Malaysia to trial direct migrant hiring system, cuts agents

Malaysia plans to pilot a new system allowing companies to hire migrant workers directly, aiming to reduce reliance on costly middlemen.

Malaysia to trial direct migrant hiring system, cuts agents

Image: freemalaysiatoday.com

Malaysia's government is planning to pilot a new system for hiring migrant workers that would allow companies to recruit directly from source countries, according to government sources and media reports. The system, known as the Universal Recruitment Management System (URMS), is designed to bypass traditional labor brokers and middlemen, who are often accused of charging excessive fees to both employers and workers.

The initiative is reportedly being developed by a company linked to prominent Malaysian businessman Tan Sri Amin, though specific corporate details were not officially confirmed in recent reports. The software platform aims to create a more transparent and centralized process for managing foreign worker recruitment, from job matching to visa applications.

If implemented, the direct hiring mechanism could significantly alter Malaysia's labor migration landscape. The country relies heavily on foreign labor in sectors like construction, manufacturing, and plantations. The current system has long been criticized for fostering exploitation and high debt burdens on workers due to recruitment fees.

The pilot phase is expected to begin soon, though an official start date has not been publicly announced. The success of the URMS will depend on its integration with existing government platforms and its adoption by both employers and source country authorities.

❓ Frequently Asked Questions

What is the Universal Recruitment Management System (URMS)?

It is a proposed software system in Malaysia designed to allow companies to hire migrant workers directly from source countries, bypassing traditional labor brokers.

Why is Malaysia introducing this new hiring system?

The aim is to reduce exploitation and high fees charged by middlemen in the current recruitment process, creating a more transparent and centralized system.

Who is developing the URMS system?

Recent reports indicate the system is being developed by a company linked to Malaysian businessman Tan Sri Amin, though full corporate details are not yet publicly confirmed.

📰 Source:
freemalaysiatoday.com →
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