Abstract
This paper conceptualizes the digitalization of foreign workers’ management as a gradual move by the state to phase out intermediaries and to reduce undocumented migration in Malaysia. The privatization of digital migration management to information technology (IT) firms is necessary in line with the centralization of all immigration functions. However, privatizing digital migration management has subject the employers and foreign workers to new non-state actors (IT firms and immigration service providers) while gradually eliminating the existing non-state actors (private agencies). The main theoretical question of the privatization of migration management concerns the role of immigration service providers as a result of digitalization. Using Malaysia as its case study, this paper highlights the need to re-conceptualize the role of service providers as “paper shifters” in providing front-line services, collecting agent services, and post office services and thus facilitating the online platform’s operations. This paper concludes that privatizing foreign worker management has not achieved the objectives of digitalization in reducing undocumented migration, eliminating intermediaries, improving efficiency, and reducing recruitment cost. The state’s privatization framework based on the employer-pay-model has resulted in the commercialization and monopolization of the foreign worker industry. In order to achieve the benefits of digitalization, the process should be done by the government without any form of privatization. The analysis draws upon official documents, parliamentary debates, statements by trade associations and civil societies, newspaper articles, and secondary literature. Based on the media discourse analysis of online news media and document analysis of official publications, this thought piece article explores immigration service providers’ role in Malaysia’s migration management.
Similar content being viewed by others
References
Abella, M. & Martin, P. (2016). Guide on Measuring Migration Policy Impacts in ASEAN. Bangkok: ILO Regional Office for Asia and the Pacific. https://www.ilo.org/wcmsp5/groups/public/%2D%2D-asia/%2D%2D-ro-bangkok/%2D%2D-sro-bangkok/documents/publication/wcms_461880.pdf
ACCCIM (Associated Chinese Chambers of Commerce and Industry of Malaysia). (2015a). Joint Statement on Foreign Workers Issues, 21 May 2015. https://www.acccim.org.my/wp-content/uploads/2019/05/ACCCIM-Bulletin-96.pdf
ACCCIM (Associated Chinese Chambers of Commerce and Industry of Malaysia). (2015b) Press Statement: Follow up on the New Mandatory Online Renewal and the Imposition of Online Service Charge on Foreign Workers’ Work Permit by MyEG, and Bestinet’s Foreign Workers Centralised Management System Issues, 25 February 2015. ACCCIM Bulletin Issue No. 94, March 2015 https://www.acccim.org.my/wpcontent/uploads/2019/05/ACCCIM-Bulletin-94.pdf
Anwar, K. (2016). MyEG fined RM2.27m for abusing dominant provision in foreign worker permit renewal market. Edge Markets, 24 June. http://www.theedgemarkets.com/article/myeg-fined-rm227m-abusing-dominant-provision-foreign-worker-permit-renewal-market
Aruna, P. (2015). Employment agencies threaten to stop sending Indonesian workers. Star Online, (28 January) https://www.thestar.com.my/news/nation/2015/01/28/anger-over-steep-visa-fees-employment-agencies-threaten-to-stop-sending-indonesian-workers/#eKf8zE6TFxSPhblc.99.
Augustin, R. (2018). Reveal details of other foreign worker recruitment service providers. govt told. Free Malaysia Today, (2 August) https://www.freemalaysiatoday.com/category/nation/2018/08/02/reveal-details-of-other-foreign-worker-recruitment-service-providers-govt-told/.
Aziz, A. (2017). MyCC sheds light on MyEG’s abuse of market position. Edge Markets, (29 December). http://www.theedgemarkets.com/article/mycc-sheds-light-myegs-abuse-market-position.
Azizi, N. A. (2018). Maid Online System: First batch of employers to welcome new maids this week. New Straits Times, 25 January. https://www.nst.com.my/news/nation/2018/01/328742/maid-online-system-first-batch-employers-welcome-new-maids-week
Blemin, C. (2015). MyEG says extra RM38 fees due to expanded scope of responsibilities. Edge Market, 9 January. http://www.theedgemarkets.com/article/myeg-says-extra-rm38-fees-due-expanded-scope-responsibilities
Bloom, T. (2015). The business of migration control: Delegating migration control functions to private actors. Global Policy, 6(2), 151–157.
Bowen, G. A. (2009). Document analysis as a qualitative research method. Qualitative research journal, 9(2), 27–40.
Broeders, D., & Hampshire, J. (2013). Dreaming of seamless borders: ICTs and the pre-emptive governance of mobility in Europe. Journal of Ethnic and Migration Studies, 39(8), 1201–1218.
