Hiring Foreign Worker Is Cheaper In Malaysia

If you hire a undocumented migrant worker (PATI), then I may agree with you. You can be fined RM50,000 or imprisoned 5 years if arrested. For further information, click here. That’s why I wouldn’t encourage you to do so. Here are the legal ways if you need to hire foreign workers in Malaysia. 

  1. Getting approval from authority parties before you hire the migrant worker from source country. 
  2. Legalizing the undocumented migrant worker (PATI) when there is PATI legalization program. 
  3. Transferring the foreign worker from others company under transfer owner program.

Is hiring foreign worker cheaper in Malaysia? Let us compare the hiring cost between the Foreigner and Local. 

Monthly Cost
Foreign Worker
Local Woker
Min Wage
RM 1200
RM 1200
RM 156
RM 14.40
RM 20.15
Average Levy (Manufacturing)
RM 154.17
Average Immigration Fee (Indonesia)
RM 16.67
Average Insurance Premium
RM 16.68
Average Medical Test (Female)
RM 15.83
Average Hostel Allowance
RM 100
Average Recruitment Cost (2 years contract)
RM 166.67
RM 1684.42
RM 1376.15

Now, I believe you know the answer. Hiring a foreign worker is much costly and the figure as above is not including hidden cost, liked paying compound (WANG SITA) if your foreign worker has absconded and losing the the levy, etc. which you have paid in advance. 

 If you are shortage of manpower, giving better pay or extra incentives to the local may solve your problem when you are not allowed to hire foreign worker. Off-course, I know it’s not easy because local may not interest with the 3D (Dangerous, Dirty & Difficult) jobs. At least, you should give a try. Or, you can appoint a licensed employment agency in Malaysia to assist you if you were tiring to the local sustainability issue.

Click here to contact us if you need our assist. Our team is pleased to serve you in no time. 

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