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FMM PRESS STATEMENT: Announcement on Reopening of Foreign Worker Recruitment For All Industries Including Manufacturing Welcomed and Timely To Support Business Recovery

Kuala Lumpur, December 11, 2021 – The Federation of Malaysian Manufacturers (FMM) is most grateful for the fast action by the Government, in particular YAB Prime Minister and YB Minister of Human Resources, in announcing the reopening of foreign worker recruitment from the source country following our appeal on behalf of manufacturers who are facing acute manpower shortages. The reopening of recruitment of foreign workers as a short-term measure to assist industries would most certainly improve the rate and pace of business and economic recovery, restore the confidence and reliability of Malaysia as a manufacturing hub and global supply chain player in the region and improve our export competitiveness.

We look forward to the quick release of the Standard Operating Procedures (SOP) on the entry of foreign workers and request that the industry be involved in the discussions to ensure that the SOPs are practicable and at the same time do not add unnecessary cost burden on employers during this fragile economic period. The industry is cognisant of the prevailing health threats of the Covid-19 pandemic and the need to ensure that the entry of the workers do not add to the health risks but at the same time request that the SOPs do not impose undue financial constraints on employers and for there to be full transparency on all cost elements involved.

The industry also notes that the implementation of the multi-tier levy mechanism has been postponed to July 1, 2022 and thanks the Government for recognising the timing sensitivity of implementing this policy change. FMM has always supported the implementation of the multi-tier levy mechanism which will allows the forces of demand and supply to determine outcomes and will effectively influence market behaviour without distortions; provides clarity and certainty to approvals; reduces bureaucracy and removes opportunities for abuse and corruption. We humbly request that the details of the multi-tier levy and the rate be announced by January 2022 to give industries the necessary time to plan and adjust to the new levy system.

At the same time, FMM continues to remind industries to be responsible employers and continue to ensure strict adherence and compliance to all labour and employment laws and human resources standards and practices when employing foreign workers. In the long-term, concerted efforts have to be taken to reduce the dependence on foreign workers including greater technology adoption and automation of processes.


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Tan Sri Dato’ Soh Thian Lai
President, Federation of Malaysian Manufacturers

FMM Advocates Transparency, Integrity and No Corruption

About FMM
The Federation of Malaysian Manufacturers (FMM) has been the voice of the Malaysian manufacturing sector since 1968. Representing over 11,300 member companies (3,500 direct and 7,800 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.

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