MAICCI WELCOMES PROPOSAL FOR DIRECT HIRING OF FOREIGN WORKERS

KUALA LUMPUR, Feb 5 (Bernama) -- The Malaysian Associated Indian Chambers of Commerce and Industry (MAICCI) has welcomed the Human Resources Ministry’s proposal to introduce a direct hiring system for foreign workers, describing the move as a timely reform to address longstanding structural challenges faced by labour intensive industries.

Its president Datuk Seri N. Gobalakrishnan said the ministry’s announcement signals a more practical approach to manpower management, particularly for sectors heavily dependent on foreign labour such as construction, renovation, food services, catering and hospitality.

He noted that many employers continue to face mounting pressure from illegal manpower operators and unauthorised agents who impose excessive charges on foreign worker applications, even before workers arrive in Malaysia, significantly increasing business costs.

“While Malaysia aspires to build a resilient and future ready economy, the reality faced by employers on the ground is far more fragile. Many businesses are operating within a recruitment ecosystem that is volatile, costly and increasingly unsustainable,” he said in a statement today.

Gobalakrishnan added that for labour intensive sectors, access to a reliable, transparent and lawful foreign workforce has become a systemic issue that directly affects project quality, delivery timelines and overall business sustainability.

Meanwhile, MAICCI Women’s Wing chief Hemala AP Sivam said employers typically incur substantial upfront expenses for each foreign worker, including levies, airfare, medical examinations and administrative fees.

She said these investments are often jeopardised when workers abscond or are poached by illegal subcontractors offering marginally higher daily wages.

Hemala also highlighted that high recruitment fees and hidden charges further increase operating costs, while many workers arrive in Malaysia already burdened by recruitment debts incurred in their home countries.

“These challenges are compounded by frequent changes in government quotas, sudden freezes and reopenings of hiring windows, as well as revisions to levy structures, all of which make long-term manpower planning extremely difficult for businesses,” she added.

Human Resources Minister Datuk Seri R. Ramanan was reported to have said Malaysian employers will soon be able to hire foreign workers directly as part of efforts by the ministry to eliminate middlemen from the recruitment process. 

He said the proposed hiring platform, which is being fine-tuned, will be discussed with the Home Ministry and relevant stakeholders, before being presented to the Cabinet for approval.

-- BERNAMA