The Workers Rights 
Malaysia has lifted the sweeping ban on the recruitment of foreign workers by opening applications for fares from a wide range of priority sectors. The key modifications come in a centralized digital process managed centrally by the KESUMA via the FWCMS eQuota module.
The new system eliminates the need for manual, paper filing or disorganized case-by-case applications by employers. Rather, businesses may sign up, upload paperwork, offer labor justifications and track their methods utilizing the digital platform.
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The administrative quota process has been taken over by the KESUMA, who will now administer the process in FWCMS, while the Ministry of Home Affairs (KDN) will take care of the security screening and issuance of visas and entry clearance.
A digital inter-agency review was set up which includes KESUMA, KDN and the Department of Labour and Immigration authorities and replaces the former physical-based One-Stop Centre (OSC) process. This will be to make the hiring process easier.
Step-by-Step Hiring Process
Employers need to adhere to the local recruitment process, which includes 14 days advertising and obtaining a Section 60K clearance from the Department of Labour.
Then, the company will be able to submit its FWCMS eQuota application including the corporate detail application and justification for the sector, along with proof of compliance with Act 446. Once digital reviewed, approved employers will be issued with the related quotation documentation, along with the Demand Letter.
Foreign workers then undergo a medical examination in the FOMEMA, much closer to home, and CLT’s sign an employment agreement that has been approved. The Immigration system processes the Visa with Reference (VDR), and then the VP(TE) is issued after completing the necessary medical testing after arrival.
Key Compliance Requirements for Employers
Under the structure specified in the provided data, 15% of workers will be foreign labourers. This includes certified accommodation that conforms to the standards in the Workers’ Minimum Standards of Housing and Amenities Act 1990 laid down by employers.
The annual statutory levies in the manufacturing, construction and services sector are RM1,850 per worker, while in plantation and agriculture are RM640 per worker. The employers or licensed representatives are also required to receive the workers who arrive at KLIA Terminal 1 or 2 within 6 hours after they arrive.
What Does the Digital Shift Means?
The FWCMS eQuota model options provide the employer with a single point of nomination and status tracking and less reliance on manual submission. Documentation, and preparation in advance for compliance, will continue to be vital onboarding tools for HR teams and labour-intensive businesses.
FAQs
What is the FWCMS eQuota system in Malaysia?
It’s an application to manage the application of foreign worker quotas via KESUMA.
Is there no longer any restriction on foreign workers in Malaysia?
Quota applications re-opened for priority sectors, however employer compliance (workforce ceilings) still exists.
Does Act 446 housing need to be provided?
Yes. The employers are required to furnish housing for the workers in strict accordance with the requirements of Act 446.
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