FMM backs digital, AI-driven foreign worker hiring system, calls for integrated approach

FMM In The News: THE MALAYSIAN RESERVE, April 17, 2026

FMM stressed that enhancements should build on existing systems to create a more integrated, end-to-end ecosystem, while maintaining transparency, fair cost structures and reduced reliance on intermediaries.

“Industry supports efforts to enhance the current system. The focus should be on strengthening integration, improving efficiency, and ensuring alignment across all relevant ministries and agencies,” he said.

The federation also called for a functionally integrated approach, with the Ministry of Human Resources Malaysia (Kesuma) leading front-end workforce management, including demand validation and job matching, while existing platforms such as the Foreign Workers Centralised Management System (FWCMS) continue to handle back-end regulatory processes under the Ministry of Home Affairs Malaysia.

FMM said such a structure would enable a seamless system supported by strong data integration, improving predictability and workforce planning for employers.

While acknowledging AI’s potential, Lee said its effectiveness would depend on data readiness and system integration.

“Technology is an enabler. With the right data and integration, AI can help deliver a system that is efficient, transparent, and responsive to industry needs,” he said.

FMM added that improvements to the recruitment system should go hand in hand with the proposed multi-tier levy mechanism, which it supports as a more transparent and market-based approach to managing foreign worker dependency.

A more efficient and trusted system, alongside a well-designed levy framework, would better support industry needs while encouraging longer-term investments in automation and productivity, it said.