Gerawat Gala
MIRI (May 31): The Sarawak government has taken note of feedback and concerns raised by industry stakeholders and business associations regarding the implementation of the Foreign Workers Transformation Approach (FWTA) fee framework, said Datuk Gerawat Gala.
The Deputy Minister in the Premier’s Department (Labour, Immigration and Project Monitoring) said in a statement on Sunday (May 31) that the state government wishes to clarify that the fee for foreign worker work permit applications and renewals is RM1,854, as stipulated under the contract with the appointed service provider.
“However, following continued engagement and negotiations with industry players, employers have been granted a 51 per cent discount on FWTA renewal fees from Jan 2025 to June 2026, reducing the cost to RM904 per renewal.
“From July to Dec 2026, a 20 per cent discount will be applied, bringing the renewal fee down to RM1,483. Any further discounts beyond December 2026 will be subject to additional negotiations,” he said.
Gerawat added that Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg has directed that the state government undertake a study of the current FWTA fee structure.
He said that the study aims to assess the operational impact on industries that are heavily reliant on non-resident labour, while ensuring that the objectives of modernising, securing and digitalising Sarawak’s labour management ecosystem are preserved.
It will also, he said, involve engagement with industry players and business organisations.
“Whilst the government is undertaking the aforesaid study and assessment, employers are also urged to review their own cost structure for recruitment of non resident workers including checking with the relevant foreign consuls or embassies for their authorised recruitment agents in the country of origin to avoid dealing with unauthorised and unscrupulous agents which can give rise to unnecessary cost,” he said.
He also encouraged employers to train and familiarise their human resource personnel with the FWTA system, enabling companies to submit applications online directly and reduce, or at least minimise agency costs.
He also urged all parties need to work together to create an efficient and competitive eco system as facilitated by FWTA for management of non resident workers.
He explained that FWTA was implemented through a public-private partnership (PPP) to digitalise the recruitment process for non-resident workers, improving efficiency, transparency and approval timelines without burdening taxpayers.
The system also allows the Sarawak government to maintain its own database on non-resident workers and to monitor processes between state and federal agencies supporting FWTA.
“With the implementation of FWTA, processing time has been reduced from 197 days to an average of 60 days; a reduction of nearly 70 per cent. This significantly shortens waiting periods for employers and delivers tangible value through greater certainty, improved planning, and financial efficiencies,” he said.
He added that prior to FWTA, employers bore substantial hidden costs, including lost revenue from an additional 137 days of waiting time or worker downtime, repeated administrative travel and visits to government offices, operational uncertainty, and the inability to effectively plan harvests schedules, construction timelines, or production cycles.
These delays, he said, also resulted in opportunity costs from delayed or missed projects and contracts.
“In reality, the previous system was not cost-free; its costs were simply indirect, unquantified and absorbed by employers,” Gerawat revealed.
The state government, he added, remains committed to fostering a competitive and resilient business environment for industries, businesses and investors.
“Further updates or adjustments will be communicated in due course upon completion of the study and assessment of the FWTA fee structure,” he said.