The issue of skills and talent in Malaysia, especially in the digital and technology sectors, is one of the catalysts for economic growth. This issue is also an obstacle faced by Malaysian companies towards growth, which also results in a lack of high-paying and high-value work.
In this light, the Business Facilitation Special Task Force (PEMUDAH), after discussions at a meeting on May 31, 2023, arrived at two initiatives to address the issue.
Minister of Economy Rafizi Ramli, in a statement, said to simplify the visa process for foreign skilled workers, PEMUDAH has put plans in place for an integrated visa system for skilled foreign workers (or called the Single Window Approach) which is expected to go live from June 15, 2023.
Following this, an Employment Pass (EP) application process for expatriates through the Single Window Approach will be done in phases.
All stakeholders, especially Approving and Regulatory Agencies that are directly involved in expatriate management, are required to streamline the governance and approval process of the Employment Pass applications through a new system which will be known as Xpats Gateway.
“Phase 1 involves the development of the Xpats Gateway System by TalentCorp and all Approving and Regulatory Agencies must use the gateway from June 15, 2023. While Phase 2 involves Approving and Regulatory Agencies such as MDEC and IRDA that have existing systems and require integration through the Application Program Interface (API) will be ready no later than August 15, 2023,” he said.
Rafizi explained, in this new application process, Tier 1, Tier 2, and important sectors will be processed within 5 working days. An integrated system accompanied by a shortening of time is expected to reduce the bureaucracy associated with the recruitment of foreign talent, where their knowledge and skills will benefit the country.
The integrated system concept is part of the government’s efforts to reform the processing system so that it is more user-friendly and can save processing time in relating to government affairs.
The second decision that has been agreed to by PEMUDAH today is about the restructuring of contracts in the cleaning and laundry industry. The contract method will change from being based from number of employees (headcount-based) to a performance-based contracts (performance-based).
With the implementation of performance-based contracts, contractors must comply with certain criteria, which include productivity improvement plans, innovation, and technology, in addition to operational, price, quality, and work record criteria.
Contractors will be evaluated according to monthly scores and will be paid according to the performance achieved.
This implementation is capable of changing the cleaning and laundry industry from a labour-intensive and low-skilled industry to a high-skilled and technology-based industry.
This will also impact the economic structure by advancing the industry to a higher value chain, while also attracting local workers back into the sector. The government will start with a pilot implementation with this new method at premises which have seen to create a big impact, before implementing it throughout the country.
