Putrajaya to terminate services of firms handling foreign workers

The government’s decision to restructure the hiring of foreign labour is part of its efforts to combat human trafficking and to ensure foreign workers are treated fairly by their employers.

KUALA LUMPUR: Putrajaya today said it would be terminating the services of 100 outsourcing companies handling foreign workers.

Home Minister Muhyiddin Yassin also said the hiring of foreign workers will soon be handled by an agency under the human resources ministry.

He said the matter was decided by a joint committee on the management of foreign workers.

“The agency will ensure that the hiring of foreign labour will be done in a more systematic manner and according to the existing rules and regulations,” he said after chairing the committee’s first meeting here today.

Also present was Human Resources Minister M Kulasegaran.

Muhyiddin said the decision to restructure the hiring of foreign labour was part of its efforts to combat human trafficking and to ensure foreign workers were treated fairly by their employers.

Meanwhile, Kulasegaran said the multi-tier levy system for foreign workers, which is expected to be implemented next year, will be similar to the system implemented in Singapore.

“It will be based on the ratio between local workers employed by the company and the foreign workers that it wants to hire.”

He also said Putrajaya was considering increasing the bond amount for each foreign worker to deter them from leaving their jobs.

“We are currently charging between RM300 and RM1,500, so the bond can be used if they suddenly run away or want to go back to their home country.

“If the worker runs away, the money will be forfeited. We want the rate to be higher,” Kulasegaran said, adding that the final quantum would be decided after discussions with unions, non-governmental organisations and other stakeholders.