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23. The single integrated online system module for PLKS workers will remove
inefficiency and bureaucratically unnecessary procedures of the current mix of manual, faceto-
face, multiple electronic and discretionary procedures. Removal in discretion for decision
making by the online decision algorithm will eliminate corrupt practices and delays in the
approval process. It will reduce unnecessary cost currently borne by employers and foreign
workers while producing real time management indicators to develop evidence based policy
responses to issues and problems that may emerge.

24. Integration and digitalization of currently outsourced processes and procedures will
remove opportunities for corruption, rent seeking, monopoly and market capture from
preferential appointment of service providers, and reduce the incidence of cascading and
unnecessary increases in fees and charges.

Overall Policy Recommendations for PLKS System
1. MOHR will have sole responsibility for the PLKS Management System
2. Management of PLKS workers through a single online end-to-end integrated
system This will be the largest module of the NFWMS online system.
3. Employers needing PLKS worker must register and make the statutory declaration
that they comply with all Malaysian employment laws
4. Approval segment based on the multi-tier levy agreed Dependency Ratio (DR)
formula
5. PLKS in digital form linked to Smart ID to be recognised by all enforcement
agencies
6. Replacement, Renewal, Repatriation segments to be integrated into online system
7. Online payments of levy to MOF account
8. Online system will build upon functioning elements of current system

5.3.3 Policy recommendation for adopting the Multi-Tier Levy System

25. The Independent Committee endorses the Multi-Tier Levy System as the centrepiece
mechanism of the PLKS worker online application and approval system (see Appendix III for
a description of the Multi-Tier Levy System).

26. The Independent Committee strongly recommends that, from the large revenue to be
collected, prominent considerations be given within the multi-tier levy system context for
allocation of sufficient resources to develop an efficient end-to-end online foreign worker
management system and database. These financial resources should also support reform
efforts to have more effective enforcement actions and well operating programs to reduce
reliance on foreign workers through promoting automation and the associated upskilling of
Malaysian workers.

Policy Recommendations on Multi-Tier Levy System
1. The Multi-Tier Levy System will be the centrepiece mechanism of the PLKS
worker online application and approval system
2. Programs to reduce reliance on foreign workers by promoting automation and the
associated upskilling of Malaysian workers.

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