By Shikin Louis
KUCHING, Dec 1: The RM1,854 fee imposed on employers for hiring foreign workers in Sarawak is not merely a processing charge but a cost recovery mechanism for a comprehensive ecosystem under the Foreign Workers Transformation Approach (FWTA), Minister in the Premier’s Department Dato Sri John Sikie Tayai clarified today.
Responding to a query from the Bukit Assek assemblyman Joseph Chieng Jin Ek during the Sarawak Legislative Assembly (DUS) sitting, Sikie said digitalisation is only one segment of a much larger ecosystem aimed at bringing integrated services “right to the doorstep” of employers and foreign workers.
Sikie noted that the entire FWTA project is implemented through a Public-Private Partnership (PPP) model, with all capital development fully financed by the private sector.
“The fees collected are used to enhance and upgrade the various components of the ecosystem, which require substantial initial investment such as the development of facilities (ILCs), the FWTA platform, and related services. These investments are intended to help employers reduce their operational costs in managing the hiring of foreign workers.
“Therefore, the investment incurred must be recovered through a reasonable fee structure, charged to employers who hire foreign workers for their operations and projects in Sarawak,” he explained.
He added that based on a Cost and Benefit Analysis (CBA) verified by relevant State agencies, the appropriate fee to recover the investment is RM1,854 per foreign worker hired.
“It must be emphasised here that this fee covers the cost for preparing, providing and maintaining all the necessary infrastructure and infostructure throughout the State in order to deliver the services to employers in hiring foreign workers and again not merely the cost for processing fees associated in the issuance of Approval in Principle (AP), Labour License, Visa Dengan Rujukan (VDR), Medical Screening, and issuance of Non-Sarawakian Identity Card (NSIC).
“I trust this explanation will clarify the misconception that the costs incurred are purely for the processing fees in the application for foreign workers,” he asserted.
During the debate session on the Sarawak Budget 2026, Chieng raised concerns over the financial burden posed by the new FWTA system — SANSOLS, particularly on sectors heavily dependent on foreign labour such as plantation, manufacturing and shipbuilding.
While welcoming the government’s push towards digitalisation to improve transparency and efficiency, he noted that the newly introduced application fee of RM1,854 — totalling RM2,002.30 after service tax, marked a significant increase compared to the previous system, which carried no system charges.
With all applications for Non-Resident Employees (NRE) required to transition to SANSOLS starting Aug 10, 2025, Chieng requested the Ministry to review and reduce the SANSOLS fee structure as well as ensure that the new system truly accelerates approval efficiency, reduces waiting time and improves user experience.
“Digitalisation should uplift business competitiveness, not become an added burden.
“I trust that the Ministry will consider these feedbacks for a more balanced and business-friendly implementation,” Chieng emphasised. – DayakDaily
