Malaysia’s New Direct Hiring System for Foreign Workers Unveiled

If you intend to seek employment in Malaysia, it is crucial to be informed of an important update. The Malaysian Government is launching a revamped recruitment platform allowing employers to hire foreign labor without intermediary agents.

The objective is straightforward: to cut expenses, minimize exploitation, and ensure transparent job conditions for workers arriving in Malaysia.

Human Resources Minister Datuk Seri Ramanan Ramakrishnan disclosed this plan, first noted by The Malaysian Reserve.

Reasons for Eliminating Intermediaries in Recruitment

For many years, Malaysia has relied on intermediaries for its foreign labor system, leading to several complications.

Foreign workers frequently incur substantial recruitment fees even prior to their arrival. A significant number take loans to cover these costs, forcing them into debt right from the start. Some end up working in positions they never agreed to.

Minister Ramanan highlighted that these concerns have been repeatedly brought up in Parliament and media outlets. The government is now aiming for a significant departure from the agent-based approach.

Direct Communication Between Employers and Workers

With the proposed system, employers would communicate directly with potential workers via a digital platform. Both parties would have a clear view of the job specifications prior to any contracts being signed.

This is crucial because, at present, employers generally engage with agents first. There isn’t a reliable method to verify if the workers completely understand and agree to the employment terms.

Facilitating direct communication is expected to minimize situations where workers arrive in Malaysia anticipating one kind of job but are assigned to another.

Escalating Recruitment Costs

The price of securing employment in Malaysia can be startling.

Minister Ramanan indicated that some workers pay between US$5,000 and US$8,000 prior to their arrival. Such amounts pose grave risks, including indebtedness, human trafficking, and illicit financial transactions.

The International Labour Organisation states that recruitment fees should not exceed the wages of one month. However, the reality is far from this.

Reports reveal that Bangladeshi workers may pay between RM16,000 and RM25,000 to obtain job offers. Nepali workers have allegedly paid as much as RM10,000 for positions as security personnel.

Integrated Virtual Interviews and Translation Services

The forthcoming platform will feature virtual interviews and connect employers directly to workers based on required competencies and job specifications.

Artificial intelligence would facilitate live language translation. An employer could converse in Bahasa Malaysia, and the system would translate into the worker’s language instantly.

This feature is designed to lessen misunderstandings attributed to language differences, which often complicate cross-border recruitment.

Current Procedures for Foreign Workers in Malaysia

To work legally in Malaysia, foreign labor must obtain one of several categories of work visas or permits. Here are the primary types:

1. Employment Pass

The Employment Pass caters to professionals, managers, executives, and skilled personnel. The employer is responsible for sponsoring this pass, which typically requires advanced qualifications and a salary exceeding a specified threshold. The pass can be valid for a maximum of five years and is renewable.

2. Temporary Employment Pass (Categories I, II, III)

These passes are designated for lower-skilled or semi-skilled employment.

• Category I pertains to semi-skilled positions, such as technical roles.
• Category II encompasses unskilled positions with shorter contracts.
• Category III is frequently assigned to plantation, construction, or domestic helper occupations.

These visas are directly associated with the employer and the specific position. When the position concludes, the visa generally expires.

3. Professional Visit Pass

This visa is intended for brief employment, such as project work, internships, or professional services lasting less than 12 months. It is not a long-term work visa, but it permits a foreign individual to work legally for a specified time.

4. ePASS

In 2025, Malaysia revamped its Employment Pass (EP) framework, introducing new digital permits, stricter compliance measures, and increased visa costs. These modifications are designed to draw skilled foreign professionals, enhance transparency, balance local and foreign talent, and expedite processing times.

Government-to-Government Recruitment Approach

Malaysia is also engaging with labor-exporting countries to ensure that the system complies with their legal frameworks and regulations. Issues of sustainability and system capacity are still in development.

The initiative aims to employ a government-to-government approach, completely eliminating private intermediaries. Worker identities, payroll, and documentation would be managed via MyDigital ID.

This proposal is set to be reviewed by the Home Ministry and pertinent stakeholders before it is presented to the Cabinet for approval.

If implemented as scheduled later this year, the platform could represent a significant transformation in how Malaysia recruits foreign manpower. For both workers and employers, this could lead to fewer unexpected outcomes, reduced expenses, and a more reliable system overall.