The Malaysian government plans to introduce a new digital platform that would allow employers to hire foreign workers directly, bypassing private recruitment agents that have long dominated the system.
The initiative, disclosed by Malaysia’s Human Resources Minister, Datuk Seri Ramanan Ramakrishnan, is aimed at cutting recruitment costs, curbing worker exploitation, and improving transparency in the country’s foreign labour market.
The Malaysian Reserve first reported the development.
Malaysia relies heavily on foreign labour across key sectors such as construction, manufacturing, plantations, and services. However, the recruitment process has for years been mediated by agents and middlemen, a model that authorities now admit has created systemic problems.
According to the minister, foreign workers are often forced to pay exorbitant recruitment fees even before leaving their home countries.
Many take out loans to cover these costs, leaving them trapped in debt from the moment they arrive in Malaysia. In some cases, workers reportedly end up in roles that differ significantly from what they were promised.
Ramanan noted that concerns over recruitment abuses have been repeatedly raised in Parliament and by civil society groups, prompting the government to seek a decisive shift away from the agent-driven system.
Under the proposed platform, Malaysian employers would be able to connect directly with prospective foreign workers through a centralised digital system. Job descriptions, wages, and employment conditions would be clearly displayed and agreed upon before any contracts are signed, reducing the risk of misrepresentation.
