Malaysia Moves to End Agent-Led Foreign Worker Recruitment with New Digital Hiring System

The Malaysian government has announced plans to roll out a centralised digital platform that will allow employers to recruit foreign workers directly, effectively phasing out private recruitment agents from the process.

The initiative, disclosed by the country’s Human Resources Minister, Datuk Ramakrishnan, is part of broader efforts to curb rising recruitment costs, strengthen transparency, and tackle long-standing abuses in Malaysia’s foreign labour system.

For years, the recruitment process has been dominated by intermediaries, a structure the government says has left many migrant workers vulnerable to exploitation. Authorities note that prospective workers are often forced to pay excessive fees in their home countries, pushing many into debt even before arriving in Malaysia.

Officials say these debts have, in some cases, trapped workers in unfair employment situations, including being assigned to jobs that differ from what they were initially promised. Such practices, the minister explained, have drawn repeated criticism from lawmakers, labour advocates, and civil society organisations.

Under the proposed system, employers will be required to engage directly with foreign job seekers through the government-managed platform. Details such as job roles, salaries, and working conditions will be clearly stated upfront and agreed upon before contracts are finalised.

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The government believes the platform will simplify recruitment, reduce opportunities for abuse, and improve oversight of foreign labour inflows. It is also expected to significantly lower the financial burden on migrant workers while giving employers a more efficient and accountable hiring process.

While an official launch date has not yet been announced, authorities say work on the platform is ongoing, with assurances that stakeholder consultations will continue ahead of full implementation.