FMM Vice President, YBhg Dato’ Nathan K Suppiah, represented FMM as one of the panelists at the 3rd ESG and Sustainability Conference – “Malaysia’s Next Big Step”, organised by CGS International Securities Malaysia Sdn Bhd on November 4, 2025 at the Renaissance Kuala Lumpur Hotel & Convention Centre.
Dato’ Nathan joined the panel discussion on “Malaysia’s foreign labour dependency dilemma”, alongside Ms Paremeswari Subramaniam, Head of Policy Division, SUHAKAM, and Mr Charles Santiago, Co-Chair, ASEAN Parliamentarians for Human Rights (APHR). The session, moderated by Mr Jeremy Goh, Head of Research, CGS International Securities Malaysia, discussed business concerns related to forced labour, human rights, and responsible recruitment in line with ILO standards.

During the session, Dato’ Nathan shared insights on Malaysia’s foreign labour dependency dilemma and how the nation can balance competitiveness, human rights, and ESG expectations.

Key points highlighted by Dato’ Nathan:

• Multi-Tier Levy Mechanism (MTLM): FMM has long proposed MTLM as a market-based tool to gradually reduce reliance on low-skilled foreign labour. Levy revenues should be channelled to support TVET and automation initiatives.
  
  
• Foreign Worker Levy Structure: Policy design must be phased, predictable, and considerate of SMEs, avoiding sudden cost shocks.

• Use of Levy Funds: FMM proposes creating a TVET Apprenticeship Fund and an Automation and Industry 4.0 Fund with transparent oversight and industry participation

• Undocumented Workers and ESG Risks: Employers prefer legal workers to uphold compliance and reputation. A balanced policy is needed—combining regularisation, stronger recruitment governance, and enforcement against syndicates.

---

About FMM
The Federation of Malaysian Manufacturing (FMM) has been the voice of the Malaysian manufacturing sector since 1968. Representing over 13,100 member companies (4,100 direct and 9,000 indirect) from the manufacturing supply chain, FMM is actively engaged with government and its key agencies at Federal, State and local levels. FMM is also well-linked with international organisations, Malaysian businesses and civil society. Apart from benefitting from FMM’s advocacy, FMM members enjoy value-add services, including training, business networking and trade opportunities as well as regular information updates.

Media Enquiries
Han Mong Ying, Senior Manager, Corporate Affairs Tel: 03-6286 7200 Email: webmaster@fmm.org.my