KUALA LUMPUR: The Malaysian Industrial, Commercial and Service Employers Association (MICSEA) has called for a more equitable and transparent system to safeguard the welfare of foreign workers.
Its president, YK Lai, said that while worker welfare is a priority, the financial responsibility cannot fall solely on employers.
“Placing the entire cost of insurance, medical coverage, welfare, and protection schemes on employers will have a disproportionate impact on businesses, particularly small and medium enterprises (SMEs).
“Many companies are already under pressure from rising compliance costs, and an additional one-sided obligation may threaten their sustainability and future hiring,” Lai said in a statement.
Lai added that the protection of foreign workers is not just an employer issue, but a matter of national interest involving multiple stakeholders.
He noted that a fairer approach would be a shared-cost framework, where the government, employers, and employees each contribute towards protection benefits.
“This ensures equity while strengthening compliance,” he said.
MICSEA emphasised the need for transparent guidelines that define which protections are mandatory, how costs are to be allocated, and how claims will be managed.
Lai said there must be a reliable reimbursement mechanism where employers are tasked with upfront payments for payroll, statutory contributions, or insurance.
“Without such safeguards, employers may be left exposed to cash flow disruptions and unrecoverable costs,” he said.
The association has put forward several key recommendations. This includes introducing a cost-sharing mechanism that equitably distributes contributions between employers, employees and the government.
It also proposed establishing a standardised protection package covering medical, accident and repatriation needs, and creating a streamlined reimbursement process.
MICSEA also suggests providing transitional support, such as government subsidies or phased implementation, to help businesses, especially SMEs, adjust to the changes.
Additionally, it recommends using a centralised digital system to manage contributions, claims, and compliance more efficiently.
“Employers must not be forced to carry the entire cost of foreign worker protection alone. Worker welfare is vital, but the survival of businesses matters too.
“Without employers, there are no jobs. What we need is a fair, transparent, and balanced framework,” Lai added.
New Straits Times. (2025, October). Employers seek shared‑cost model for foreign worker protection. New Straits Times. Retrieved from https://www.nst.com.my/business/corporate/2025/10/1285182/employers-seek-shared-cost-model-foreign-worker-protection
- Employers seek shared-cost model for foreign worker protection
KUALA LUMPUR: The Malaysian Industrial, Commercial and Service Employers Association (MICSEA) has called for a more equitable and transparent system to safeguard the welfare of foreign workers. Its president, YK Lai, said that while worker welfare is a priority, the financial responsibility cannot fall solely on employers. “Placing the entire cost of insurance, medical coverage, […] - Penang must shift from ‘Made in Malaysia’ to ‘Made by Malaysia’, says HR minister amid global uncertainty
GEORGE TOWN, April 22 — Human Resources Minister Steven Sim Chee Keong has called on Penang’s semiconductor and advanced technology industries to reimagine the state’s future amid global economic uncertainty, urging a bold shift from a traditional manufacturing hub to a high-value, innovation-driven economy. In a statement yesterday, the Human Resources Ministry outlined a vision […] - How forced labour and land grabs remain sticky issues for palm oil
August 25 – In 2020, palm oil produced by Malaysian giant Sime Darby, the world’s biggest producer of palm oil certified by Roundtable on Sustainable Palm Oil, was banned from the U.S. after its Customs and Border Protection flagged forced labour in its supply chain. International brands including Kraft Heinz, Nestle and Unilever shunned the supplier in […] - Foreign worker quota reopened till Dec 31, says home minister
KUALA LUMPUR (Aug 19): Applications for the employment quota of foreign workers in three main sectors — agriculture, plantations and mining — as well as in 10 selected subsectors on a case-by-case basis, are now open until Dec 31. Home Minister Datuk Seri Saifuddin Nasution Ismail said that for the agriculture, plantation and mining sectors, […] - STEVEN SIM: MALAYSIA OPENS NATIONAL TRAINING WEEK TO ALL ASEAN CITIZENS FOR THE FIRST TIME
KUALA LUMPUR, Malaysia, May 27, 2025 /PRNewswire/ — In a landmark move under its ASEAN Chairmanship, Malaysia will open its flagship National Training Week (NTW) to all ASEAN citizens for the first time, offering over 65,000 free training opportunities across the country and online from 14-21 June 2025. The Honourable Mr Steven Sim Chee Keong, Minister of […] - Steven Sim: One-stop labour centre to be expanded nationwide by year end
KEPALA BATAS (Sept 6): The Ministry of Human Resources’ (Kesuma) one-stop labour centre, which consolidates all the ministry’s key services under one roof, is set to be expanded nationwide by the end of this year. Human Resources Minister Steven Sim said that the one-stop centre aims to streamline service delivery for employees, employers, and unions, […] - SMEs sound alarm on rising costs and red tape despite cautious optimism
MALAYSIA’S small and medium enterprises (SMEs), the backbone of the economy, are entering the second half of 2025 (2H25) under mounting pressure from rising costs, regulatory burdens and labour shortages, even as many remain cautiously optimistic about growth prospects. In separate statements last week, the Malaysian Industrial, Commercial and Service Employers Association (MICSEA) and the Small […] - From worry to strategy
FROM drafting documents to analysing performance, generative artificial intelligence (AI) is beginning to shape how bosses and employees interact. For many companies, this means rethinking old rules and practices to keep things fair, transparent and legally sound. To get ahead of this shift, the Malaysian Industrial, Commercial and Services Employers Associa-tion (MICSEA) has begun initiatives […] - Malaysia rises eight sport to 25th in IMD Talent Ranking
PUTRAJAYA: Malaysia has jumped eight spots to 25th position in the IMD World Talent Ranking 2025, reflecting the country’s growing ability to become one of the key destinations for global professionals. Human Resources Minister Steven Sim said that in the Asia-Pacific region, Malaysia is ranked fifth, after Hong Kong, Singapore, Taiwan and Australia. He said […] - Human Resources Ministry opens two probes into Johor bus company following driver strike over salary cuts and excessive overtime
PUTRAJAYA, July 22 — The Ministry of Human Resources (KESUMA) has opened two investigation papers against a transport company following a bus driver strike at the Sultan Iskandar Building (BSI) in Johor Bahru on Sunday. In a statement today, the ministry said that initial findings by the Department of Labour Peninsular Malaysia (JTKSM) have found […]