Kuala Lumpur, 28 April 2025 — The Federation of Malaysian Manufacturing (FMM), led by President Tan Sri Dato’ Soh Thian Lai, held a high-level discussion with YB Steven Sim Chee Keong, Minister of Human Resources (KESUMA), on 25 April 2025, reinforcing their shared commitment to enhancing Malaysia’s workforce ecosystem through strategic, future-ready initiatives.
Advancing a Sustainable Workforce Strategy
Key discussions centred on the urgent implementation of the Multi-Tier Levy Mechanism (MTLM) to create a more flexible, demand-driven foreign worker recruitment system. Acknowledging its importance, YB Minister Steven Sim proposed a comprehensive joint study between KESUMA and FMM to evaluate the mechanism’s feasibility and potential labour market impact.
FMM also raised concerns regarding the ongoing freeze on foreign worker recruitment, highlighting critical manpower shortages across sectors. To address these gaps, FMM will submit a detailed position paper outlining sectoral labour demand and proposing structured short- and long-term workforce solutions.
Strengthening TVET through Industry-Driven Collaboration
FMM and KESUMA agreed to formalise their collaboration through a Memorandum of Understanding (MoU) aimed at enhancing the training and employability of graduates from KESUMA’s 33 TVET institutes. Under the new framework, students will complete 60%–70% of their academic term through industrial placements at FMM member companies, gaining vital hands-on experience.
Additionally, KESUMA will allocate a special grant to partner with FMM in upgrading the Sijil Kemahiran Malaysia (SKM) Levels 4 and 5 curriculum, focusing on high-value, technology-driven sectors. The upgraded syllabus will empower ILP graduates with advanced skills, enabling higher starting salaries and enhanced career mobility — further strengthening Malaysia’s global competitiveness.
To improve job placement outcomes, FMM and KESUMA are working to integrate the Government-Industry TVET Coordination Body (GITC)’s digital Job Placement Centre with the MYFutureJobs platform, reinforcing a seamless pathway from training to employment.
Promoting Worker Welfare and Social Protection
Recognising the importance of optimising worker welfare, FMM will conduct a survey among its members to review existing private insurance coverage. This aims to eliminate redundancies with protections already offered by PERKESO, streamlining healthcare benefits and reducing costs for both employers and employees.
FMM also pledged to promote greater awareness of the Housewives’ Social Security Scheme (SKSSR) among member companies, encouraging contributions for female employees and spouses of male employees to enhance social protection.
Addressing Labour Housing Shortages
FMM highlighted the urgent need for more compliant Centralised Labour Quarters (CLQs), especially within major industrial parks. Current shortages have led to higher rental and transportation costs, impacting operational efficiency and workforce stability. Non-compliance with Act 446 (Minimum Standards of Housing, Accommodations and Employee Facilities Act 1990) also poses enforcement risks and potential failures in social compliance audits by global buyers.
FMM stressed that developing well-planned CLQs is critical not only for legal compliance but also for improving Malaysia’s attractiveness as a premier investment destination.
