Foreign Workers Recruitment in Malaysia

Eligibility Criteria 

1. Export-oriented Companies

·        A minimum export value of RM50 million; or

  •     A minimum export percentage of 50% from annual turnover; and

i.   a minimum local content value of 40%; or

ii.  a minimum value-added product of 30%; or

iii. a minimum capital investment per employee (CIPE) ratio exceeding RM100,000 

The eligibility ratio of local workers vis-à-vis foreign workers is 1: 3. 

2. Non-Export oriented Companies

  • A minimum paid-up capital of RM100,000; and
  • A minimum total annual turnover of RM2 million; and

i. a minimum local content value of 40%; or

ii. a minimum value-added product of 30% 

The eligibility ratio of local workers vis-à-vis foreign workers is 1: 1. 

Source Countries 

Source countries approved to supply foreign workers in the manufacturing sector : 

Philippines (male), Indonesia (female), Cambodia, Kazakhstan, Laos, Myanmar, Pakistan, Nepal, Sri Lanka, Thailand, Turkmenistan, Uzbekistan and Vietnam. 

Levy  

i.                 Levy imposed for foreign worker in the manufacturing sector is RM1,200 per worker per annum.

ii.               Payment must be made in the form of bank draft to Director General of Immigration Department within 2 days after approval.

Certificate From The Human Resources Department to the effect that the employer has availed himself of the Job Clearing System (JSC) to recruit workers locally

i.                 The Job Clearing System (JCS) is a computer generated service that is handled by the HRD to assist job seekers in finding jobs and to assist employers in recruiting workers from among the locals.

 

ii.               In order to obtain the Certificate of Registration, an employer must have advertised the relevant vacancy with the JCS either on-line or by calling at the nearest HRD office.

The HRD will issue a Letter Verifying Registration with JCS upon being satisfied either that the employer has through this service made every effort to recruit workers locally or that 30 days have elapsed since the employer’s registration with JCS.

Response to MKMA’s Memorandum on Foreign Workers Issues
 

MKMA’s Issue

Response from Relevant Departments
  1. Direct Application instead of through Outsourcing Agents for companies employing below 50 Foreign Workers

 

All companies fulfilling eligibility criteria are advised to apply directly and NOT through sourcing agents regardless of number of workers. Application can be made through the Ministry’s One Stop Centre.

 
  1. Slow Approval of Calling Visa

 

The approval of Visa with Reference (Calling Visa) for Bangladeshi workers involves the Ministry and many applications still pending for approval from the Minister of Home Affairs as the Government has freeze the employment of Bangladeshi workers. The officers agreed to find means to expedite the matter.

 

Approval of calling visa for other source country is decided by the Department. The client’s charter for the approval by the Department is 7 days.

 

Companies can track their application for Bangladeshi workers online but not for other source countries as the computer system has yet to be extended for other source countries.

 
  1. Support from Local Labour Office

 

Complain can be filed directly with the Putrajaya HQ for unreasonable rejects or delays. The officers promised to look into the complains pertaining to some local cases.

 
  1. Renewal of Bangladeshi Work Permit – Work permit and collection can only be made at Putrajaya

 

The computer system is still under testing. Hopefully to be fully implemented by Sept 2008 or end of this year and extend the renewal of Bangladeshi permits to state level Immigration Offices.

 
  1. Extension of Skillful Foreign Worker Permits for those who served for 10 years or beyond

 

On 28 July 2008, the Ministry has approved an extra one year extension of work permit for those who served 10 years and beyond. Application to be made with KDN.

 

Alternatively, companies may send those workers back to their home country for a cooling period of 6 months. Thereafter, re-apply for their entry as fresh workers.

 

Back to Index of August 2008