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DPMM backs direct hiring of foreign workers to cut costs and curb exploitation

The Malay Chamber of Commerce supports KESUMA’s new direct hiring pathway for foreign workers, aiming to reduce recruitment costs, improve transparency and curb middlemen exploitation.

KUALA LUMPUR: The Malay Chamber of Commerce Malaysia (DPMM) has welcomed a new government initiative to allow employers to hire foreign workers directly.

DPMM president Norsyahrin Hamidon said the move by the Ministry of Human Resources (KESUMA) is a positive step to reform the labour market structure.

He stated the initiative is crucial to reduce excessive recruitment costs and improve transparency in the hiring supply chain.

It will also help curb dependence on intermediaries often linked to governance issues and worker exploitation.

“The existing structure has created heavy reliance on middlemen, burdening micro, small and medium enterprises (MSMEs),” Norsyhrin said.

This reliance weakens business efficiency and competitiveness, he added in a statement.

“DPMM welcomes the initiative introduced by Human Resources Minister Datuk Seri R Ramanan,” he said.

He believes its implementation must be supported by strong governance and monitoring mechanisms.

Norsyahrin outlined key challenges that must be addressed for the initiative’s success.

These include the capacity of small employers and the need for a transparent, integrated digital system.

Legal compliance and coordination among ministries, agencies, immigration and labour-source countries are also vital.

DPMM is ready to leverage its nationwide MADANI Business Outreach Programme (GEMA) as an engagement platform.

Findings from direct business community feedback can be channelled systematically to KESUMA.

This will ensure the initiative delivers broad benefits to employers, foreign workers and the national economy.

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