Industry players concerned, sceptical of proposal for new migrant worker system

 

The government is reportedly considering a new digital system to manage migrant workers, which industry sources claim will be called The Universal Recruitment Advance Platform (Turap).

Sources said the proposal is to improve the recruitment ecosystem, which is mired in high costs and poor worker welfare.

However, industry players are sceptical about whether the new system will bring genuine changes or merely add another layer to the existing systems.

The Association of Employment Agencies Malaysia (Papa), which represents over 700 private employment agencies, voiced concerns over the proposed end-to-end recruitment process if the licensed agencies are sidelined.

Papa vice-president Suresh Tan said the migrant worker recruitment process is complex, involving documentation, medical check-ups, visas, and training.

“Who will bear the risk and advance these logistical costs? If a worker is found unfit or absconds, who will be responsible for compensating the employer or getting a replacement?” he said to Malaysiakini.

Touching on international practices, Tan argued there is a misinterpretation of digital platform recommendations made by bodies like the International Labour Organization (ILO) and the International Organization for Migration (IOM).

He said those recommendations focus more on monitoring rather than direct recruitment.

For the record, ILO principles generally advocate that recruitment costs should not be borne by workers to prevent risks of debt bondage and exploitation.

Failure of G2G models

Tan also pointed to Malaysia’s experience with government-to-government (G2G) approaches, claiming it faced numerous implementation challenges.

“Malaysia has tried G2G systems for migrant labour since 2007. It clearly failed because bypassing licensed agencies in source countries can be seen as human trafficking, as those countries’ laws require their citizens to be sent through legal channels.

“Without agencies, there is no accountability if migrant worker welfare violations occur,” he added.

Tan proposed developing a digital system that connects licensed agencies between Malaysia and source countries.

“A transparent and competitive system is the key for Malaysia to achieve Tier 1 status in the Trafficking in Persons (TIP) report, not adding to the existing bureaucracy,” he emphasised.

The TIP report is published annually by the US government. Malaysia has mostly been in Tier 2 for the past 10 years, but dropped to Tier 3 in 2021 and 2022.

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Hefty fees for employers

Meanwhile, two sources from the Immigration Department claimed that employers could be charged up to US$1,000 (RM4,000) if the new system is implemented.

This amount reportedly includes airfare for the migrant workers but does not account for other possible costs, such as processing fees.

“There are claims this system could charge a service fee equivalent to one month of a worker’s salary,” the source said.

Currently, there are no official details regarding the cost structure or fee rates from the authorities.

At present, migrant worker management relies heavily on the Foreign Worker Centralised Management System (FWCMS), operated by Bestinet Sdn Bhd.

Despite being privately operated, as of Dec 31, 2025, the government has paid over RM381 million to Bestinet to manage 2.35 million passes through 11 main modules - including eQuota, bio-medical system (BMS), and eRecruitment.

Simultaneously, the government is developing the National Integrated Immigration System (NIISe) through Heitech Padu Bhd, with a contract worth about RM1.01 billion.

NIISe is a “mega” system designed to replace the 20-year-old MyIMMs system, focusing on biometric technology and facial recognition at national entry points.

Home Minister Saifuddin Nasution Ismail previously said the integration of these systems is being planned in the near future.

Questioning need for a third system

Against this backdrop, the proposed Turap system has led industry players to question potential overlaps and the need for additional investment.

“We already have two systems costing billions. Why do we need another? What is the government’s motive?

“If you want to conduct online interviews to prevent corruption, why not just implement it under the existing systems?” asked a source from the Human Resources Ministry.

“If FWCMS focuses on permits and quotas, and NIISe on border security and passports, Turap seems to focus on a ‘zero agent’ concept through direct recruitment - with proposed fees reaching US$1,000 per worker.

“This raises a major question: why spend hundreds of millions of ringgit more on a new system or integration when FWCMS already has an eRecruitment module that could be empowered instead?” the source added.

Several local licensed agents told Malaysiakini that any increase in recruitment costs could hit small and medium enterprises (SMEs) hard.

They also questioned the new system’s feasibility if it limits the employers’ ability to choose which platform to use when hiring workers.

“While this fee is said to be ‘all-in’, it is still high compared to the current official recruitment system. If this system becomes mandatory, it closes off cheaper options for employers,” one agent said.

The claim that system operators could charge a “one-month salary” fee was also described as “absurd”.

“If the minimum wage is RM1,500, and an employer has to pay RM4,000 (US$1,000) plus RM1,500 (processing fee), the upfront cost for a single worker hits nearly RM6,000 before even considering levies and other insurance,” the agent noted.

To date, the Human Resources Ministry has not issued an official statement regarding the proposed system, its final costs, or the implementation timeline.

Malaysiakini has reached out to the ministry for comment but has yet to receive a response. - Mkini