Ceyhan, A. (2008). Technologization of security: Management of uncertainty and risk in the age of biometrics. Surveillance & Society, 5(2), 102–123.
Chari, R. S., & Cavatorta, F. (2002). Economic actors’ political activity in ‘overlap issues’: Privatisation and EU State Aid Control. West European Politics, 25(4), 119–142.
Chin, C. B. (2008). Diversification’and ‘privatisation’: Securing insecurities in the receiving country of Malaysia. The Asia Pacific Journal of Anthropology, 9(4), 285–303.
Civil Society Organisations. (2018). Immigration Raids Make Criminals out of Victims, 4 July. MalaysiaKini. https://www.malaysiakini.com/letters/432752
Daily Express. (2016). Call not to allow online hiring, 15 September. http://www.dailyexpress.com.my/news.cfm?NewsID=112830
Edge Markets. (2015). Putrajaya abolishes RM35 fee for foreign workers’ permits renewal, 24 April. http://www.theedgemarkets.com/article/putrajaya-abolishes-rm35-fee-foreign-workers%E2%80%99-permits-renewal
Federation of Malaysia. (2011). Parliamentary Debates (Hansard): House of Representatives, 11 July. http://www.parlimen.gov.my/files/hind.ex/pdf/DN-11072011.pdf
Federation of Malaysia. (2012). Parliamentary Debates (Hansard): House of Lords, 2 May. http://www.parlimen.gov.my/files/hindex/pdf/DN-02052012.pdf
Federation of Malaysia. (2015a) Parliamentary Debates (Hansard): House of Representatives, 17 March. http://www.parlimen.gov.my/files/hindex/pdf/DR-17032015.pdf
Federation of Malaysia. (2015b). Parliamentary Debates (Hansard): House of Representatives, 24 March. http://www.parlimen.gov.my/files/hindex/pdf/DR-24032015.pdf
Federation of Malaysia. (2015c). Parliamentary Debates (Hansard): House of Representatives, 8 April. http://www.parlimen.gov.my/files/hindex/pdf/DR-08042015.pdf
Federation of Malaysia. (2015d). Parliamentary Debates (Hansard): House of Representatives, 27 May. http://www.parlimen.gov.my/files/hindex/pdf/DR-27052015.pdf
Federation of Malaysia. (2015e). Parliamentary Debates (Hansard): House of Representatives, 11 June. http://www.parlimen.gov.my/files/hindex/pdf/DR-11062015.pdf
Federation of Malaysia. (2018). Parliamentary Debates (Hansard): House of Representatives, 6 December. http://www.parlimen.gov.my/files/hindex/pdf/DR-06122018.pdf
Fernandez, I (2014) In Malaysia, the scandal of outsourcing companies is at the heart of forced labour. Human Resources Without Borders. http://www.rhsansfrontieres.org/en/press/our-press-opinion/329-article-malaysia-forced-labour
Flynn, M. (2017). Kidnapped, trafficked, detained? The implications of non-state actor involvement in immigration detention. Journal on Migration and Human Security, 5(3), 593–613.
Gammeltoft-Hansen, T. (2013). The rise of the private border guard: Accountability and responsibility in the migration control industry. In T. Gammeltoft-Hansen & N. Nyberg Sørensen (Eds.), The migration industry and the commercialization of international migration (pp. 128–151). London: Routledge.
Garcés-Mascareñas, B. (2012). Labour Migration in Malaysia and Spain: Markets, Citizenship and Rights. Amsterdam University Press.
Goh, T. E. (2015). Facing backlash. MyEG defends deal with Malaysian govt. Digital News Asia, (19 January) https://www.digitalnewsasia.com/digital-economy/facing-backlash-myeg-defends-deal-with-malaysian-govt.
Gordon, C. (2016). Government may not implement FWCMS. MYeg – PAPPAS. New Sabah Times, (13 September) http://www.newsabahtimes.com.my/nstweb/fullstory/9472.
Guiraudon, V., & Lahav, G. (2000). A reappraisal of the state sovereignty debate: The case of migration control. Comparative political studies, 33(2), 163–195.
Habibu, S. (2015). Handle foreign labour permits. Star Online, (1 February) https://www.thestar.com.my/news/nation/2015/02/01/handle-foreign-labour-permits-dont-outsource-processing-online-major-players-urge-immigration-dept/.
