The Malaysian government announced plans to restructure its foreign worker management system to make it more coordinated, efficient, and aligned with industry needs. The decision was made during a special meeting of the Cabinet Committee on Foreign Workers chaired by Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi on June 30, 2026, in Parliament [1, 2].
The One Stop Centre for Foreign Worker Management will be placed under the Ministry of Human Resources to streamline oversight. Authorities will review foreign labor requirements more strategically, based on actual industry needs rather than fixed quotas [1, 2, 3].
Deputy Prime Minister Ahmad Zahid Hamidi said the government's goal is "to ensure the foreign worker management system becomes more efficient and upholds integrity, while balancing industry needs, national security and employment opportunities for Malaysians" [1]. He added that every measure taken would continue to be guided by "the interests of the nation and the people's well-being" [3].
Malaysia also remains committed to reducing its reliance on foreign workers by increasing local workforce participation, strengthening the skilled workforce, and accelerating the transition towards automation [1, 2, 3].
Ahmad Zahid detailed these goals on his official Facebook page shortly after the Cabinet meeting, reinforcing the government's intent to implement practical and measured policies regarding foreign labor [1, 3].
The restructuring aims to create a foreign worker management system that better matches the evolving Malaysian economy’s demands while safeguarding job opportunities for Malaysians. The government is expected to release further implementation guidelines and timelines in the coming months.
