KUALA LUMPUR - The RM1,854 fee imposed on employers for hiring foreign workers in Sarawak is not merely a processing charge, said Minister in the Premier's Department Datuk Seri John Sikie Tayai.

He said that the fee is rather a cost recovery measure for a comprehensive ecosystem under the Foreign Workers Transformation Approach (FWTA), DayakDaily reported.

"It must be emphasised here that this fee covers the cost for preparing, providing and maintaining all the necessary infrastructure and infostructure throughout the State in order to deliver the services to employers in hiring foreign workers and again not merely the cost for processing fees associated in the issuance of Approval in Principle (AP), Labour License, Visa Dengan Rujukan (VDR), Medical Screening, and issuance of Non-Sarawakian Identity Card (NSIC)," he said.

Sikie responded to a query from Bukit Assek assemblyman Joseph Chieng Jin Ek during the Sarawak Legislative Assembly sitting, highlighting that digitalisation is only one segment of a much larger ecosystem designed to bring integrated services right to the doorstep of employers and foreign workers.

He noted that the FWTA project is implemented through a Public-Private Partnership (PPP) model, with all capital development fully financed by the private sector.

"The fees collected are used to enhance and upgrade the various components of the ecosystem, which require substantial initial investment such as the development of facilities (ILCs), the FWTA platform, and related services," he added.

Sikie explained that these investments aim to help employers reduce their operational costs in managing foreign worker recruitment.

"Therefore, the investment incurred must be recovered through a reasonable fee structure, charged to employers who hire foreign workers for their operations and projects in Sarawak," he said.

Based on a Cost and Benefit Analysis (CBA) verified by relevant state agencies, Sikie said the appropriate fee to recover the investment is RM1,854 per foreign worker hired.

During the debate on the Sarawak Budget 2026, Chieng voiced concerns over the financial burden posed by the new FWTA system, SANSOLS, particularly on sectors reliant on foreign labour such as plantations, manufacturing, and shipbuilding.

"Digitalisation should uplift business competitiveness, not become an added burden," he emphasised.

He welcomed the government’s move towards digitalisation to improve transparency and efficiency but pointed out that the new application fee of RM1,854, totalling RM2,002.30 after service tax — represents a significant increase compared to the previous system, which carried no system charges.

With all Non-Resident Employee (NRE) applications required to transition to SANSOLS starting 10 August 2025, Chieng urged the Ministry to review and reduce the fee structure and ensure that the new system genuinely accelerates approval, reduces waiting time, and improves user experience.

"I trust that the Ministry will consider these feedbacks for a more balanced and business-friendly implementation," he said.

The Sarawak government’s FWTA system officially came into effect on 15 January, and several proposed charges took effect with the implementation of FWTA.

The new charges include RM950 per person for the Approval in Principle, RM335 per person for the Labour Licence, and RM215 per person for the Visa with Reference.

A RM30 fee for each registration under the Sarawak Foreigners Health Information System (Safhis) is also imposed, which functions as a centralised platform for managing foreign workers’ medical records in line with Sarawak Health Department requirements.

This RM30 covers the registration process as well as the scheduling of appointments with panel doctors within the system.

Each worker will also be issued a Foreign Worker Identity Card priced at RM324 per person.

In total, the additional cost per worker amounts to RM1,854.

In January, Deputy Minister in the Premier’s Department (Labour, Immigration, and Project Monitoring) Datuk Gerawat Gala said the new system would significantly improve efficiency, with faster turnaround times for processing work permit applications and greater transparency, as enforcement agencies can instantly access and verify non-resident workers’ data online.

“FWTA will also centralise data for all non-resident workers, which is crucial for manpower planning in Sarawak,” he told The Borneo Post.