Two key ministries, MoHR and KDN, have emerged as potential custodians of the foreign labour domain 

by NURUL SUHAIDI 

THE presence of foreign workers has become an integral aspect of Malaysia’s economic landscape through their contributions spanning various industries, from manufacturing to services and domestic sectors. 

However, the management and regulation of this diverse workforce have prompted discussions on the most effective ministry placement to oversee their affairs. 

Two key ministries, the Human Resources Ministry (MoHR) and the Home Affairs Ministry (KDN), have emerged as potential custodians of the foreign labour domain. 

With each ministry bringing unique perspectives and expertise, it raises the question of which one is better equipped to address the multifaceted challenges associated with managing foreign workers. 

MoHR is inherently aligned with labour-related matters, making it a natural contender for overseeing the welfare and rights of foreign workers. 

With its focus on employment policies, industrial relations and workforce development, this ministry holds the potential to tailor the regulations that promote fair treatment, ethical recruitment and the overall well-being of foreign workers. 

On the other hand, KDN, traditionally responsible for matters of security and immigration, introduces a different paradigm to the discussion. 

Duplication of Works 

Malaysian Employers Federation (MEF) president Datuk Dr Syed Hussain Syed Husman said having two ministries share the responsibilities of managing matters related to foreign workers led to duplication of works and confused the employers and the public. 

“It is really difficult to expect two different ministries to work together. It is best that the foreign worker-related matters be placed under the MoHR,” he told The Malaysian Reserve (TMR). 

While emphasising that the MoHR is the appropriate and right ministry to manage all human resources issue, including to deal on matters related to foreign workers, he said placing it under the ministry could enhance efficiency and ultimately improve the management of foreign workers in Malaysia. 

“All laws and regulations related to employment, applicable to foreign workers and enforcement of the related laws are done by MoHR. 

“Thus, it is logical that matters related to foreign workers should be under the custody of the above-mentioned,” he added. 

However, considering that most processes fall under the jurisdiction of KDN while others come under MoHR, he said there are a lot of overlapping functions that lead to inefficiencies in recruitment, employment and repatriation of foreign workers. 

The current inefficiencies were in fact highlighted in the Auditor-General’s Report on the management of foreign workers through the Foreign Workers Integrated Management System (ePPAx) and Foreign Workers Centralised Management System (FWCMS). 

“The FWCMS should be better handled by the government rather than allowing private entities to manage and operate the system,” Syed Hussain said. 

He also highlighted that the employment of foreign workers should be based on human resources needs rather than based on security reasons. 

“It is sad to see instances where businesses have to reject orders as they are not able to deliver due to shortage of workers,” he added. 

Conversely, North South Initiative ED Adrian Priera said it is acceptable to have two ministries managing the foreign workers, but there should be a clarity of task and separation including one lead agency to streamline and avoid conflict of interest and confusion. 

“We want a societal approach in all of the government’s approaches, meaning there is a time to collaborate and exchange data. However, there must always be one leading agency,” he said to TMR. 

He also said MoHR should stick to being in charge of tasks involving number or quotas and recruitment, while KDN for the human security and the immigration aspects. 

“However, the work permits and the contract all should be monitored by MoHR and there should be clarity in that,” he added. 

Due to the nature of employee recruitment which can be lucrative, he also saw some competition within the ministries, hence they need to streamline to avoid conflicts of interest, acknowledging that some parties illegally profiteer from recruitments. 

To address this, Priera opined that while the management of workers is always under MoHR, there should be an additional lead overarching agency under the Prime Minister’s Department, for recruitment and monitoring. 

“There should be an independent committee to function as an ombudsman to audit and monitor the system in case there are people trying to profiteer and manipulate the system. 

“There have been various reports that special approvals are being given to foreign workers,” he added. 

From the civil society perspective, Priera expected an overhaul of the whole system, because the foreign labour issue is not just about permits, but across social interaction, health and overall welfare. 

