Joint study proposed for flexible foreign worker recruitment framework
KUCHING (April 28): A comprehensive joint study has been proposed to assess the feasibility of implementing the Multi-Tier Levy Mechanism (MTLM) to address foreign labour issues, said Tan Sri Soh Thian Lai.
The Federation of Malaysian Manufacturing (FMM) president stated that the proposed MTLM is a crucial enabler for a more flexible and demand-driven foreign worker recruitment framework.
He noted that Human Resources Minister Steven Sim acknowledged the importance of MTLM during a recent meeting between FMM and the Ministry of Human Resources (MoHR).
'During the meeting, FMM emphasised the urgency of implementing the MTLM. Minister Steven Sim proposed a comprehensive joint study between the ministry and FMM to assess its feasibility and labour market impact,' he said in a statement today.
Soh highlighted that the meeting underscored the strong commitment between FMM and the minister to collaboratively strengthen the country's workforce ecosystem through comprehensive, forward-looking initiatives.
He also pointed out that FMM had raised concerns about the prolonged freeze on foreign worker recruitment, which has led to critical manpower shortages due to attrition and the creation of new jobs.
Soh said FMM will submit a detailed position paper presenting sectoral labour demand data and proposing a structured approach to address both short-term and long-term workforce needs.
He said both FMM and the minister agreed to collaborate through a memorandum of understanding (MoU) to enhance industry exposure for students from the ministry's 33 Technical and Vocational Education and Training (TVET) institutes.
Under this programme, Soh said, students will spend 60 to 70 per cent of their academic term at FMM member companies' facilities, gaining real-world, hands-on experience aligned with current industry needs.
To further reinforce this effort, he said the ministry will provide a special grant to collaborate with FMM on upgrading the syllabus for Sijil Kemahiran Malaysia (SKM) Levels 4 and 5, with a focus on high-value and technology-driven sectors.
To streamline job matching, Soh said FMM and the minister discussed linking the Government-Industry TVET Coordination Body (GITC) digital Job Placement Centre to the MYFutureJobs portal.
Since its establishment in 2022, GITC – anchored by FMM – has continued to spearhead national-level efforts to coordinate industry skills requirements.
'Recognising the importance of worker welfare, FMM will conduct a survey among its members to review existing private insurance arrangements.
'Given that Socso already provides comprehensive inpatient and outpatient insurance, the survey aims to identify potential overlaps and explore opportunities to rationalise coverage, thus reducing healthcare costs for both employers and employees,' he said.
Furthermore, Soh said FMM will raise awareness among its member companies about the Socso Housewives' Social Security Scheme (Skim Keselamatan Sosial Suri Rumah), encouraging contributions for their female employees and the wives of male staff.
'This initiative provides protection for housewives against domestic accidents, illnesses, and invalidity,' he added. Federation of Malaysian Manufacturing lead Multi-Tier Levy Mechanism
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