Page 11 - BPAReport

best placed to take on this role as it already has the mandate for determining the labour
market needs of the economy. MOHR also has the responsibility for the oversight and
enforcement of industry’s compliance with the employment laws of Malaysia and
consistency with international norms and practices.

7. The Independent Committee recommends that the NFWMS prioritise the
development of an integrated end-to-end single online system to administer all aspects of
foreign workers management. This online system will remove the inefficiencies and
unnecessary processes stemming from the current mix of manual, face-to-face, multiple
electronic and discretionary procedures. More importantly, the integration and digitalization
of currently outsourced processes and procedures will remove all forms of corruption, rent
seeking, monopoly and market capture from preferential appointment of service providers. It
will also reduce the incidences of cascading and unnecessary increases in fees and charges.

8. The Independent Committee recommends that sufficient financial and human
resources be provided to MOHR and involved agencies to implement this single online
system, starting with the PLKS worker component module. The new system should build
upon functioning segments of the existing system. All current concession contracts with
outsourced service providers for foreign workers management should be terminated.

9. The Independent Committee endorses the Multi-Tier Levy System as the centrepiece
mechanism of the PLKS worker online application and approval system. The dependency
ratio formula embedded in the multi-tier mechanism and the online decision algorithm will
eliminate discretion and delays in the approval process. This automatic decision process will
eliminate the need for the one-stop-centre manual and discretionary processes.

10. All pre-arrival, post arrival and repatriation procedures will be undertaken online. The
findings of mandatory processes like health checks, etc. and identity verification protocols
like biometrics, etc. and other requirements will be digitalized in a single standard format
platform and uploaded into the centralized data warehouse of the NFWMS. This database
will be managed by MOHR; and all agencies that have a role in regulating foreign workers
will be given access to this database. The real time database will have the capability for
generating a variety of management indicators on a timely basis for the monitoring of all
types of foreign workers.

11. The amount of levy to be paid will be determined by the Multi-Tier Levy system and
payments are to be made through online banking arrangements. Levy must be paid online
directly to a Treasury account and confirmed by the system upon which the PLKS or
employment pass is issued or renewed. An option for quarterly payments of the levy will be
allowed.

12. All employers must make an online standardised statutory declaration that they
comply with all Malaysian employment and other applicable laws, regulations, guidelines
and international norms pertinent to foreign workers.

13. The PLKS to be issued to the foreign worker and other forms of employment passes
will be in digital form and linked to a Smart ID to be generated for each foreign worker.
Enforcement agencies must accept the Smart ID for identification purposes and not demand
paper passports at check points.

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