“We need a comprehensive policy, a law that gives equality to all workers including foreigners and refugees, who may be subjected to forced labour conditions,” he said. 

Comparison Between the 2 Ministries
On figure comparisons, Syed Hussain argued that the mandate to manage issues related to the recruitment, employment and repatriation of foreign workers should be given to ministries, not individual ministers. 

“Nonetheless, MoHR is the ideal ministry to handle the tasks,” he said. 

Sharing similar views, Nusantara Academy for Strategic Research senior fellow Dr Azmi Hassan said in terms of recruitment, both should work together and not in silos. 

“I think both ministries must work together to ensure that foreign workers are not abandoned, taken advantage of or scammed when they are in the country,” he told TMR. 

Despite that, he believed that on paper, MoHR should be in charge as it is already dealing with such issues. He added that MoHR should continue to focus on improving its roles in the immigration and security aspects. 

Strengthen Enforcement 

Despite the promise of high-paying jobs and good working conditions, many foreign workers still fall into fraudulent recruitment practices, and end up in exploitative situations. 

Syed Hussain said the issue of foreign workers brought in but not given a job is an isolated issue, since most employers who have applied for foreign workers have utilised the number of foreign workers brought in. 

“It is not a question of enforcement but the government needs to be more flexible when dealing with cases where employers are genuinely not able to provide work to the foreign workers due to ups and downs of businesses,” he told TMR. 

He suggested that better mechanisms are needed to assist employers facing such difficulties. 

Meanwhile, for the foreign workers already in the country, suitable mechanisms must be in place to fully utilise them rather than just repatriating them and penalising the employers. 

“In such cases, mechanisms need to be put in place to redeploy them to other sectors and employers that need them. It is a win-win solution,” Syed Hussain added. 

Additionally, mechanisms are also needed to obtain the voluntary agreement of the workers involved to work in other sectors and with other employers. 

An equitable formula needs to be drawn up where the first employer that brings in the foreign workers but is not able to provide jobs should be compensated by the second employer for the costs incurred in bringing in the foreign workers. 

The costs of hiring foreign workers can be very expensive, between RM20,000 and RM25,000 per worker. 

Nonetheless, Priera opined that while those committing human trafficking should be punished, Malaysia must also improve the loopholes in the system and engage labour inspectors to train the workers. 

“Instead of spending resources on raids and doing unnecessary harassment to migrants, that human resource should be empowered with the knowledge,” he said. 

Currently the government is mooting a penalty of RM30,000 on employers who fail to provide work to foreign workers. 

A Unified System 

Syed Hussain highlighted the importance of developing systems that simplify the processes and facilitate the recruitment of foreign workers. 

Considering most processes fall under the jurisdiction of MoHR, MEF believes that all matters related to foreign workers’ recruitment, employment and repatriation should be placed under one roof to streamline the process. 

MEF also believes that it is critical for the government to determine a single ministry to be fully responsible for managing both the ePPAx and FWCMS. 

“This is to avoid duplication of work and give a clear message to the employers as well as the public as to the particular ministry to deal with when it comes to foreign labour,” he said. 

He added that the development of an integrated end-to-end single online system to administer all aspects of foreign workers management is a right move. 

“However, the system should be fully online with minimal human intervention,” he opined. 

Meanwhile, Priera said to reach its objectives, an integrated end-to-end single online system should focus on the government-to-government (G2G) in the long run without intermediaries or agents. 

“In this age of digitalisation, it is possible and automation can be done, the problem is there are too many actors who want to profit and obtain special approvals, that is why it is failing,” he added. 

Currently, under the 12th Malaysia Plan (12MP), the country is to limit the presence of foreign workers not more than 15% and this, according to Priera, can be a difficult task since foreign workers are hired to do dangerous and difficult jobs which the locals are reluctant to take up. 

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• This article first appeared in The Malaysian Reserve weekly print edition