Employers must prioritise locals before hiring foreign workers, says Ramanan

 

The Human Resources Ministry will prioritise Malaysians in the job market, requiring employers to seek local workers through the MyFutureJobs portal before recruiting foreign labour.

Human Resources Minister R Ramanan said the move was part of efforts to reduce reliance on foreign workers, as the government prepares to raise the minimum wage to RM2,000 a month from June 2027.

The increase is expected to benefit more than four million workers, while micro, small, and medium enterprises (MSMEs) with annual sales revenue below RM50 million will be given time to adjust.

“For MSMEs with sales revenue below RM50 million, we need to give them time to adjust,” he said when winding up the debate on the Supply Bill 2027 for his ministry at the policy stage in the Dewan Rakyat today.

Ramanan said the increase would be implemented in phases for the specified group of MSMEs, taking into account their financial capacity while ensuring workers were paid according to their skills and qualifications.

On a proposal to introduce different minimum wage rates for local and foreign workers, he said the matter required a comprehensive review, particularly of its domestic legal implications and compliance with international conventions.

He added that foreign worker recruitment was currently restricted to six main sectors and their permitted sub-sectors, subject to strict criteria and approval conditions.

Gig worker income and support

The government aims to finalise a mechanism for calculating minimum incomes and setting protection standards for gig workers by early 2027, Ramanan said.

He said the formula was being developed based on a comprehensive study involving 13 engagement sessions, 14 focus group discussions, 37 in-depth interviews with 1,962 platform workers, an analysis of 487,805 service transactions, and comparisons with practices in 42 countries.

“These findings will be translated into a minimum income rate formula that considers income adjustments such as inflation, Poverty Line Income, Basic Expenses for Decent Living, median wage, minimum wage, and household income, as well as operational costs such as vehicle insurance, road tax, and maintenance costs,” he said.

On financial support for e-hailing and p-hailing riders, Ramanan said the government had established a RM160 million initiative through a collaboration between the Human Resources and Finance ministries.

Half of the allocation would be borne by the government and the other half by platform companies, with Grab currently serving as a pilot project, he added.

On Social Security Organisation contributions for gig workers registered with multiple platforms, Ramanan said companies coordinated contributions through a single integrated account to prevent double deductions.

- Bernama