KUALA LUMPUR, 29 June 2026 – Yayasan Usahawan Malaysia (YUM) welcomes the Government’s continued efforts to modernize Malaysia’s foreign worker recruitment system and commends the Ministry of Human Resources for engaging industry stakeholders as part of its reform process.
As Malaysia strives to become a more competitive investment destination, YUM believes every reform must achieve two equally important objectives: strengthening governance while making it easier and more affordable for businesses to operate.
YUM emphasizes that Malaysia’s entrepreneurs and employers have consistently supported reforms that promote transparency, accountability, and digitalization. However, these reforms should ultimately reduce the cost of doing business, rather than introduce additional financial obligations.
Over the years, Malaysian businesses have collectively borne billions of Ringgits in recruitment-related costs, administrative charges, and compliance expenses. This presents an opportunity to redesign the system by eliminating inefficiencies, reducing unnecessary bureaucracy, and ensuring that technology delivers real value to employers and workers alike.
Datuk Nitesh Malani: “This is our opportunity to build a World-Class Recruitment Ecosystem.”
Chairman of Yayasan Usahawan Malaysia, Datuk Nitesh Malani, said the Government now has an opportunity to introduce reforms that could serve as a benchmark for the region.
“The business community supports reform and transparency. We support stronger governance. We support any initiatives that protect workers while making Malaysia competitive.”
“Our humble appeal is that businesses should not be asked to bear additional costs for a system that is intended to improve efficiency. Technology should reduce costs, not increase new ones.”
Datuk Nitesh said the proposed reforms should focus on eliminating longstanding inefficiencies and leakages that have contributed to the escalation of recruitment costs over many years.
“Malaysian employers have invested billions of Ringgits in recruitment processes, compliance, and administrative costs. This is the moment to simplify the system, remove unnecessary layers and ensure that every ringgit spent creates value for businesses, workers, and the nation.”
He also expressed confidence in the leadership of YB Dato’ Sri Ramanan, Minister of Human Resources.
“We believe YB Dato’ Sri Ramanan has a genuine opportunity to leave a lasting legacy by introducing reforms that restore confidence, improve governance, and make Malaysia’s Labour ecosystem one of the most efficient and transparent in the region.”
“We respectfully appeal to the Minister to continue listening to the voices of employers, SMEs, and industry stakeholders.
Together, Government and industry can build a system that is practical, trusted, and sustainable for generations.”
A Shared Vision for Economic Growth
YUM believes that successful policy reforms are achieved through constructive consultation and collaboration between government and industry.
The Foundation recommends that any new recruitment platform should:
• Realize measurable reductions in recruitment costs and processing durations;
• Eliminate unnecessary bureaucratic procedures and administrative redundancies;
• Enhance transparency and accountability throughout the recruitment ecosystem;
• Maintain minimal implementation fees consultations.
during transition; and
• Be continually refined through stakeholder
Malaysian entrepreneurs remain dedicated to supporting national growth and employment creation. By ensuring reforms are efficient, transparent, and business-friendly, Malaysia can boost investor confidence, increase productivity, and reinforce its standing as one of the region’s most competitive economies.
“Our objective aligns with that of the Government — a stronger Malaysia. With business growth fostered by confidence, investments will rise, quality employment will expand, workers will benefit, and the nation’s economy will strengthen. This is an aspiration we should pursue collectively.”
Yayasan Usahawan Malaysia (YUM) is a prominent non-profit foundation committed to promoting entrepreneurship, empowering SMEs, and fostering sustainable economic development. Through advocacy, strategic partnerships, business development programs, and regional engagement, YUM endeavors to fortify Malaysia’s entrepreneurial landscape and cultivate an environment conducive to innovation and growth.
YUM is also the founder of the (SEBA), a prestigious regional platform recognizing excellence in entrepreneurship, corporate leadership, and innovation while encouraging collaboration between the public and private sectors across ASEAN.
Media Contact
Ms Suzy (media@mypreneurship.org)
Corporate Communications & Media Relations
Yayasan Usahawan Malaysia (YUM)
