By DayakDaily Team
KUCHING, April 21: The proposed implementation of a digital foreign worker recruitment system powered by Artificial Intelligence (AI) technology is still at the evaluation stage and has not been finalised, the Ministry of Human Resources (KESUMA) clarified, amid growing public discussion and media speculation on the matter.
KESUMA stressed that reports suggesting a final decision has been made are inaccurate and do not reflect the Malaysia government’s current position, noting that the initiative is still undergoing detailed review and stakeholder engagement.
The ministry said it has taken note of various media reports and differing interpretations surrounding the proposal, which has led to confusion among the public and industry players.
According to KESUMA, the government is exploring the development of a comprehensive digital platform aimed at improving the foreign worker recruitment ecosystem, including addressing long-standing issues such as recruitment inefficiencies and debt bondage in source countries.
“At present, KESUMA is reviewing and refining all proposals through early engagement sessions with labour-sending countries and industry stakeholders, including the provider of the Foreign Worker Centralised Management System (FWCMS), which has been used for foreign worker management in Malaysia since 2015.
“However, all proposals are still at the evaluation stage and have not been decided upon. No commitments, appointments, or agreements have been made with any party to date,” the ministry stressed in a statement today.
The proposed system would allow employers to directly recruit foreign workers based on actual manpower needs, covering processes such as registration, selection, job matching, contract agreements, and deployment facilitation in source countries. Recruitment costs would be fully borne by employers, thereby reducing reliance on intermediaries and eliminating financial burdens on foreign workers.
KESUMA said the initiative aligns with fair and ethical recruitment principles promoted by the International Labour Organisation (ILO) and could help strengthen Malaysia’s efforts to achieve Tier 1 status in the United States Trafficking in Persons Report by addressing risks linked to forced labour and human trafficking.
However, the ministry clarified that the proposal is limited strictly to post-quota approval recruitment processes in source countries and will not affect existing pre-recruitment mechanisms, including quota approvals, regulatory functions, and enforcement activities under current laws.
“The implementation will be fully subject to KESUMA’s policy and operational control, with integration into existing government systems, including the Foreign Worker Centralised Management System (FWCMS) and the National Integrated Immigration System (NIISe).
“In terms of foreign worker management, the involvement and role of private employment agencies in Malaysia will remain unchanged, as KESUMA views this proposal as a platform that can be used either directly by employers or through licensed private employment agencies to carry out recruitment processes,” it added.
KESUMA also confirmed that discussions are ongoing with labour-sending countries such as Bangladesh, Indonesia and India, as well as industry stakeholders and technology providers, including FWCMS operators.
The ministry noted that the proposal has received positive feedback from key industry groups, including the Malaysian Employers Federation (MEF), the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM), the Malay Chamber of Commerce Malaysia (DPMM), the Malaysian Associated Indian Chambers of Commerce and Industry (MAICCI), and the Federation of Malaysian Manufacturers (FMM), which collectively represent nearly one million members.
“They have also expressed support for the government’s efforts to modernise the foreign worker recruitment system through a digital and technology-driven approach.
“In addition, the Federation of Malaysian Manufacturers (FMM), representing more than 13,300 manufacturing companies, has openly welcomed the proposal, reflecting industry demand for a more transparent and competitive system that reduces reliance on intermediaries and controls recruitment costs,” the ministry said.
KESUMA reiterated that any future decision will be subject to Cabinet approval following comprehensive consultations with relevant ministries, industry stakeholders, and source countries to ensure a balanced and effective system that aligns with national needs and interests.
The government, it added, remains committed to strengthening local talent development as a long-term priority under the 13th Malaysia Plan (13MP), with the goal of gradually reducing reliance on foreign labour while ensuring that industry needs continue to be met. — DayakDaily
