What specific recruitment cost increases do employers face?

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Employers Face Increased Costs Due to Outsourcing, Levies, and Medical Inspections

Employers are encountering a rise in foreign worker recruitment costs, citing several factors that have escalated expenses. These include the outsourcing of government services related to recruitment, the imposition of levies, and the high cost associated with medical inspections. The expiration of FOMEMA's 15-year concession has also been identified as a contributing factor to these increased expenditures.
Outsourcing of Government Services

The Malaysian Employers Federation (MEF) has pointed to the outsourcing of services by the government as a key driver of higher recruitment costs. This shift in service provision has led to an overall increase in the financial burden placed upon employers seeking to hire foreign workers.
Imposition of Levies

The introduction and imposition of levies have directly contributed to the escalating costs associated with recruiting foreign labour. These mandatory charges add a significant financial component to the recruitment process, impacting the overall expenditure for businesses.
High Medical Inspection Costs

Employers are also contending with elevated costs stemming from medical inspections required for foreign workers. These inspections, a necessary part of the recruitment process, have become more expensive, further increasing the financial outlay for businesses.
Expiration of FOMEMA Concession

The conclusion of FOMEMA’s 15-year concession has also been identified as a factor contributing to the rise in recruitment expenses. This change in the service arrangement has, according to the MEF, led to increased costs for employers.

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