BUSINESSES facing persistent labour shortages are calling for Malaysia’s shift to fully digital foreign worker recruitment to translate into faster approvals, clearer timelines and fewer administrative hurdles.
Malaysian Employers Federation (MEF) president Datuk Dr. Syed Hussain Syed Husman welcomed the Ministry of Human Resources’ move to put foreign worker recruitment applications fully online, saying it could significantly improve the efficiency, transparency and convenience of the system.
"The Employers Federation supports the move to make foreign worker recruitment applications fully online, which will reduce unnecessary in-person visits, shorten processing time, increase employer transparency, and strengthen government oversight of the recruitment process."
He said the move was particularly significant for industries that continued to depend on foreign workers to supplement the local workforce amid labour shortages.
However, Syed Hussein stressed that digitalisation should not result in weaker requirements, but should make compliance more efficient, predictable and transparent.
The federation has proposed six measures to ensure the Foreign Workers Centralized Management System (FWCMS) delivers meaningful improvements for employers.
A key recommendation is an end-to-end application tracking system that would allow employers to monitor applications in real time and understand when further information or action is required.
"If the government indicates that a complete application can be approved within 14 days, the system should disclose the expected processing time to the employer. Any delays should be accompanied by a clear reason and the corresponding actions that the employer needs to take in the case of use."
He also called for information submitted and verified through the system to be shared directly with relevant government agencies, within legal and technological limits, so employers would not have to repeatedly submit identical documents.
Such integration, he said, would reduce duplication and unnecessary administrative work.
Syed Hussein said the government must also ensure the online system had sufficient capacity, strong cybersecurity and adequate data protection, as technical failures, slow response times or system outages could directly disrupt business operations.
Regular maintenance and contingency arrangements should also be put in place.
"The government should also maintain an efficient help desk and upgrade the appeals mechanism. Although digitalization has reduced the need for face-to-face interaction, employers must still be able to get human assistance when they encounter technical problems, complex situations, or applications that have not been processed by the deadline."
He said employers and industry associations should continue to be involved in improving the FWCMS, allowing the government to gather feedback and address problems affecting users.
Greater certainty over recruitment timelines is particularly important for micro, small and medium-sized enterprises, which need to plan staffing and operations around the availability of workers.
"Predictability is extremely important for businesses, especially micro and small and medium-sized enterprises. Employers need to know how long the entire process is expected to take, what requirements must be met, and what they need to do if there are problems with the application. Therefore, a successful digital system should not simply replace paper applications with online applications, but should fundamentally improve the efficiency, transparency, and predictability of the entire process."
Syed Hussein also welcomed the Human Resources Ministry’s consideration of establishing a foreign worker transit centre to ease congestion and operational difficulties at entry points.
He said the proposed centre should streamline transit, inspection and documentation procedures without creating additional delays, enabling foreign workers to complete the necessary formalities and begin work as soon as possible after arriving in Malaysia.
"Such facilities will help enhance coordination between relevant agencies and provide a more orderly entry process. The proposed transit hub should be designed as a one-stop coordination platform to enable necessary verification, document review and related processes to be completed efficiently, thereby reducing congestion and unnecessary delays for employers and newly arrived workers."
He said the digitalisation of recruitment and improvements to foreign workers’ entry and transit arrangements should form part of a broader effort to create a more integrated, transparent and efficient management system.
The federation, he added, looked forward to constructive cooperation with the Ministry of Human Resources and relevant government agencies to ensure the new online system achieves its intended goals. - August 23, 2026
