Page 10 - BPAReport

EXECUTIVE SUMMARY

1. The recommendations of the Independent Committee support the Government’s
intention to effectively manage the admission and repatriation of foreign workers whilst
reducing the dependence on them without harming the economic growth objectives and the
well-being of Malaysian citizens. The availability of a comprehensive foreign workers
database to monitor and track foreign workers will help to reduce the presence of
undocumented workers. The creation of an appropriate environment and ecosystem for the
deployment of foreign workers will facilitate employers to abide by the employment norms
for the protection of the workers and to safeguard Malaysia’s international reputation on the
treatment of migrant workers.

2. The presence of foreign workers has brought and will continue to bring economic
benefits for the growth and sustained development of Malaysia. Notwithstanding the need for
foreign workers, the collection of current policies on employment of foreign workers is an
accumulation of a succession of measures, sometimes ad hoc, taken in response to the
demands of industry. As a consequence, the policies lack a proper framework and a
comprehensive strategy for the effective management of foreign workers. Moreover, in the
absence of a central agency with overall responsibility and authority, these disparate policies
have seldom been evaluated for continued relevance or effectiveness.

3. The Independent Committee has deliberated on the feedback and criticisms from
industry, civil society and other stakeholders on the shortcomings and embedded corrupt
practices in the current policies and procedures pertaining to the engaging of foreign workers.
They portray a foreign worker management system that is in disarray and dysfunctional.
More alarmingly, the Committee has detected unethical practices, collusion and
transgressions in the procurement of service providers for procedures essential for an
effective foreign worker management system. The widespread rent seeking, money-making
and captive preferences have inflated the operational and developmental costs to the
Government, employers and foreign workers.

4. The Independent Committee notes that the discretionary powers granted for special
approvals and the arbitrary decisions made on the determination of the quantity of foreign
workers needed are the major complaints by employers and industry. These procedures are
also perceived to have led to concealed corrupt practices, misdeeds and breaches of trust.

5. The Government needs to reform in a comprehensive manner the policies pertaining
to the recruitment, employment and monitoring of foreign workers. There must also be more
effective policies for the handling of undocumented foreign workers. Whilst the two largest
groups of foreign workers are the documented low skilled and the undocumented workers,
the Government must also specifically address foreign domestic household workers,
expatriates, the right to work of refugees, foreign spouses of Malaysian citizens and stateless
persons consistent with international obligations and human rights.

6. A single government entity is needed and charged with implementing a coherent set
of policies within a strategic framework for the effective management of foreign workers.
The Independent Committee recommends that the Ministry of Human Resources (MOHR) be
this single authority responsible for formulating the policies and implementing them
effectively within the National Foreign Workers Management System (NFWMS). MOHR is

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