Hanapiah, N. A. (2018). Putrajaya to terminate services of firms handling foreign workers.Free Malaysia Today, 24 October. https://www.freemalaysiatoday.com/category/nation/2018/10/24/putrajaya-to-terminate-services-of-firms-handling-foreign-workers/
Hedman, E. L. E. (2008). Refuge, governmentality and citizenship: Capturing ‘illegal migrants’ in Malaysia and Thailand. Government and Opposition, 43(2), 358–383.
Heyman, J., Fischer, N., & Loucky, J. (2014). Immigrants and immigration. In M. Parker, G. Cheney, V. Fournier, & C. Land (Eds.), The Routledge Companion to Alternative Organization (pp. 135–150). London: Routledge.
Ho, K.Y. (2019). Don’t privatise online system for foreign workers, says NGO. Free Malaysia Today, 24 January. https://www.freemalaysiatoday.com/category/nation/2019/01/24/dont-privatise-online-system-for-foreign-workers-says-ngo/
Ibrahim, D. (2015). Outsourcing foreign workers’ permits to MyEG threatens national security, says PKR. Edge Markets, 13 January. http://www.theedgemarkets.com/article/outsourcing-foreign-workers%E2%80%99-permits-myeg-threatens-national-security%E2%80%8E-says-pkr
Jones. (2000). Making Money off Migrants: The Indonesian Exodus to Malaysia. Hong Kong: Asia 2000 Ltd.
Kassim, A, & Mat Zin, R. (2011). Policy on irregular migrants in Malaysia: An analysis of its implementation and effectiveness. PIDS Discussion Paper Series. (No. 2011-34).
Kaur, A. (2014). Managing labour migration in Malaysia: Guest worker programs and the regularisation of irregular labour migrants as a policy instrument. Asian Studies Review, 38(3), 345–366.
Lahav, G. (2003). Migration and security: The role of non-state actors and civil liberties in liberal democracies. HUWU paper. https://www.un.org/en/development/desa/population/events/pdf/2/ITT_COOR2_CH16_Lahav.pdf
Lehtonen, P., & Aalto, P. (2017). Smart and secure borders through automated border control systems in the EU? The views of political stakeholders in the Member States. European Security, 26(2), 207–225.
Lethbridge, J (2017). Privatisation of migration and refugee services and other forms of state disengagement. London: A report commissioned by Public Services International (PSI) and the European Federation of Public Service Unions (EPSU). https://gala.gre.ac.uk/id/eprint/20031/7/20031%20LETHBRIDGE_Privatisation_of%20Migration_&_Refugee_Services_2018.pdf
Looi, S. C. (2015). Why hire MyEG to renew foreign workers’ permits, asks DAP. Edge Markets, 20 January. http://www.theedgemarkets.com/node/180189
López-Sala, A., & Godenau, D. (2016). Non-state actors and migration control in Spain: A migration perspective. The futures we want: global sociology and the struggles for a better world. 3rd ISA Forum of Sociology, July 10-14, Vienna, Austria. https://digital.csic.es/bitstream/10261/136847/1/Paper%20Viena.pdf
Low, C. C. (2020). De-commercialization of the labor migration industry in Malaysia. Southeast Asian Studies, 9(1), 27–65.
Low, C. C., & Mokhtar, K. S. (2017). Deportation Turn in Malaysia: Expansion, discourse and practice. Journal of Population and Social Studies, 25(2), 147–166.
Malay Mail Online. (2015). Purajaya to pay millions to support MyEG foreign worker permit renewal, group claims, 1 May . https://www.malaymail.com/news/malaysia/2015/05/01/putrajaya-to-pay-millions-to-support-myeg-foreign-worker-permit-renewal-gro/888193
MalaysiaKini. (2016). MP questions billions in contracts quietly awarded by Immigration, 29 July. https://www.malaysiakini.com/news/350380
Malaysian Chinese Association. (2015). Business groups voice displeasure over new systems and fee hikes, 29 January. http://www.mca.org.my/2/Content/SinglePage?_param1=13-122018-57973-12-201813&_param2=TS
Martin, L. (2017). Discretion, contracting, and commodication: privatisation of US immigration detention as a technology of government. In D. Conlon & N. Hiemstra (Eds.), Intimate economies of immigration detention: Critical perspectives (pp. 32–50). Routledge.
Menz, G. (2011). Neo-liberalism, privatization and the outsourcing of migration management: a five-country comparison. Competition & Change, 15(2), 116–135.
Migrant Worker’s Right to Redress Coalition. (2019). Flawed set-up for workers, 7 August. Star Online. https://www.thestar.com.my/opinion/letters/2019/08/07/flawed-set-up-for-workers
Mitsilegas, V. (2012). Immigration Control in an Era of Globalization: Deflecting Foreigners, Weakening Citizens, and Strengthening the State. Indiana Journal of Global Legal Studies, 19(1), 3–60.
