Hiring foreign workers in Malaysia is essential for many industries — from manufacturing and construction to services and plantations. However, the recruitment process is complex and tightly regulated. A single mistake can lead to costly delays, penalties, or even blacklisting by the authorities.
In this article, we’ll explore the top 5 common mistakes employers make when recruiting foreign workers in Malaysia — and how your business can avoid them through proper planning and compliance.
1. Hiring Through Unlicensed Agents
One of the biggest mistakes employers make is engaging unlicensed or unverified recruitment agents.
Under Malaysia’s labour laws, only agencies holding a valid Licence C from the Department of Labour (JTKSM) are authorized to recruit and place foreign workers. Working with unlicensed agents often leads to fraud, forged documents, and legal complications.
✅ How to Avoid:
Always verify your agency’s licence number through the Ministry of Human Resources (MOHR) before signing any recruitment agreement.
2. Submitting Incomplete or Incorrect Documents
The foreign worker recruitment process involves multiple approvals — Quota Application, Visa with Reference (VDR), Medical Screening, and Work Permit (PLKS).
Even a small clerical error, like a spelling mistake or missing signature, can cause significant delays.
✅ How to Avoid:
Maintain a document checklist and assign a compliance officer or work with an experienced licensed employment agency to ensure all submissions meet government requirements.
3. Ignoring Worker Accommodation Compliance (Act 446)
Many employers overlook the importance of proper worker housing under the Workers’ Minimum Standards of Housing and Amenities Act 1990 (Act 446).
Providing unapproved or overcrowded accommodation can result in fines of up to RM50,000 per offence and may affect future quota approvals.
✅ How to Avoid:
Ensure your accommodation has a valid Certificate of Accommodation (CoA) issued by JTKSM, with adequate space, sanitation, and safety facilities.
4. Missing Permit and Medical Renewal Deadlines
Every foreign worker’s permit (PLKS) and FOMEMA medical screening must be renewed annually. Missing these deadlines can cause immigration penalties or worker deportations — and employers are fully responsible for such lapses.
✅ How to Avoid:
Use a digital tracking system or spreadsheet to monitor all worker renewal dates and automate reminders for upcoming expiries.
5. Lack of Post-Arrival Support
The recruitment journey doesn’t end once workers arrive in Malaysia. Many employers fail to provide orientation, communication support, or cultural adaptation guidance — resulting in misunderstandings and high turnover rates.
✅ How to Avoid:
Implement a post-arrival induction program that introduces workers to company policies, safety practices, and welfare contacts.
Final Thoughts
Recruiting foreign workers in Malaysia requires attention to detail, compliance, and responsibility.
Avoiding these five mistakes can protect your business from costly penalties and ensure a smoother, legally compliant process.
At Agensi Pekerjaan kami Innovasi Sdn Bhd, we are a licensed employment agency (Licence C ) with proven expertise in foreign worker recruitment, documentation, and accommodation management.
✅ We’re here so you don’t make these mistakes.
From quota application to worker arrival — we handle every step with full legal compliance and transparency.