Datuk Dr Ngu Piew Seng
KUCHING (May 27): Sri Aman and Betong Divisions Federation of Chinese Associations president Datuk Dr Ngu Piew Seng has called on the Sarawak government to abolish the RM1,854 fee imposed under the Foreign Workers Transformation Approach (FWTA), saying Sarawak is the only state in Malaysia enforcing such a charge on employers.
While welcoming Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg’s recent statement that the fee structure is being reviewed, Ngu said the issue goes beyond restructuring and requires outright removal of the charge.
“Sarawak is the only state in Malaysia charging such a fee. No other state imposes a similar level, and this makes it highly unfair to employers here,” he said in a Facebook post.
The Simanggang Chinese Chamber of Commerce president noted that business groups, including the Associated Chinese Chambers of Commerce and Industry of Sarawak (ACCCIS), had raised the matter since early last year, including engagements with Deputy Minister in the Premier’s Department (Labour, Immigration and Project Monitoring) Datuk Gerawat Gala, but said there had been little tangible follow-up until recently.
Ngu also questioned the structure of the FWTA system, alleging that the RM1,854 fee does not go into government coffers but benefits private parties.
“This money is hard-earned by employers and taxpayers. Why should middlemen profit from it?” he said, describing the arrangement as ‘profiteering in disguise’.
He further questioned why Sarawak employers are subject to additional charges not imposed in states such as Johor, Selangor, Penang or Sabah, where foreign worker administration is handled directly by government departments with standard fees.
Ngu said several industry groups, including the Sarawak Timber Association and the Sibu Shipyard Association, had previously expressed concerns that the fee would increase operational costs for businesses.
He also thanked Pending assemblywoman Violet Yong for raising the issue in the Sarawak Legislative Assembly, saying it helped bring the matter into public discussion.
While acknowledging the Premier’s view that structural reform is more important than fee reduction alone, Ngu maintained that the RM1,854 charge should first be removed.
“If adjustments are made but the money still goes to private parties, then it means nothing to employers,” he said.
He added that if the fee cannot be abolished immediately, the government should disclose the structure, fund flow and contractual arrangements behind the system, and explain why Sarawak imposes the charge.
Ngu also proposed that the system be replaced with reasonable government-collected administrative fees, with revenue channelled into the state treasury to improve foreign worker management and labour protection.
He urged the state government to move beyond discussions and take concrete actions to reduce the burden on the private sector and safeguard Sarawak’s business competitiveness.
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