Malaysia Cabinet places foreign worker OSC under HR Ministry

Malaysia's Cabinet has transferred the management of the One Stop Centre (OSC) for foreign workers to the Ministry of Human Resources (Kesuma), marking a significant overhaul of the country's foreign worker quota application process, according to multiple media reports.

The decision, approved by the Cabinet on 1 July, places the OSC under Kesuma's management as part of wider efforts to strengthen governance, improve efficiency and reduce administrative bottlenecks for industries that depend on foreign labour.

Human Resources Minister Datuk Seri R. Ramanan said, “The ministry would immediately introduce a series of digital reforms, with all foreign worker quota applications to be processed through the eQuota module of the Foreign Workers Centralised Management System (FWCMS).”

The move also abolishes the previous case-by-case application process, replacing it with a fully centralised online system.

Digital-first process

Under the new framework, employers will submit applications digitally through the FWCMS, which is integrated with existing government databases to improve processing efficiency and reduce congestion at the OSC.

The system will also enable employers to receive structured interview appointments based on the centre's capacity instead of relying on manual scheduling.

"So there will be no more case-by-case basis. You don't have to travel from other states to Putrajaya to apply for your foreign worker quota," Ramanan said.

He added that the ministry's leadership would no longer be involved in processing individual applications.

"So there will be no queues, no congestion, nothing at all. Neither I, the deputy minister, the secretary-general, the deputy secretary-general nor my office is involved. There is no need to come and contact us, ask to meet us, request for applications to be expedited or for quotas to be granted.

"There is none of that. Everything is done through the system. Very, very transparent and very, very clear," he said.

To explain the changes, Ramanan said employers previously had to secure appointments with the Home Ministry on a case-by-case basis, often travelling long distances without any certainty that their applications would be processed.

"Sometimes you come from Johor, sometimes from Kedah, and you had to queue. There was no guarantee your appointment would be attended to that day. Sometimes you would arrive only to be told to come back because the queue numbers had run out," he said.

Under the new process, employers can submit applications online, receive scheduled appointment dates and times through the FWCMS, and proceed once the relevant regulatory agencies and the OSC have completed their assessments.

"The process remains exactly the same. There are no changes except one: I repeat, there is no more case-by-case processing. Just apply through the system," he said.

Pending applications

Kesuma will begin processing 22,476 foreign worker quota applications involving 548 companies that had previously been submitted manually.

"These applications will now be processed through the FWCMS platform. We will also notify employers to complete their registration in the system before submitting their applications," Ramanan said.

He also rejected concerns over the transparency of the system, stating that Kesuma owns both the FWCMS source code and its super administrator access.

Developed by Bestinet Sdn Bhd, the FWCMS is Malaysia's digital platform for managing foreign worker recruitment. The system has previously attracted controversy, including allegations by Bangladeshi authorities of fraudulent extortion involving workers from Bangladesh.

Local jobs priority

Ramanan reiterated that employers must first prioritise hiring Malaysians before seeking approval to recruit foreign workers.

Employers are required to advertise vacancies through MYFutureJobs and obtain approval under Section 60K of the Employment Act 1955 before submitting applications for foreign workers.

"If there are no takers, if no local workers are hired, then employers may apply for foreign workers through the OSC system. But give the jobs to Malaysians first. We must look after the Malaysian workforce first before looking for foreign workers," he said.

Security unchanged

While Kesuma will oversee quota applications, the Home Ministry will continue to retain the final authority over employment passes and work permits on national security grounds.

Addressing concerns over the transfer of responsibilities, Ramanan said the Home Ministry's powers remain unchanged.

"If the Home Ministry has security concerns over any application, it retains the power to reject or override approvals," he said.

The ministry also plans to establish a dedicated foreign worker management division to oversee OSC policy, operations and enforcement, while studying the introduction of an online document verification system to replace physical counter services.

Ramanan said Kesuma's senior management is finalising the operational transition in consultation with the Home Ministry and other relevant government agencies.

Transit centre plan

Looking beyond the digital reforms, the Cabinet has also agreed for Kesuma to study the establishment of a dedicated Foreign Worker Transit Centre to accommodate newly arrived foreign workers before they are collected by their registered employers.

According to Ramanan, the proposed facility could house between 1,000 and 2,000 workers at any one time to ease congestion at airports.

He stressed, however, that the centre would only serve as temporary accommodation and would not function as permanent housing or a detention facility.