FWTA ensures industries bear cost of foreign labour management instead of taxpayers

Sikie delivering his ministerial winding up speech at Sarawak Legislative Assembly on May 18, 2026.

By Lian Cheng

KUCHING, May 18: The FWTA (Foreign Workers Transformation Approach) Project ensures that the industries benefiting from foreign labour bear the ecosystem and regulatory oversight cost, rather than shifting the financial burden onto the general taxpayer.

In stating this, Minister in the Premier’s Department Dato Sri John Sikie Tayai (Native Laws and Customs) said FWTA is implemented through the public-private partnership (PPP) model, under which all capital development and operating cost for the project ecosystem is fully financed by the private sector.

Msaid by pairing government oversight with private sector innovation, the Sarawak Government aims to deliver world-class services without straining public finances.

“This model ensures specialised knowledge transfer, keeping our public services resilient and secure, thereby playing a pivotal role in advancing Sarawak’s digital transformation agenda.

“Additionally, the FWTA initiative demonstrates the strength of this model through its cost-neutral structure. Revenue generated

through the use of the platform is reinvested into critical infrastructure such as Immigration and Labour Integrated Centres, e-Know Your Customers assets, and cybersecurity systems, funding essential capital expenditure without burdening taxpayers,” said Sikie when delivering his ministerial winding up speech at Sarawak Legislative Assembly here today.

On the charged fee of RM1,854.00 (RM2,002.32 inclusive of SST) which is imposed based on “user-pay” model, Sikie said the fee had undergone due diligence by the relevant State agencies and approved by the State Authority.

“The payment structure is consistent with both national and international practices. For instance, Malaysia Digital Economy Corporation (MDEC) imposes a non-refundable processing fee of RM2,160 for each Malaysia Digital Expansion application.

“In the United Arab Emirates, application and processing fees for work permits and visas are payable a s part o f the issuance process, with total costs typically ranging from approximately AED 3,000 to AED 8,000 (equivalent to about 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,” said Sikie who is Tatau assemblyman (GPS-PRS).

He emphasised that the fee is not merely a processing fee for documents such as the Approval in Principle (AP) and Approval Letter, Labour License, or Visa with Reference (VDR). Rather, it covers the end-to-end processing costs, which include developing and maintaining the statewide infrastructure and infostructure required for service delivery; ensuring a transparent, streamlined, and seamless digital workflow across multiple State and Federal agencies and providing the State Government with critical real-time data on workforce supply and demand essential for strategic policy decisions.

BILLLZ Sdn Bhd which is one of several independent payment gateway providers utilised by the FWTA Project, delivers secure, well-maintained services with robust cybersecurity to protect Sarawakian data, while generating clear audit trails and strengthening transparency, Sikie added.

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

“All third parties appointed to assist in the implementation of the FWTA project, including FWTA Sdn Bhd were appointed strictly in accordance with established procurement procedures and remain subject to audit 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,” said Sikie in response to Pending assembly woman Violet Yong (PH-DAP) who had sought clarifications on FWTA and the fee its charges as well FWTA Sdn Bhd, a debt collecting company with similar name last week when debating Motion of Thanks on TYT’s Address at Sarawak Legislature.

Sikie emphasised that through clear procedures, structured oversight mechanisms, and continuous regulatory scrutiny, the State ensures that all processes, from fee imposition and system implementation to third-party appointments, are conducted in an open and responsible manner in compliance with established rules and procedures. —DayakDaily