Kuala lumpur: The Federation of Malaysian Manufacturing (FMM) has urged the Ministry of Human Resources (KESUMA) to ensure a smooth transition to the newly centralised foreign worker management system while using the platform to implement the Multi-Tier Levy Mechanism (MTLM).
According to BERNAMA News Agency, FMM president Jacob Lee Chor Kok emphasized that the transition should be supported by clear operational guidelines, sufficient system capacity to handle application volumes, and continuous engagement with industry associations to prevent new bottlenecks. He highlighted the importance of building upon the newly consolidated Foreign Workers Centralised Management System (FWCMS)/eQuota single-window platform for future improvements in the digital recruitment ecosystem.
Lee pointed out that the consolidation of foreign worker quota processing under KESUMA provided the ideal opportunity to operationalise MTLM, which FMM has consistently advocated for. The mechanism, he said, should replace rigid administrative caps and sectoral ratios with a structured, demand-driven approach, allowing companies to hire based on genuine operational needs, with tiered levies aimed at incentivising automation and reducing dependency on foreign labour.
Under FMM's proposal, companies with foreign workers constituting no more than 10 to 15 per cent of their workforce should be eligible for preferential levy rates, potentially below the current RM1,850 rate. Firms with higher dependency may pay progressively higher levies under a transparent formula with adequate advance notice. Lee stressed that the mechanism must recognize the unique needs of different industries, particularly export-oriented manufacturing where operational and semi-skilled workers are essential.
He stated that MTLM should serve as an economic and industrial transition tool rather than a restrictive policy, with levy proceeds directed towards automation, workforce development, and productivity support, especially for small and medium enterprises (SMEs).
The Cabinet's decision on July 1 to place the One-Stop Centre (OSC) for foreign worker management fully under KESUMA took effect on July 6, requiring all foreign worker quota applications to be submitted exclusively through the eQuota module of the FWCMS, thus discontinuing manual case-by-case processing.
Welcoming the move, FMM described it as a long-awaited reform that would streamline Malaysia's foreign worker recruitment process and address longstanding concerns over fragmented approval procedures involving multiple agencies. The federation also expressed its commitment to continue collaborating with KESUMA and relevant agencies to ensure effective implementation of the reform while addressing issues affecting manufacturers' access to foreign workers.