The Association of Employment Agencies Malaysia, Malaysian National Association of Employment Agencies and National Association of Human Resources urged the relevant ministries not to support the proposed platform until comprehensive engagements with stakeholders were held.

The groups represent licensed private employment firms regulated under the Private Employment Agencies Act 1981.

They raised concerns over the potential removal of licensed agents from the recruitment process, as well as the cost implications under the proposed system.

They said getting rid of the roles of agencies would lead to financial distress for many firms, the majority of which are small and medium-sized enterprises established in the 1980s and 1990s.

They said they supported Malaysia’s move towards fully implementing an ethical recruitment model in a gradual manner, a process expected to take 10 to 15 years.

“We regret that the pretext of ethical recruitment has been widely used to rationalise the move to expedite setting up this digital platform without consulting all stakeholders.

“We agree that Malaysia’s foreign recruitment process should not accumulate unnecessary tiers … (but) we strongly suggest the authorities revert to the existing laws which have proven effective in regulating (migrant worker) recruitment,” they said in a joint statement.

The associations said they had formally objected to the proposal in a letter submitted to multiple ministries on April 8.