Micro Biz Association: Politicising FWCMS May Set Back Progress Made in Managing Foreign Workers

KUALA LUMPUR, 27 April 2026 — Tan Peng Beng, President of the Malaysian Micro Business Association (MAMBA), today cautioned against the politicisation of Malaysia’s Foreign Worker Centralised Management System (FWCMS), warning that such actions risk undermining the meaningful progress already achieved in strengthening governance, efficiency and transparency in the recruitment of foreign workers.

Drawing reference to recent statements by Bestinet Sdn Bhd, Tan noted that the implementation of FWCMS and the broader push towards digitalisation have addressed longstanding systemic weaknesses that previously plagued the foreign worker recruitment ecosystem. “The transition from fragmented, manual processes to a centralised digital platform has resolved many of the inefficiencies and leakages that once enabled abuse, delays and opacity,” he said.

FWCMS Progress at Risk Amid Political Debate

Tan highlighted that micro businesses and SMEs — including hawkers, market traders, ‘pasar malam’ operators, small sundry shop owners and even workshops — form the backbone of Malaysia’s economy and are heavily reliant on migrant workers to support their daily operations. “Any disruption to the system will not just affect large corporations, but will disproportionately impact micro businesses and small enterprises, creating uncertainty, operational disruptions and financial hardship for those who can least afford it,” he said.

He stressed that from the perspective of businesses on the ground, the system is functioning effectively and has brought tangible improvements. “For many employers, particularly within the micro and SME segments, the system works. It has improved processing timelines, enhanced transparency and provided a more structured and reliable framework that businesses can depend on,” he added.

Micro Biz Warns Against Politicising FWCMS

Tan further underscored that the FWCMS has successfully operated across five different government administrations, a track record which, in his view, reflects both the robustness of the system and the stringent processes underpinning its implementation and oversight. “Very few systems can demonstrate continuity and relevance across multiple administrations. This alone speaks volumes about the system’s resilience and institutional value,” he said.

Importantly, Tan highlighted that many of the previous inefficiencies — particularly on the demand side involving employer applications and approvals — have been significantly addressed through digitalisation. However, he acknowledged that challenges remain, particularly those originating beyond Malaysia’s jurisdiction, including issues within source countries such as recruitment practices, documentation integrity and worker welfare.

“These are structural and cross-border issues that cannot be resolved by Malaysia alone. What is needed is the continued evolution of solutions, including the use of more advanced digital technologies, cross-border integration and stronger international cooperation,” he said.

While acknowledging that public debate on FWCMS is both necessary and healthy, Tan stressed that such discourse must be constructive and grounded in facts rather than driven by political agendas. “We welcome scrutiny and discussion, but it must be responsible. Politicising the system without a full appreciation of its impact risks reversing the gains that have been made.”

He concluded by urging all stakeholders — policymakers, industry players, civil society and technology providers — to work collaboratively towards a more holistic and sustainable solution. “Our collective priority should be to protect the welfare of migrant workers, eliminate profiteering and ensure that Malaysian businesses, particularly micro businesses and SMEs, are supported by a fair, efficient and transparent system. This is not an issue for political contestation, but one that demands unity and practical solutions.”