.
Under the proposed model, employers would be able to recruit foreign workers directly based on actual labour needs, covering the entire process in source countries, including registration, selection, job matching, contract agreements between employers and workers, and facilitation of deployment.
“Recruitment costs will be fully borne by employers, thereby reducing reliance on middlemen and ensuring that no financial burden is imposed on foreign workers,” the ministry said.
Officials said the proposal is aligned with fair and ethical recruitment principles promoted by the International Labour Organization and could help address issues of human trafficking and forced labour, while supporting Malaysia’s aspiration to achieve Tier 1 status in the United States Trafficking in Persons Report.
The ministry clarified that the initiative would only cover recruitment processes in source countries after quota approval, and would not interfere with pre-recruitment functions such as regulatory approvals, quota allocation or enforcement activities under existing laws.
Any eventual implementation would remain fully under the ministry’s policy and operational control and would be integrated with existing government systems, including the Foreign Worker Centralised Management System and the National Integrated Immigration System.
It also stressed that the role of private employment agencies in Malaysia would remain intact, with the system designed to be used either directly by employers or through licensed agencies.
The proposal has reportedly received positive feedback from several key labour-supplying countries, including Bangladesh, Indonesia and India, particularly for its potential to improve transparency, efficiency and end-to-end recruitment governance.
On the industry side, major business bodies including the Malaysian Employers Federation, the Associated Chinese Chambers of Commerce and Industry of Malaysia, the Malaysian Associated Indian Chambers of Commerce and Industry, and the Malay Chamber of Commerce Malaysia have expressed support for modernising the system.
The Federation of Malaysian Manufacturers, representing more than 13,000 companies, also welcomed the proposal, saying it reflects industry demand for a more transparent and competitive system that reduces reliance on intermediaries and helps control recruitment costs.
The ministry said any future implementation would be subject to full governance requirements and Cabinet approval after consultations with relevant ministries, industry stakeholders and source countries, ensuring a balanced and effective system.
It added that Malaysia remains committed to strengthening domestic talent development as a core element of labour market reform, in line with long-term plans to reduce reliance on foreign labour under the 13th Malaysia Plan. - April 21, 2026
