SARAWAK is seeking extended discounts under the Foreign Worker Transformation Approach (FWTA) as employers continue to raise concerns over the RM1,854 charge imposed under the system.
Deputy Minister in the Premier’s Department for Labour, Immigration and Project Monitoring Datuk Gerawat Gala said discussions with the service provider behind FWTA were still ongoing.
He said the provider had already agreed to continue offering discounts until the end of the year, although he did not disclose the amount.
“What the service provider has done until the end of the year is to provide some discounts. But we’ll see. It’s up to the service provider.
“If they can continue the discounts, we will have to discuss very closely with them. I look forward to a win-win situation because we also want to make sure that it’s not an unnecessary burden on the industries,” he said.
Separately, Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said the Sarawak government was reviewing FWTA-related rates before the current arrangement expires.
“Discussions have been held to review the rates, and the contract will first be examined,” he said.
The issue has sparked concern among major industry groups over the RM1,854 FWTA fee and a proposed increase in the labour licence renewal charge for foreign workers.
The renewal fee is expected to increase from RM904 to RM1,484 beginning June 1, 2026, before rising further to RM1,854 on Jan 1, 2027.
Fee structure linked to private financing
Gerawat described FWTA as a strategic reform aimed at improving foreign worker management in Sarawak.
He said the system was designed to improve efficiency, transparency and sustainability for employers, industry players and the government, while also addressing issues involving illegal foreign workers through a more structured and regulated framework.
“The initiative has been developed and implemented in accordance with established legal, administrative and financial procedures, and has received the necessary approvals from the relevant state authorities.”
He added that the initiative remained subject to regular review, audit and oversight to ensure accountability and value for money.
Gerawat explained that FWTA operates under a Public-Private Partnership (PPP) model, where the entire ecosystem is financed by the private sector.
“The FWTA Project is implemented through the Public-Private Partnership (PPP) model, under which all capital development and operating cost for the project ecosystem is fully financed by the private sector.
“The fee of RM1,854, as approved by the Government, is fully utilised for the operation, maintenance, and enhancement of the FWTA initiative in accordance with Government directives.
“The Government does not receive or take any part of the RM1,854 as the whole sum is paid to the service provider,” he said when responding to concerns over transparency in FWTA revenue matters.
He said revenue collected through the platform was channelled back into infrastructure development, including Immigration and Labour Integrated Centres, digital systems, cybersecurity upgrades and workforce development.
“The government is not in a position to unilaterally reduce the charges because the fee structure had already been contractually agreed with the service provider.”
Gerawat stressed that the fee was not a government levy but a cost recovery mechanism to finance the new ecosystem.
“The amount is determined by the service provider.
It is more like the amortisation of capital costs over a period of time, because there has been significant expenditure on developing the ecosystem as well as physical officer centres throughout the state.
“All operating costs also rest with the service provider,” he said.
He said the state hoped wider usage of the platform would eventually allow the service provider to recover costs faster and continue offering discounts.
“In the future, as utilisation increases and the service provider is able to recuperate their costs, we can always ask them to offer discounts.
It is our intention to make sure it is not a big burden to the industry,” he said.
Breakdown of approval figures
Gerawat also addressed claims involving 106,242 approvals allegedly generating RM200 million in revenue.
He said 36,672 Approval in Principle (AP) applications were approved through FWTA in 2025.
“Of these, 35,336 APs proceeded to payment.
“The remaining 69,570 APs were processed manually prior to the implementation of the FWTA system and were not subject to the fee of RM1,854,” he said.
He added that FWTA Sdn Bhd was the officially appointed subcontractor authorised to collect payments on behalf of the service provider.
“The company’s appointment was approved by the government, carried out in accordance with established procurement procedures, and remained subject to audit and oversight by the relevant government authorities.”
Approval process sped up Gerawat said FWTA had significantly shortened approval processing times.
He said turnaround time had been reduced from 192 days to 61 days through coordination between state and federal agencies, with a further reduction to 30 days targeted by the end of this year or early 2027.
“With the shortening of the turnaround period, employers do not have to spend as much money maintaining their workers overseas while waiting for permits, and the workers can start earlier.
“That is a direct benefit to the industry,” he said.
He said the FWTA system, managed by the Immigration and Labour Management Unit through the Sansols platform, enabled employers to submit and monitor applications online.
“The platform is also being integrated with the federal MyIMMS system to further streamline data sharing and processing.”
Gerawat added that employers must first advertise vacancies to Sarawakians before hiring foreign workers, in line with the state’s local employment policy.
“For a new ecosystem with better efficiency, there has naturally got to be some cost to it. But our intention is to make sure it is not a big burden to the industry,” he said.
Engagement with stakeholders continues
Gerawat said FWTA was guided by principles aimed at protecting employment opportunities for Sarawakians, strengthening governance and ensuring economic growth was supported by a wellregulated labour ecosystem.
“The government remained committed to transparency, although any disclosure of specific contractual or commercial arrangements was subject to legal, regulatory and confidentiality obligations.”
He said the government would continue engaging industry players to ensure implementation remained practical and did not place excessive pressure on businesses.
“The Government will continue to engage with industry players to ensure that the implementation of the FWTA initiative does not impose undue burden on the industry and remains practical, efficient, and aligned with sector needs, while safeguarding the welfare of Sarawakians and ensuring that their access to employment and economic opportunities is duly protected and prioritised,” he said.
