Abang Johari (seated centre) speaks to reporters after officiating at the Sarawakku Sayang 2026 programme in Bintulu on Saturday. – Ukas photo
BINTULU (May 23): The Sarawak government is reviewing the rate structure of the Foreign Workers Transformation Approach (FWTA) following concerns raised by industry players over the recent increase in renewal fees.
Responding to questions on the matter, Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said discussions had already been held to reassess the rates.
“There have already been negotiations for us to review the rates,” he told reporters after officiating at the Sarawakku Sayang 2026 programme here.
According to Abang Johari, Deputy Minister in the Premier’s Department (Labour, Immigration and Project Monitoring) Datuk Gerawat Gala will provide further details on the matter later.
The issue was recently highlighted by industry players affected by the increase in FWTA renewal fees, with Pending assemblywoman Violet Yong also raising concerns.
Asked about claims that the fees collected were being channelled solely to FWTA Sdn Bhd, Abang Johari said the matter was subject to provisions under the existing contract.
“No, because Violet does not have any access to what they (FWTA Sdn Bhd) are going to do. There is a provision in the contract,” he said.
The renewal fee is scheduled to increase from RM904 to RM1,484 beginning June 1 this year, before rising further to RM1,854 from Jan 1 next year, prompting calls from industry groups for the state government to reconsider the hike amid ongoing global economic challenges.
Sarawak Manufacturers Association (SMA) member companies have called for FWTA renewal fees to either be maintained at the existing rate or for the proposed increase to be deferred.
SMA secretary-general Stephen Ang said the increase in FWTA-related fees from RM904 to RM1,854 would add further financial pressure on labour-intensive industries already operating under tight margins.
“The manufacturing sector, especially SMEs, continues to face significant operational challenges.
“Businesses are managing rising production costs, increasing logistics and shipping expenses, compliance costs, utility adjustments, minimum wage implementation, and uncertainties in the global economic environment,” Ang said in a statement.