The timeline of special application window though shorter than our proposal for a six-month extension until June 2026, would provide relief to the employers, who are currently rushing to submit their FWs quota applications to beat the earlier deadline on 31 December 2025.
ACCCIM has conducted a Quick-Take Survey (QTS) throughout the period 11 December to 16 December 2025, to gather timely feedback from our members on the implementation and effectiveness of the FWs recruitment policy. The survey has highlighted the following three issues.
a) For those that have submitted FWs applications, more than half are still pending for approval. The main concern raised is a tedious and complex requirement, which has to undergo three levels of interview processes, namely (i) Industry-level authorities such as Lembaga Pembangunan Industri Pembinaan Malaysia (CIDB) and Kementerian Perdagangan Dalam Negeri dan Kos Sara Hidup (KPDN); (ii) Jabatan Tenaga Kerja (JTK); and (iii) Kementerian Dalam Negeri (KDN).
b) Overall, fewer than 20% of applications have obtained full approval, while around one-fifth received partial approval, and a small number of applications have experienced full rejection. In addition, 64.3% of total respondents reported that the application process took 3 to 4 months before an approval or rejection outcome was given.
c) About 80% of respondents encountered various difficulties inrecruiting foreign workers. More than half of those who applied indicated that the recruitment procedure is complex and time-consuming. Other commonly cited issues include unable to obtain the required number of workers, inconsistent interpretation of guidelines by different officers with ambiguous requirements, and sectoral restrictions that prevent certain employers from applying for foreign workers.
ACCCIM proposes the following top three policy adjustments to effectively support businesses in FWs recruitment:
1. Reducing the number of interviews to expedite the approval process.
2. Ensuring uniform interpretation of guidelines to enhance clarity, consistency, and transparency.
3. Removing sectoral restrictions and including more sectors, provided employers can show proof of new projects/orders or business expansion.
4. Any rejection shall be accompanied by a clear explanation to facilitate reapplication, and that employers would be allowed to apply for the same FWs quota as stipulated in the Check-Out Memo since 2019.
While reducing foreign worker dependence is necessary for Malaysia’s long-term manpower planning and industrial restructuring, it requires a carefully managed and phased approach to ensure a smooth transition with disrupting business operations.
As a medium-and longer-term strategy, ACCCIM encourages businesses to adopt digitalisation and automation to enhance productivity and reduce dependency on FWs, backed by the establishment of Multi-Tier Levy Mechanism Trust Fund to support automation and mechanisation.
