On July 6, 2026, Malaysia fully centralised the management of foreign worker quota applications under the Human Resources Ministry. All quota requests must now be submitted and processed through the digital e-Quota module within the Foreign Worker Centralised Management System (FWCMS), ending previous case-by-case manual approvals [1, 2, 3, 4, 5]. The Cabinet had approved this centralisation on July 1, following a June 30 decision to streamline approvals via consolidation [1, 2].
Human Resources Minister Datuk Seri R. Ramanan confirmed the full implementation of the digital system as a key step to improve efficiency and transparency in foreign worker management [2, 3, 4, 5]. The Federation of Malaysian Manufacturers (FMM) welcomed the digitalisation but urged clear operational guidelines, robust system capacity, and ongoing dialogue with industry to prevent bottlenecks during the transition [1, 2].
FMM president Jacob Lee Chor Kok called for a reform of the current levy system. He proposed a Multi-Tier Levy Mechanism (MTLM) to replace rigid sectoral caps. Under this plan, companies with foreign workers making up 10 to 15 percent or less of their workforce would pay lower levy rates, potentially below the existing RM1,850 fee. Businesses with higher reliance on foreign labour would face progressively higher charges based on a transparent formula. Lee said the MTLM "should serve as an economic and industrial transition tool rather than a restrictive labour access policy, with levy proceeds channelled into automation, workforce development and productivity support, particularly for small and medium enterprises" [1, 2].
The Malay Chamber of Commerce Malaysia (DPMM) supported the new digital system and emphasised the importance of monitoring system stability, processing times, clarity, and employer support to ensure smooth operations. DPMM president Norsyahrin Hamidon said it could "speed up the application process, reduce compliance costs, and increase the business community's confidence in the government's delivery system". He added that foreign worker deployment should only address labour shortages without undermining efforts to improve job opportunities, skills, and productivity for Malaysians [3, 4, 5].
The transition marks the formal end to manual and case-by-case quota approvals for foreign workers, consolidating management under the Human Resources Ministry via the digital e-Quota module of FWCMS. Industry groups remain engaged with the government to refine the system and levy structure in the coming months.
