Malaysia is working on a new direct hiring platform that would allow employers to recruit foreign workers without using third-party agents, in a move aimed at reducing exploitation and cutting recruitment costs, according to a report by The Malaysian Reserve.
Human Resources Minister Datuk Seri Ramanan Ramakrishnan said the proposed system, which is still being fine-tuned, will be discussed with the Home Ministry and key stakeholders before being presented to the Cabinet for approval. The plan seeks to address long-standing issues linked to labour agents and middlemen in Malaysia’s foreign worker recruitment process.
Ramanan said dependence on intermediaries has exposed foreign workers to practices such as excessive recruitment fees, debt bondage and elements of modern slavery. “The issue has been raised repeatedly in Parliament and highlighted in the media. We want to eliminate the middlemen problem,” he said, as quoted by The Malaysian Reserve.
Employers, workers to connect directly
Under the proposed system, employers would be able to communicate directly with prospective foreign workers, allowing both sides to clearly understand employment terms before recruitment. Ramanan said this would help prevent situations where workers are promised one job but given another after arriving in Malaysia.
“Currently, employers have to speak to the agents first. The issue is that we don’t know whether the worker truly agrees to the terms of employment,” he said, as quoted by The Malaysian Reserve.
High recruitment fees flagged
Ramanan said the new system is expected to be ready later this year and is aimed at protecting workers from being charged high recruitment fees. Some foreign workers reportedly pay between US$5,000 and US$8,000 before arriving in Malaysia, he said, adding that this contributes to social problems, human trafficking and money laundering.
He noted that the International Labour Organisation maintains that recruitment fees should not exceed one month’s wages for foreign and domestic workers. Industry data and published reports indicate that Bangladeshi workers may pay between RM16,000 and RM25,000 to secure jobs in Malaysia, while Nepali workers have reportedly paid up to RM10,000 for security guard positions.
Platform to use virtual interviews, AI
The proposed platform is expected to match employers with suitable foreign workers based on job requirements, with virtual interviews forming part of the hiring process. Ramanan said artificial intelligence would be integrated for real-time translation to address language barriers.
“An employer can speak in Bahasa Malaysia and the system will translate it into the worker’s mother tongue,” he said.
Discussions are also ongoing with labour-source countries to ensure the system aligns with their legal and regulatory frameworks. Ramanan added that sustainability and system capacity are key considerations as Malaysia works toward its goal of becoming an ASEAN ethical recruitment hub by 2028.
According to The Malaysian Reserve, the system is expected to adopt a government-to-government approach with no involvement of third parties, with MyDigital ID playing a central role in worker identification, salary crediting and administrative processes.