22 July 2005 – The Philippine Embassy in Kuala Lumpur, Malaysia reported to the Department of Foreign Affairs that the Malaysian government, starting 01 August 2005, will be implementing new rules on the hiring of foreign workers, including overseas Filipino workers or OFWs.  .

Chargé d’Affaires a.i. (CDA) of the Philippine Embassy Luis T. Cruz said these new rules governing the hiring and employment of foreign workers in Malaysia may be seen as a positive development and part of the efforts of the Malaysian government to ensure the protection of foreign workers from possible exploitation by placement agencies.

CDA Cruz added that based on information gathered by the Philippine Embassy, these new rules were drawn up by the Malaysian Cabinet Committee on Foreign Workers during a meeting on 05 July, which as chaired by Deputy Prime Minister Datuk Seri Najib Hazak.  Media reports in Malaysia, which the Philippine Embassy monitors, quoted Deputy Prime Minister Najib as saying that the new procedures are going to be put into place with the hope of reducing red tape and waiting period for employers to be able to bring in foreign workers.

The new rules, CDA Cruz reported, are also aimed at reducing the maximum amount of recruitment fees that may be charged by recruitment agencies as some agents sometimes charge exorbitant amounts.   The new rules would also ensure that the payment of the first six months of salary to a domestic worker will now be made directly to the domestic workers instead of remitting it to the recruitment agency.  This old practice, according to Deputy Prime Minister Najib is “morally wrong” and they are instituting the new practice to follow international law.

During the period of transition to the implementation of the new rules, Deputy Prime Minister Najib was quoted as saying that if the foreign workers still do not receive their salaries from their employers, they may complain directly to the Malaysian government.

The salient features of the new rules on the hiring of foreign workers, according to CDA Cruz, are as follows:

· Employers will be given the authority to source, directly interview and hire foreign workers (under the old practice, recruitment agencies source and provide foreign workers to employers);
· The process for the approval to hire foreign workers will be fast tracked (under the old system, it takes agencies two to four weeks to get approval to deploy a foreign worker);
· Government Levy to employers who hire workers in the service sector will be increased, while levy to employers who hire workers in the welfare homes service will be reduced;
· Government levy for a foreign domestic worker shall remain at Malaysian Ringgit (RM) 360, but a higher levy of RM540 is imposed for each subsequent domestic worker hired after the first workers;
· Recruitment fees for domestic workers will be capped at RM 2,500 (presently, some recruitment agencies charge up to RM5,000);
· Agencies outsourcing foreign workers are required to post bonds for every worker, provide housing and a minimum wage if the worker still doesn’t have a job upon deployment in Malaysia;
· Employers will be paying salaries directly to their domestic workers beginning the first month of service (presently employers remit the salaries for the first six months to the recruitment agencies);
· Local Golf clubs are enjoined to hire only local but skilled and experienced golf caddies. END
 
 

/bjg