Yayasan Usahawan Malaysia (YUM) has welcomed the Government’s ongoing efforts to modernise Malaysia’s foreign worker recruitment system, while commending the Ministry of Human Resources for engaging industry stakeholders throughout the reform process.
The foundation believes the reforms present an opportunity to strengthen governance while simultaneously making it easier and more cost-effective for businesses to operate.
As Malaysia continues to position itself as a competitive investment destination, YUM emphasised that successful reforms should balance stronger regulatory oversight with practical measures that reduce the cost of doing business.
Reducing Costs While Improving Transparency
According to YUM, Malaysian entrepreneurs and employers have consistently supported initiatives that promote transparency, accountability and digitalisation.
However, the organisation stressed that these improvements should ultimately lower operating costs rather than introduce additional financial burdens for businesses.
Over the years, Malaysian employers have collectively incurred billions of ringgit in recruitment expenses, administrative charges and compliance costs associated with hiring foreign workers. YUM believes this presents an opportunity to redesign the recruitment framework by eliminating inefficiencies, reducing unnecessary bureaucracy and ensuring technology delivers tangible value to both employers and workers.
Opportunity to Build a World-Class Recruitment Ecosystem
YUM Chairman Datuk Nitesh Malani said the Government now has an opportunity to introduce reforms that could become a benchmark for the region.
“The business community supports reform and transparency. We support stronger governance. We support any initiatives that protect workers while making Malaysia competitive.”
He added that businesses should not be expected to shoulder additional costs for systems designed to improve efficiency.
“Our humble appeal is that businesses should not be asked to bear additional costs for a system that is intended to improve efficiency. Technology should reduce costs, not increase new ones.”
Datuk Nitesh noted that the proposed reforms should focus on addressing longstanding inefficiencies and leakages that have contributed to rising recruitment costs over the years.
“Malaysian employers have invested billions of ringgit in recruitment processes, compliance and administrative costs. This is the moment to simplify the system, remove unnecessary layers and ensure that every ringgit spent creates value for businesses, workers and the nation.”
Confidence in the Ministry’s Leadership
Datuk Nitesh also expressed confidence in the leadership of Minister of Human Resources, YB Dato’ Sri Ramanan, saying the Ministry has an opportunity to leave a lasting legacy through meaningful reforms.
He said the reforms could help restore confidence, improve governance and position Malaysia’s labour ecosystem as one of the most efficient and transparent in the region.
He further appealed to the Ministry to continue engaging employers, SMEs and industry stakeholders throughout the implementation process.
“Together, Government and industry can build a system that is practical, trusted and sustainable for generations.”
Recommendations for a More Efficient Recruitment System
YUM believes that meaningful policy reforms are best achieved through constructive collaboration between the Government and industry.
To support this goal, the foundation recommends that any new foreign worker recruitment platform should:
- Deliver measurable reductions in recruitment costs and processing times.
- Eliminate unnecessary bureaucratic procedures and administrative duplication.
- Improve transparency and accountability throughout the recruitment ecosystem.
- Keep implementation fees to a minimum during the transition period.
- Continue to be refined through ongoing stakeholder consultation.
Supporting Malaysia’s Long-Term Economic Growth
YUM reaffirmed that Malaysian entrepreneurs remain committed to supporting national economic growth, employment creation and long-term competitiveness.
The organisation believes that reforms which are transparent, efficient and business-friendly will strengthen investor confidence, enhance productivity and reinforce Malaysia’s position as one of Southeast Asia’s leading investment destinations.
“Our objective aligns with that of the Government — a stronger Malaysia,” Datuk Nitesh said. With business growth fostered by confidence, investments will rise, quality employment will expand, workers will benefit, and the nation’s economy will strengthen. This is an aspiration we should pursue collectively.”