Moh, J. (2017). Online Registration of Foreign Workers Good for Employers, Says FMM. New Straits Times, 20 April. https://www.nst.com.my/news/nation/2017/04/232248/online-registration-foreignworkers-good-employers-says-fmm.
Mohsen, A. S. (2017). Employers must submit foreign workers application online from April 1. Sun Daily, (6 April) http://www.thesundaily.my/news/2218759.
New Straits Times.(2018a). Nepal Ready to Negotiate MoU on Labour Cooperation with Malaysia. 2 August. https://www.nst.com.my/news/nation/2018/08/397163/nepal-ready-negotiate-mou-labour-cooperation-malaysia.
New Straits Times. (2018b). Our borders are not for sale, 17 November. https://www.nst.com.my/opinion/leaders/2018/11/432069/our-borders-are-not-sale
New Straits Times. (2018c). Gov’t working on improved, standardised MOU on hiring foreign workers. 28 November. https://www.nst.com.my/news/nation/2018/11/435432/govt-working-improved-standardised-mou-hiring-foreign-workers
Ng, M. S. (2018). No 3rd parties in recruitment. The Malaysian Reserve, (30 October) https://themalaysianreserve.com/2018/10/30/no-3rd-parties-in-recruitment/.
Nga, K. M. (2015). Media Statement by Nga Kor Ming on 9 Jan 2015. Democratic Action Party, 9 January. https://dapmalaysia.org/statements/2015/01/09/19922/
Nik Anis, M. (2010). Detention depots to be jointly managed by Immigration and Prisons depts, and Rela. Star Online, 4 August. https://www.thestar.com.my/news/nation/2010/08/04/detention-depots-to-be-jointly-managed-by-immigration-and-prisons-depts-and-rela/#mrod42szibWSy9yw.99
Norman, H. (2015). MyEG appointment not good for business. Sun Daily, 13 January. https://www.thesundaily.my/archive/1293680-ARARCH290685Online Integrated Immigration
Ooi, T. C. (2017). Manufacturers perturbed by MyEG’s “costly” online hiring fees. New Straits Times, 3 March. https://www.nst.com.my/news/2017/03/217251/manufacturers-perturbed-myegs-costly-online-hiring-fees
Perumal, E. (2018a). Over 100,000 Bangladeshi workers paid RM20k each to syndicate involving ‘Datuk Seri’ fatcat to work in Malaysia. Star Online, 22 June. Read more at https://www.thestar.com.my/news/nation/2018/06/22/human-traffickers-made-rm2bil-syndicate-smuggled-in-over-100000-workers-from-bangladesh/#FrfkerOpzfqk2Fad.99
Perumal, E. (2018b). Foreign Workers: Nepal slams the door. unhappy with company monopoly. Star Online, (28 July) https://www.thestar.com.my/news/nation/2018/07/28/no-more-nepalese-workers-for-msia-embassy-discrepancies-in-recruitment-process-pushed-our-govt-to-st/#UVuMwuJkkHWK0EW9.99.
Poudal, U. (2018). Nepal, Malaysia ink labour supply MoU. Himalayan Times, (30 October). https://thehimalayantimes.com/nepal/nepal-malaysia-ink-labour-supply-mou/.
Raj, R. (2018). Bestinet has no monopoly over foreign workers’ recruitment. says company director. Malay Mail Online, (31 July) https://www.malaymail.com/news/malaysia/2018/07/31/bestinet-has-no-monopoly-over-foreign-workers-recruitment-says-company-dire/1657839.
Sánchez-Barrueco, M. L. (2018). Business as usual? Mapping outsourcing practices in Schengen visa processing. Journal of Ethnic and Migration Studies, 44(3), 382–400.
Shahar, F. (2017). Two online systems introduced to ease foreign workers recruitment. New Straits Times, 10 April. https://www.nst.com.my/news/nation/2017/04/229245/two-online-systemsintroduced-ease-foreign-workers-recruitment.
Sim, S. C. K. (2015). MyEg just a redundant “middle man”. The Rocket, (20 January) https://www.therocket.com.my/en/myeg-just-a-redundant-middle-man/.
