Kuching: The Sarawak Premier’s acknowledgment that the Sarawak Government is reviewing the Foreign Workers Transformation Approach (FWTA) fee structure is a welcome but overdue development. This review only comes after the issue was raised by me in the Sarawak State Legislative Assembly and following strong objections from industry players, employers and SMEs burdened by excessive and escalating costs.
However, the most fundamental question remains unanswered i.e why did the Sarawak Government allow FWTA Sdn Bhd to impose such exorbitant charges on employers in the first place without proper transparency, accountability and public scrutiny?
The Premier’s statement that there are “provisions in the contract” does not adequately address the serious concerns raised by employers and the rakyat. If such provisions exist, then the Sarawak Government should disclose the contractual arrangement and explain what justifies charging employers up to RM1,854 per foreign worker approval. Employers deserve to know how these fees are determined and who benefits from them.
Based on the scale involved, FWTA Sdn Bhd’s collections could easily exceed RM200 million annually. Such a massive amount of money cannot be treated as a private contractual matter shielded from public scrutiny. The Sarawak Government owes the public and industry players a full explanation as to how these fees are utilised and whether sufficient oversight exists to ensure accountability.
More urgently, the Sarawak Government must direct FWTA Sdn Bhd to immediately stop collecting the RM324 fee for the so-called foreign worker identity card.
Many employers have paid for these identity cards, yet foreign workers do not receive the physical cards despite payment being made. How can employers be charged for a service or product that is never delivered?
The legal status and practical purpose of this card are also highly questionable. I was made to understand immigration enforcement authorities do not recognise or acknowledge this card because it is not issued by either the Federal or State Immigration Department, but by a private company. If immigration officers themselves do not recognise this card during inspections or enforcement operations, then what exactly are employers paying RM324 for?
Can this privately issued card be relied upon as a valid legal document in any enforcement proceeding or court of law? If it carries no legal recognition and is not even consistently issued, then the Sarawak Government must explain why employers are being compelled to pay for something with questionable legal standing and doubtful practical value.
This issue goes beyond a mere fee adjustment. It concerns accountability, transparency and whether employers are being forced to bear unjustifiable costs through a private intermediary at a time when businesses are already struggling with rising operational costs, labour shortages, wage increases and global economic uncertainty.
Sarawak’s immigration autonomy should be exercised to protect employers and workers , not to allow private companies to simply profit from questionable charges without proper accountability.
Violet Yong
ADUN Pending
25 May 2026
