Due to continuing shortage of foreign workers in various industries, Malaysia’s new government has decided to reimplementation of the Labor Recalibration Program and the establishment of the FWERP was among the matters agreed upon in the special foreign worker management meeting chaired by Prime Minister Datuk Seri Anwar Ibrahim that took place here on Jan 10.

Through the FWERP, employers are allowed to hire foreign workers from 15 source countries, without needing to go through prerequisite hiring and quota qualifications. The plan for relaxation of conditions on migrant worker recruitment covers manufacturing, construction, plantations, agriculture, and services (restaurants only) sector and sub-sectors.

However, employers should not ignore aspects related to labor standards even though relations are grated under the Foreign Worker Employment Relation Plan to expedite the approval of quotas for foreign workers.

All employers and industries have to ensure compliance with the basic aspects of labor standards, such as monthly salary payments to workers, including the minimum wage implementation and contribution to the Social Security Organisation (Socso). Aspects related to labour standards will be monitored by the Department of Labour in Peninsular Malaysia (JTKSM) and the Immigration Department, which will be six to seven month after the quota approval date.

We are here to assist and giving advices on your organization regarding all aspects of the foreign/migrant worker recruitment.

To hire foreign workers, the company first needs to obtain a letter from the Ministry of Human Resources (MOHR) Jabatan Tenaga Kerja Semenanjung Malaysia (JTKSM) confirming that they are not able to hire Malaysian workers.

Part of the process involves putting up a job posting on the JobsMalaysia online portal (replaced by MYFutureJobs on 1 November 2020) to advertise available vacancies to local workers via MOHR’s Foreign Workers Centralised Management System (FWCMS) right after posting the vacancies on MYFutureJobs. In June 2020, however, a 30-day mandatory posting period was added through a cabinet decision. (The approved Labuan, and for Sarawak is the Sarawak State Labour Department)

Through MOHR JTKSM, the company can apply for a foreign worker quota. The Ministry will approve the application if the company meets the relevant criteria. This is typically an online process via the Foreign Workers Centralized Management System (FWCMS). Once the quota is approved, the company needs to pay the workers’ levy*, the relevant insurance policies, and a security bond.

Quota allocation is determined by MOHA based on a list of approved source countries and specific industries in which workers from those countries are allowed to work. Quotas are determined by arbitrary guesstimates based on different industry guidelines. For example, for the plantation sector, guidelines from the Ministry of Plantation Industries and Commodities may indicate 1 foreign worker for every 8 hectares of palm oil plantation, while for the construction sector, guidelines from the Construction Industry Development Board indicate 1 foreign worker for every 3 Malaysians. Meanwhile, in the services sector, 5-star hotels are allowed to hire 1 foreign worker per 12 rooms, while 1-star hotels can hire 1 foreign worker per 30 rooms.

Once the relevant quotas have been approved, the company can begin recruiting. However, this is not an easy process. For companies that require the services of a large number of workers, it is logistically challenging and uneconomical for them to internalize the recruitment process. They will instead enter into a contractual agreement with us (the recruitment outsourcing agency), which will not only help find the migrant worker candidates from the source country but also become the workers’ direct employers.

Once the services of the workers are secured, we will apply for a Visa With Reference (VDR) at the Malaysian Embassy in the source country so the workers can travel to Malaysia.

Upon arrival in Malaysia, the workers have 30 days to undergo medical checkups by the Foreign Workers’ Medical Examination Monitoring Agency (FOMEMA) Sdn Bhd. The medical checkup is usually arranged by the employer.

Once the workers have obtained the medical clearance, the employer can then apply for an employment pass called the Visitor Pass (Temporary Employment), VP(TE), or PL(KS) Pas Lawatan (Kerja Sementara). After receiving the VP(TE) the workers can begin their employment in Malaysia.

Despite this being the formal process, employers can also bypass it through Special Approvals (Kelulusan Khas) from the Ministry of Home Affairs through Ministerial approval and intermediaries. Do give us a call on it if necessary.