KUCHING: The Sarawak government and business sectors must cooperate to ensure the Sarawak Foreign Workers Transformation Agenda (FWTA) does not place excessive pressure on industries amid ongoing changes.
The FWTA is currently in its transition phase, with concerns emerging from the business community following the planned increase in foreign worker permit renewal fees.
Sarawak United People’s Party (SUPP) Youth Central vice chairman Kelvin Hii said the Sarawak government plans to increase foreign worker permit renewal fees from the current RM904 to RM1,484 beginning June 1, 2026, and subsequently to RM1,854 in 2027.
This, he said, has sparked widespread discussion among businesses, with concerns over potential manpower shortages and rising operational costs.
Hii said he supports the views of industry groups such as the Federation of Malaysian Manufacturers (FMM) Sarawak, the Malaysian Palm Oil Association (MPOA), and the Sarawak Housing and Real Estate Developers’ Association (SHEDA), which have called for sufficient time and flexibility for businesses to adjust during the transition period.
He also acknowledged the clarification that the fees imposed are not meant as revenue collection for the Sarawak government but are intended to improve systems and support the transformation process.
“This demonstrates the Sarawak government’s commitment to addressing the issue while understanding the needs of the business sector,” he said in a statement issued today (May 24).
However, amid ongoing inflationary pressures, Hii hopes that both the government and the business community can work together to find a balanced approach to reduce the impact and overcome the challenges collectively.
“Sarawak is currently still undergoing rapid development, and there remains a shortage of manpower in many sectors.
“Many labour-intensive jobs continue to rely heavily on foreign workers, who are generally seen as a more affordable and suitable labour option,” he said.
At the same time, Hii hopes that the Sarawak government will also explore ways to improve the quality and competitiveness of local workers so that a better balance can eventually be achieved between foreign and local labour needs.
Hii added that while the state continues to advance economically, it is still necessary to ensure that manpower supply is not disrupted, suggesting that the implementation of fee increases could be reconsidered or postponed until a stronger local workforce is developed.
In the past, businesses applying for foreign workers already faced many challenges, including complicated procedures, high costs, and even fraudulent intermediaries and scams.
“As a result, some businesses struggling with labour shortages were forced to seek alternative means, including the employment of illegal workers.
“Therefore, the Sarawak government’s introduction of the FWTA, which digitalises and transforms the entire application process, is indeed a positive and necessary change,” he said.
He added that the reform will also help protect job opportunities for Sarawakians while improving efficiency in foreign worker management, and urged the government to continue supporting businesses throughout the transition period.
