KESUMA: Direct Hiring of Foreign Workers Still Under Study
Kuala Lumpur, April 21, 2026 — Malaysia’s Ministry of Human Resources (KESUMA) has clarified that the proposed system allowing employers to directly recruit foreign workers remains under review and has not been finalised.
In a media statement issued today, the ministry said it is aware of various media reports and public discussions surrounding the proposal, but noted that differing interpretations have led to confusion. KESUMA stressed that any claims suggesting a final decision has been made are inaccurate and do not reflect the government’s actual position.
The ministry revealed that its ongoing review of the foreign worker recruitment ecosystem identified significant gaps, particularly in source countries. Among the key concerns is the issue of debt bondage, where workers are burdened with high recruitment costs.
To address these challenges, KESUMA is exploring the development of a digital platform powered by artificial intelligence (AI). The proposed system aims to streamline and improve the recruitment process by enabling employers to directly hire foreign workers based on actual labour demands. It would cover end-to-end processes, including registration, candidate selection, job matching, contract approval, and worker deployment.
Under this model, recruitment costs would be fully borne by employers, reducing reliance on intermediaries and ensuring that foreign workers are not subjected to financial burdens.
KESUMA said the approach aligns with international labour standards set by the International Labour Organization (ILO) and could help address issues related to forced labour and human trafficking. It may also support Malaysia’s ambition to achieve Tier 1 status in the United States Trafficking in Persons Report.
However, the ministry emphasised that the proposal would only apply to post-quota approval processes in source countries and would not disrupt existing pre-recruitment procedures such as quota approvals and enforcement mechanisms.
From an operational standpoint, the system would be fully regulated by KESUMA and integrated with existing government platforms, including the Foreign Worker Centralised Management System (FWCMS) and the National Integrated Immigration System (NIISe). The role of private employment agencies is expected to remain, as the platform could be utilised either directly by employers or through agencies.
At present, KESUMA is conducting further assessments and refining the proposal through engagement sessions with key stakeholders, including source countries, industry players, and technology providers. The ministry reiterated that no agreements, commitments, or appointments have been made at this stage.
The proposal has received positive feedback from major labour source countries such as Bangladesh, Indonesia, and India, as well as industry bodies including the Dewan Perniagaan Melayu Malaysia (DPMM), Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM), Malaysian Associated Indian Chambers of Commerce and Industry (MAICCI), and the Malaysian Employers Federation (MEF). The Federation of Malaysian Manufacturers (FMM), representing over 13,000 companies, has also expressed support, citing the need for a more transparent and efficient system.
KESUMA reaffirmed its commitment to ensuring that any reforms to foreign worker recruitment are implemented transparently, ethically, and in line with national interests. At the same time, the government will continue strengthening local talent development as a long-term strategy to reduce dependence on foreign labour, in line with the 13th Malaysia Plan (RMK-13).
Source : Facebook Kesuma
