Employee Relations

Malaysia’s foreign workers replacement system to be reinstated

Malaysia’s foreign workers system will be reinstated in all sectors from 1 July, 2019.

According to Human Resources Minister M Kulasegaran, this system was suspended in 2017 as “it was an inconvenience to employers who were forced to go through the normal application process and incur further costs to get their replacement workers.”

He shared that with this reinstated system, employers would no longer need to go through a new application process to find a replacement, when a foreign worker they’ve employed has returned home.

Kulasegaram was earlier quoted saying that the reinstatement of the scheme would allow employers to get replacements for foreign workers who had returned to their home country without having to go through a new application process.

He further shared that the government believes this approach will not involve increasing the number of foreign workers but instead retain the number that have been approved for employers before.

He is optimistic that the  government’s decision on reinstating the system will resolve the issue of worker shortage faced by the industry to ensure production of goods, especially those for export, was not affected.

The employers wishing to apply for replacement of foreign workers should contact the Foreign Workers Management Division of the Home Ministry.

The Malaysia government’s decision came after a joint working group meeting between Bangladesh and Malaysia was held in Kuala Lumpur.

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