By DayakDaily Team
KUCHING, May 31: Employers will continue to enjoy a 20 per cent discount on Foreign Workers Transformation Approach (FWTA) renewal fees until December 2026, with any discounts beyond that period subject to further negotiations.
Deputy Minister in the Premier’s Department (Labour, Immigration and Project Monitoring) Datuk Gerawat Gala said the fee for work permit applications and renewals under the FWTA remains RM1,854 as stipulated in the contract with the service provider.
However, employers have been given a 51 per cent discount on FWTA renewal fees, amounting to RM904 per renewal, from January 2025 until June 2026 (a period of one and a half years) following continuous engagement and negotiations between the government and the service provider.
“From June until December 2026, employers are given a 20 per cent discount on renewal fees, amounting to RM1,483 per renewal.
“Future discounts beyond December 2026 will be subject to further negotiations,” Gerawat said in a statement today.
He further said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg has directed the government to undertake a study of the current FWTA fee structure in line with its commitment to facilitate economic growth and proactive governance.
“The primary objective of this study is to carefully evaluate the operational impacts on industries heavily reliant on non-resident labour, while ensuring that the overarching goals of modernising, securing and digitalising Sarawak’s labour management ecosystem are maintained,” he added.
While the government undertakes the study and assessment, he urged employers to review their own recruitment cost structures, including checking with relevant foreign consulates or embassies on authorised recruitment agents in workers’ countries of origin to avoid dealing with unauthorised and unscrupulous agents that may contribute to unnecessary costs.
He also encouraged employers to train and familiarise their human resource personnel with the FWTA system so that applications can be submitted directly online, reducing reliance on third-party agencies and minimising agency-related costs.
“All parties need to work together to create an efficient and competitive ecosystem as facilitated by FWTA for the management of non-resident workers,” he said.
According to Gerawat, the FWTA was implemented through a public-private partnership to digitalise the recruitment process for non-resident workers, improve efficiency and transparency, and shorten approval periods following previous complaints over lengthy processing times, without imposing additional costs on taxpayers.
He added that the system also enables the Sarawak government to maintain its own database of non-resident workers and monitor application processes involving both State and federal agencies.
He also noted that the implementation of FWTA has reduced processing time from 197 days under the previous system to an average of 60 days, representing a reduction of nearly 70 per cent.
“Prior to FWTA, employers bore substantial hidden costs, including lost revenue from an additional 137 days of waiting time or worker downtime, repeated administrative travel and visits to government offices, operational uncertainty, and the inability to effectively plan harvest schedules, construction timelines, or production cycles. These delays also resulted in opportunity costs from delayed or missed projects and contracts.
“In reality, the previous system was not cost-free; its costs were simply indirect, unquantified and absorbed by employers,” he said.
He reiterated the State government’s commitment to fostering a competitive and resilient business environment for industries, businesses and investors, adding that any further updates or adjustments to the FWTA fee structure would be announced upon completion of the review and assessment. — DayakDaily
