Malaysia is preparing to introduce a new digital hiring platform that will allow employers to recruit foreign workers directly, removing the role of private recruitment agents. The initiative aims to lower hiring costs, reduce worker exploitation, and bring greater transparency to the country’s foreign labor recruitment system.
Human Resources Minister Datuk Seri Ramanan Ramakrishnan said the proposed platform is designed to curb excessive recruitment fees and ensure that foreign workers fully understand their job terms before traveling to Malaysia. He noted that the current system heavily relies on intermediaries, which often results in workers being misled or financially burdened.
At present, many foreign workers depend on private agents to secure employment in Malaysia. These agents frequently charge high placement fees, forcing workers to take loans and arrive in the country already burdened with debt. Authorities believe this creates conditions that make workers vulnerable to exploitation.
Under the new system, employers and job seekers will connect directly through an online platform. The platform will feature virtual interviews and AI-powered translation tools to help overcome language barriers between employers and foreign workers from different countries.
Officials hope the system will reduce cases where workers arrive in Malaysia only to discover that job conditions differ from what they were promised. By allowing direct communication, the government aims to ensure greater clarity and accountability on both sides.
According to government officials, recruitment fees in some cases range from US$5,000 to US$8,000, far exceeding international labor standards. Global guidelines recommend that recruitment fees should not exceed one month’s wages, a benchmark often violated under the current model.
The Malaysian government is also in talks with labor-source countries to introduce a government-to-government recruitment framework. This approach would further strengthen transparency and ensure legal compliance throughout the hiring process.
Worker records and identity verification will be managed through Malaysia’s MyDigital ID system, providing an added layer of security and data accuracy. The proposal will undergo further consultations before being presented to the Cabinet.
If approved and implemented later this year, the platform could significantly reshape Malaysia’s foreign worker recruitment system, making it cheaper, safer, and more transparent for all stakeholders.
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