Malaysia Plans to Launch New Direct Hiring System for Foreign Workers

If you are planning to work in Malaysia, here is an important piece of information you need to know. The Malaysian Government is preparing a new hiring platform that would let employers recruit foreign workers directly, without using private agents.

The goal is simple: lower costs, fewer abuses, and clearer job terms for workers coming to Malaysia.

Human Resources Minister Datuk Seri Ramanan Ramakrishnan shared the plan, with The Malaysian Reserve first reporting on it.

Why Malaysia Wants to Cut Out Agents

Malaysia’s foreign worker system has relied heavily on middlemen for years. That dependence has created problems.

Foreign Workers often pay huge recruitment fees before they even arrive. Many borrow money to do this, which pushes them into debt from day one. Some end up in jobs they never agreed to.

Minister Ramanan said these issues have been raised again and again in Parliament and the media. The government now wants a clean break from the agent-driven model.

Employers and Workers Would Speak Directly

Under the proposed system, employers would contact workers directly through a digital platform. Both sides would see the job details clearly before anything is signed.

This matters because today, employers usually deal with agents first. There is no real way to know if the worker fully understands or accepts the job terms.

Direct contact should reduce cases where workers arrive in Malaysia expecting one role but end up in a different job.

Recruitment Fees Have Become Dangerously High

The cost of getting a job in Malaysia can be shocking.

According to Ramanan, some workers pay between US$5,000 and US$8,000 before arrival. That kind of money creates serious risks, including debt bondage, human trafficking, and illegal money flows.

The International Labour Organisation says recruitment fees should not exceed one month’s wages. Reality looks very different.

Reports suggest Bangladeshi workers may pay RM16,000 to RM25,000 to secure jobs. Nepali workers have reportedly paid up to RM10,000 for security guard roles.

Virtual Interviews and Built-In Translation

The new platform will include virtual interviews and match employers directly with workers based on job needs and skills.

Artificial intelligence would handle live translation. An employer could speak in Bahasa Malaysia, and the system would translate it into the worker’s own language in real time.

This aims to reduce misunderstandings caused by language barriers, which are common in cross-border hiring.

How Foreign Workers Enter Malaysia Today

To work legally in Malaysia, foreign workers must hold one of several work visas or permits. Here are the most common ones:

1. Employment Pass

The Employment Pass is for professionals, managers, executives, and skilled workers. Employers sponsor the pass. It usually requires higher qualifications and pays above a set salary threshold. The pass is valid for up to five years and can be renewed.

2. Temporary Employment Pass (Category I, II, III)

These are for lower-skilled or semi-skilled workers.

• Category I is for semi-skilled roles, such as technicians.
• Category II covers unskilled jobs with short contracts.
• Category III is often used for plantation, construction, or domestic helper roles.

These passes are tied directly to the employer and the specific job. If the job ends, the pass usually expires.

3. Professional Visit Pass

This is for short-term work, like project work, internships, or professional services lasting less than 12 months. It’s not a long-term work visa, but it lets a foreign national work legally for a specified period.

4. ePASS

In 2025, Malaysia overhauled its Employment Pass (EP) system, rolling out new digital permits, stricter compliance rules, and higher visa fees. The changes aim to attract skilled foreign professionals, improve transparency, balance local and foreign talent, and speed up processing.

Government-to-Government Hiring Model

Malaysia is also talking to labour-source countries to ensure the system aligns with their laws and regulations. Sustainability and system capacity are still being worked out.

The idea is to use a government-to-government model with no private agents involved. Worker identity, salary payments, and records would be handled through MyDigital ID.

The proposal will be discussed with the Home Ministry and other stakeholders before going to the Cabinet for approval.

If rolled out as planned later this year, the platform could mark a major shift in how Malaysia hires foreign workers. For workers and employers alike, what this really means is fewer surprises, lower costs, and a system that is easier to trust.