Petaling Jaya: The Malaysian Federation of Manufacturers (FMM) said it is strongly welcoming the government’s recent policy of allowing foreign workers to change employers across the sector.
In a statement, the association said this decisive and practical move is at a critical time and will provide much-needed relief for industries facing labor shortage amid the continued freeze in recruiting new foreign workers.
FMM said the policy could help realign the distribution of labor across sectors, allowing companies with surplus workers to release them to sectors experiencing acute shortages, including manufacturing.
FMM also supported the policy announcement regarding the permitting application on a case-by-case basis in the manufacturing sector, particularly to replace end-of-employment workers. This flexibility helps maintain operational continuity and minimizes disruption in production activities, he said.
“As a responsible employer organization and in terms of personnel management, FMM emphasizes the importance of ensuring that the implementation of this policy is consistent with regulatory compliance and ethical workforce practices,” said FMM’s Tan Sri So Tian Rai.
In line with this positive, FMM advocated the portability of collection payments.
If a worker transfers to a new employer, collections already paid by the previous employer must be transferable. If collection rates vary across sectors, new employers should only be required to pay the difference.
Soh said the approach would promote financial equity and avoid double burning employers.
FMM was proposed by the Immigration Bureau to directly manage the inter-sector relocation process. The centrally coordinated system said it would ensure uniformity in procedures, reduce opportunities for abuse and speed up approval.
The federation has also urged the adoption of digitalised processing with end-to-end visibility to increase efficiency and transparency.
It says the online platform with status tracking, audit trails and defined approval timelines will reduce administrative overhead and increase compliance monitoring.
Furthermore, according to FMM, workers’ consent and safeguards must be prioritized. The forwarding must continue with the informed voluntary consent of the worker and be properly documented.
FMM noted that a formal complaint handling mechanism should be in place to resolve disputes arising from such transfers.
Finally, FMM recommended consolidating the database for effective labor matching.
“Specifically, the MyFutureJobs platform should act as a national clearing house for adjusting surplus labor and industry demand. Employers should be encouraged to update their workforce status to promote transparency and reduce reliance on intermediaries,” Soh said.
He noted that with these measures in place, the new policy can provide intended benefits while protecting the interests of all involved stakeholders.
