PETALING JAYA: The Federation of Malaysian Manufacturers (FMM) said it strongly welcomes the government’s recent policy to permit foreign workers to change employers across sectors.
In a statement, the association said this decisive and pragmatic move comes at a critical time, offering much-needed relief to industries facing labour shortages amid the continued freeze on new foreign worker recruitment.
FMM said the policy has the potential to help rebalance the distribution of labour across sectors, enabling companies with surplus workers to release them to sectors experiencing acute shortages, including manufacturing.
FMM also supported the policy announcement on allowing applications on a case-by-case basis for the manufacturing sector, particularly to replace workers who have exited employment. This flexibility will assist in maintaining the continuity of operations and minimising disruption to production activities, it said.
“As a responsible employer organisation, and from a human resource management perspective, FMM underscores the importance of ensuring that the implementation of this policy aligns with regulatory compliance and ethical workforce practices,“ FMM president Tan Sri Soh Thian Lai said.
In line with this positive, FMM advocated for the portability of levy payments.
In cases where a worker transfers to a new employer, the levy already paid by the former employer should be transferable. If the levy rate differs between sectors, the new employer should only be required to pay the difference.
Soh said this approach promotes financial fairness and avoids double-burdening employers.
FMM proposed that the Immigration Department to directly manage the intersectoral transfer process. It said a centrally coordinated system would ensure uniformity in procedures, reduce opportunities for abuse, and speed up approvals.
The federation also urged the adoption of digitised processing with end-to-end visibility to enhance efficiency and transparency.
An online platform featuring status tracking, audit trails and defined approval timelines would reduce administrative overhead and strengthen compliance monitoring, it said.
In addition, FMM said, worker consent and safeguards must be prioritised. Transfers should only proceed with the worker’s informed, voluntary consent and be properly documented.
FMM noted that a formal grievance mechanism should be in place to resolve any disputes arising from such transfers.
Finally, FMM recommended integrating databases for effective labour matching.
“Specifically, the MyFutureJobs platform should serve as a national clearinghouse to align surplus labour with 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 deliver its intended benefits while protecting the interests of all stakeholders involved.
