KUALA LUMPUR - The Sarawak Government has defended the implementation of the Foreign Workers Transformation Approach (FWTA) Project, saying the initiative ensures industries relying on foreign labour bear the cost of the regulatory ecosystem instead of taxpayers.

Minister in the Premier’s Department Dato Sri John Sikie Tayai said the FWTA project is implemented through a public-private partnership (PPP) model, as reported by Dayak Daily.

He said all capital development and operational costs under the project ecosystem are fully financed by the private sector.

Sikie said the approach allows the state government to combine regulatory oversight with private sector innovation without placing additional strain on public finances.

“By pairing government oversight with private sector innovation, the Sarawak Government aims to deliver world-class services without straining public finances,” he said during his ministerial winding-up speech at the Sarawak Legislative Assembly on May 17.

He added that the model also supports specialised knowledge transfer and strengthens the resilience and security of public services.

According to Sikie, the initiative plays an important role in advancing Sarawak’s digital transformation agenda.

He said revenue generated through the FWTA platform is reinvested into infrastructure and digital systems required for foreign worker management.

These include Immigration and Labour Integrated Centres, e-Know Your Customer systems and cybersecurity infrastructure.

Sikie stressed that the framework operates on a cost-neutral basis without imposing financial burdens on taxpayers.

The minister also addressed concerns surrounding the RM1,854 fee charged under the system, which amounts to RM2,002.32 inclusive of Sales and Service Tax (SST).

He said the fee structure was based on a “user-pay” model and had undergone due diligence by relevant state agencies before receiving approval from the state authorities.

According to Sikie, the charges are comparable to fees imposed by similar agencies and jurisdictions internationally.

He cited the Malaysia Digital Economy Corporation (MDEC), which imposes a non-refundable processing fee of RM2,160 for Malaysia Digital Expansion applications.

He also pointed to the United Arab Emirates, where work permit and visa processing fees typically range between AED3,000 and AED8,000, equivalent to approximately RM3,200 to RM8,500 per employee.

“In comparison, the fees imposed under the FWTA framework are relatively modest and lower than those charged by other comparable entities and jurisdictions,” he said.

Sikie emphasised that the fee is not limited to document processing for items such as Approval in Principle applications, labour licences or Visa with Reference approvals.

Instead, he said the charges cover end-to-end operational costs involving the development and maintenance of statewide infrastructure and integrated digital systems.

The system is also designed to provide transparent and streamlined workflows across multiple federal and state agencies.

Sikie said the platform additionally enables the Sarawak Government to access real-time workforce supply and demand data for strategic policymaking.

He also clarified the role of BILLLZ Sdn Bhd, which serves as one of several independent payment gateway providers under the FWTA project.

According to him, the company provides secure payment services supported by strong cybersecurity measures to safeguard data and maintain clear audit trails.

“This is a significant improvement over manual or so-called ‘free’ systems that often lack accountability,” he said.

Sikie further stated that all third-party companies appointed under the FWTA initiative, including FWTA Sdn Bhd, were selected in accordance with established procurement procedures.

He added that the companies remain subject to audits and oversight by the relevant government authorities.

“I trust this explanation will provide necessary clarification on the FWTA Project. These measures reflect the Sarawak Government’s steadfast commitment to transparency, accountability, and good governance,” he said.

The minister was responding to concerns raised by Pending assemblywoman Violet Yong during debates on the Motion of Thanks for the Yang di-Pertua Negeri’s address at the Sarawak Legislative Assembly last week.

Yong had sought clarification regarding FWTA, the fees imposed under the system and the involvement of FWTA Sdn Bhd.

Sikie reiterated that all processes linked to fee structures, system implementation and third-party appointments are conducted according to established rules and procedures with continuous regulatory scrutiny.