PETALING JAYA:
Employers should not be made solely responsible for bearing the cost of providing protection to foreign workers, an industrial group said in calling for a fairer approach.
The Malaysian Industrial, Commercial and Service Employers Association (MICSEA) said while workers’ welfare was a priority, placing the entire cost of insurance, medical coverage, welfare, and protection schemes on employers would have a disproportionate impact on businesses, especially small and medium-sized enterprises.
“Many companies are already under pressure from rising compliance costs. An additional one-sided obligation may threaten sustainability and future hiring,” said its president, Alvin Lai.
Lai said the protection of foreign workers was not solely an employer issue, but a matter of national interest involving multiple stakeholders.
In a statement, he suggested a shared-cost framework as a fairer solution, where government, employers and employees each contribute towards protection benefits.
He said this would ensure equity while strengthening corporate compliance.
He was responding to former Klang MP Charles Santiago’s suggestion that the government include migrant and informal workers in the 24-hour social protection plan announced on Monday.
Santiago said it was crucial that no one was left behind, and that benefits must be made “portable across borders” for migrant workers.
Lai cautioned against excessive cost burdens, saying they might discourage businesses from hiring foreign workers legally, potentially driving labour demand into unregulated channels.
“A balanced and practical system will prevent this and ensure workers remain protected under lawful employment structures,” he said.
Clear policy framework needed
Lai also called for transparent guidelines to define which type of protection is mandatory, how costs are to be allocated, and how claims will be managed.
This is to ensure that employers must not be left with ambiguous or retrospective liabilities, he said.
He proposed the establishment of a reliable reimbursement mechanism, saying employers were often required to make 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.
He also called for government subsidies or phased approaches to be introduced to allow employers, particularly those in SMEs, time to adjust to any foreign worker protection policy.
Free Malaysia Today. (2025, October 1). Unfair for only bosses to pay foreign workers protection costs, says group. Free Malaysia Today. Retrieved from https://www.freemalaysiatoday.com/category/nation/2025/10/01/unfair-for-only-bosses-to-pay-foreign-workers-protection-costs-says-group
- PERKESO reforms ensure comprehensive protection for all workers, says HR Minister
KUALA LUMPUR: The Human Resources Ministry, through the Social Security Organisation (PERKESO), continues to undertake comprehensive reforms to strengthen social protection for all contributors, including gig workers and foreign workers, says Steven Sim Chee Keong. The Human Resources Minister said that 10 major reforms have been implemented over the past two years to provide more […] - KESUMA’s drive for fair work and shared progress
The LIFE AT WORK Awards (LAWA) hosted by Talent Corporation Malaysia Bhd (TalentCorp), celebrates its 10th edition, solidifying its influence as a platform that drives transformation in diversity, equity and inclusion (DEI) in Malaysian workspaces. With concerns regarding human capital rising amid the ubiquity of artificial intelligence (AI), it is crucial now more than ever […] - ‘Many employers not making mandatory Perkeso, EPF contributions’
KLANG: The Human Resources Ministry has detected a worrying number of employers still refusing to register or make mandatory contributions to the Social Security Organisation (Perkeso) and Employees Provident Fund (EPF) for their workers. The ministry stressed that such actions violated employees’ rights and denied them basic protection. Deputy Human Resources Minister Datuk Seri Abdul […] - Nearly 500 labour law breach cases detected
KLANG: Almost 500 investigation papers have been opened against employers for breaches of labour laws as of Nov 1, says Deputy Human Resources Minister Datuk Seri Abdul Rahman Mohamad. Among the most common labour law offences are employers’ failure to make the mandatory contributions to the Social Security Organisation (PERKESO) or the Employees Provident Fund […] - MOHR Won’t Tolerate Companies Preventing Workers From Forming Union
The Industrial Relations Department of the Human Resources Ministry (MOHR) has reaffirmed its commitment to safeguarding workers’ rights after a gathering and memorandum submission by several labour unions concerning alleged union-busting practices. The department emphasised that it respects the constitutional right to peaceful assembly and freedom of speech, while reiterating that workers’ rights to form […] - Court Orders Employer To Pay 93 Migrant Workers Outstanding Wages
Human Resources Minister Steven Sim Chee Keong has welcomed the Shah Alam High Court’s decision to uphold an earlier ruling by the Labour Court, ordering an employer to pay outstanding wages to 93 migrant workers who were left without work upon arrival in Malaysia. The High Court on 31 October 2025 affirmed the Labour Court’s […] - No tolerance for employers who withhold wages, says HR Minister
The Ministry of Human Resources (KESUMA) has urged all employers to take heed of the recent Shah Alam High Court ruling which upheld a decision in favour of 93 migrant workers in an unpaid wage case. Human Resources Minister Steven Sim Chee Keong said the Oct 31 decision sends a strong message that failure to […] - THE HEART WORK REVOLUTION
TEN years after its inception, the Life at Work Awards (LAWA) 2025 marked not just a milestone but a movement that celebrates how Malaysia’s workplaces are evolving with compassion, flexibility and purpose. Hosted by Talent Corporation Malaysia Bhd (TalentCorp), the gala night honoured organisations leading the way in shaping a fairer, more progressive, human-centred world […] - Group wants clear framework, pilot projects before expanding EIS to gig workers
PETALING JAYA: The Malaysian Industrial, Commercial and Service Employers Association (Micsea) has called on the government to set a clear policy framework and run pilot projects before expanding the Employment Insurance System (EIS) to gig and platform-based workers. The association said the plan, announced by human resources minister Steven Sim in the Dewan Rakyat on […] - Employer group seeks clarity on foreign worker pay rules after court ruling
KUALA LUMPUR (Nov 3): The Malaysian Industrial Commercial & Service Employers Association (MICSEA) is calling on the Ministry of Human Resources (MOHR) to issue clear and structured guidelines on wage payment timelines for foreign workers, following a recent court ruling that employers must pay wages from the moment these workers arrive in Malaysia. The call […]