Immigration's labour quota system manipulated by syndicate, sources claim

 

A syndicate allegedly involving Immigration Department insiders and agents linked to a restaurant owners' association is suspected of manipulating the department's migrant worker quota system to bring in labour beyond approved limits.

According to sources, the syndicate's activity was uncovered recently when the department cross-checked the Malaysian Immigration System (MyIMMS) data against actual documents issued to restaurant operators by its Foreign Worker Division.

It found a big anomaly between the real status of migrant workers in MyIMMS and the issued documents.

A further investigation then revealed a sinister plot exploiting a government policy that allows employers to replace migrant labour who have permanently returned to their home countries.

According to the Home Ministry's policy, replacement quotas are approved on a case-by-case basis and only for migrant workers who have returned to their home countries with a Check Out Memo (COM) issued after 2023.

However, the syndicate is believed to be using corrupt immigration officers to manipulate the system by changing the COM date for workers who returned before 2023, thus enabling their employers to apply for a new quota.

In addition, immigration found that the syndicate also altered data on MyIMMS, changing workers' employment status.

'Status manipulation'

Through this manipulation, the worker's employment status is altered to make it appear as though they had been employed by another employer (Employer B) from the outset instead of their actual company (Employer A).

Employer B would then submit an application for a replacement quota, claiming that the worker belonged to them and had returned to their home country.

Based on the altered records, the Immigration Department's Foreign Workers Division would issue an official confirmation letter.

Investigations found significant discrepancies between the worker's actual status in the MyIMMS system and the information contained in the physical confirmation letters issued by the division.

For example, one restaurant operating in Kuala Lumpur had only five migrant workers eligible for replacement quotas based on MyIMMS records.

However, a confirmation letter issued by the immigration's Foreign Workers Division dated May 8, 2026, stated that the restaurant was entitled to replacement quotas of 18 workers.

Meanwhile, a restaurant in the northern region of Peninsular Malaysia had 609 migrant workers recorded in the MyIMMS system and applied for replacement quotas for 15 workers.

However, the Immigration Department records showed that 14 of the 15 workers had returned to their home countries before 2023 and were therefore ineligible for replacement quotas, while the remaining workers had never been employed by the restaurant.

A third case involved a restaurant with three outlets in the Klang Valley that received a confirmation letter dated March 30 this year approving 30 replacement quotas.

However, a system search found that almost all the workers listed had never been employed by the restaurant.

Sources believed the syndicate has raked in hundreds of thousands of ringgit from the activity.

Industry players’ involvement

Meanwhile, a highly placed source in the Immigration Department claimed that industry players in the restaurant business played a big role in the syndicate.

According to the officer, over 300 restaurants have received migrant worker replacement quotas within the past six months.

"And most of them got it through the same modus operandi," the source said.

Malaysiakini's checks found that the alleged abuse of MyIMMS was extensive and not a mere isolated incident.

Most of the agents involved in the syndicate are allegedly linked to a restaurant owners' association, which is also one of the stakeholders involved in formulating policies at the Human Resources Ministry.

When contacted, the association said it had no knowledge about the alleged manipulation of migrant worker quotas, which is said to involve its members.

"However, if there is credible and compelling evidence to support the allegations involving any of our members, we view the matter with the utmost seriousness.

"We fully support and respect the authorities to conduct a thorough, independent, and transparent investigation into any such allegations," said the association's president, who requested that Malaysiakini not disclose his name to the public.

He added that the association, which has more than 7,000 members nationwide, would not protect any member if they are found breaking the law.

"Any individual found to be involved must be held accountable in accordance with due process and Malaysian law.

"The association remains committed to upholding the principles of good governance, accountability, transparency, and the highest standards of integrity in representing the interests of our members and the industry," he said.

Systemic corruption

Meanwhile, interviews with industry players also revealed what appears to be systemic corruption.

It was said that restaurant operators who want to get the replacement quota must pay about RM2,000 for each approval.

One restaurant operator admitted that he had felt compelled by circumstances to use the syndicate's services.

The operator said he did so because he could not find a solution to his labour shortage problem. This was despite having exhausted all avenues through the proper channel.

"When we went there, the immigration officers accepted our application and said they would call us for an interview.

"But nothing happened. So, we were forced to use agents like these to obtain approval," he said.

Malaysiakini has contacted the Immigration Department and the Home Ministry for their response regarding the allegations of misconduct, data manipulation, and breaches of the department's internal integrity system. - Mkini