Sim, S. C. K. (2016). After immigration sabotage exposé, now gov’t wants to spend more money. Malaysia Kini, 19 July. https://www.malaysiakini.com/news/349032
Sim, S. C. K. (2017a). Put an end to immigration and foreign worker problems. Malaysian Trades Union Congress, 8 February. http://www.mtuc.org.my/put-an-end-to-immigration-and-foreign-worker-problems/
Sim, S. C. K. (2017b). Bestinet. once suspended, now immigration contractor. Free Malaysia Today, (2 January) https://www.freemalaysiatoday.com/category/opinion/2017/01/02/bestinet-once-suspended-now-immigration-contractor/.
Sørensen, N. N. & Gammeltoft-Hansen, T. (2012). The Migration Industry and Future Directions for Migration. DIIS Policy Brief. Denmark: Danish Institute for International Studies.
Spykerman, N. (2015). MEF: MyEG’s access to personal data may lead to abuse. Star Online, (25 January) https://www.thestar.com.my/news/nation/2015/01/25/mef-myegs-access-to-personal-data-may-lead-to-abuse/#7S4imWXXHgZweAYV.99.
Star Online. (2007). Rela to manage detention depots. 23 November. https://www.thestar.com.my/news/nation/2007/11/23/rela-to-manage-detention-depots/#MyUHbCz7fx3cwPS7.99
Star Online. (2013). Move to reduce detention period of illegals, 29 August. https://www.thestar.com.my/news/nation/2013/08/29/move-to-reduce-detention-period-of-illegals/
Star Online. (2015a). Indonesia and Nepal threaten to stop sending workers, 29 January. https://www.thestar.com.my/news/nation/2015/01/29/indonesia-and-nepal-threaten-to-stop-sending-workers/#tkMRWZwhGXtx3YWf.99
Star Online. (2015b). Mixed reactions over new foreign workers system, 12 June. https://www.thestar.com.my/news/nation/2015/06/12/mixed-reactions-over-new-foreign-workers-system/#mwKkXD4AWu5KScqv.99
Star Online. (2018a). Recruitment System Halted as Firms Linked to Ring, 22 June. https://www.thestar.com.my/news/nation/2018/06/22/recruitment-system-halted-as-firms-linked-to-ring/ #sPEJ0cJ8ofY7m0up.99
Star Online. (2018b). Bestinet: We stop human trafficking, 25 June. https://www.thestar.com.my/news/nation/2018/06/25/bestinet-we-stop-human-trafficking-our-system-is-specifically-designed-for-the-purpose-and-it-is-eff/
Stenum, H. (2017). The Body-Border. Governing irregular migration through biometric technology. Spheres: Journal for Digital Cultures, 4, 1–16.
Sun Daily. (2015). Trade bodies up in arms over online renewal, 29 January. https://www.thesundaily.my/archive/1310328-YRARCH293308
Sun Daily. (2017). Employers Can Apply for Foreign Maid Permits Online Beginning Jan 1. 1 November. https://www.thesundaily.my/archive/employers-can-apply-foreign-maid-permits-online-beginningjan-1-LTARCH498693.
Tay, T. Y. (2015). A government outsourced. Malay Mail Online, 31 January. https://www.malaymail.com/news/what-you-think/2015/01/31/a-government-outsourced-tay-tian-yan/831333
Tenaganita. (2019a). Malaysia targets middlemen to end debt bondage of migrant workers, 28 February. http://tenaganita.net/news-and-press-releases/news/malaysia-targets-middlemen-to-end-debt-bondage-of-migrant-workers/
Tenaganita. (2019b). Send foreign workers home if you cannot protect them, Putrajaya told, 28 February. http://tenaganita.net/news-and-press-releases/news/send-foreign-workers-home-if-you-cannot-protect-them-putrajaya-told/
Trasciani, G., Mavin, R., Borrelli, L.M., & Alomar, A. (2019). A Forest with many trees’ – Mapping the migration industry and accountabilit(ies) in Europe. Migration WorkingGroup. FEPS Young Academics Network / Renner Institut. https://www.feps-europe.eu/attachments/publications/wgmigration.pdf
World Bank. (2013). Immigration in Malaysia: Assessment of its Economic Effects and a Review of the Policy and System. http://psu.um.edu.my/images/psu/doc/Recommended%20Reading/Immigration%20in%20Malaysia.pdf
World Bank. (2015). Malaysia Economic Monitor: Immigrant Labour. Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/753511468197095162/Malaysia-Economic-monitor-immigrant-labor
Yong, Y. (2015). FMM wants govt to defer MyEG online foreign worker permit renewal. Edge Markets, (21 January) http://www.theedgemarkets.com/article/fmm-wants-govt-defer-myeg-online-foreign-worker-permit-renewal.
Zachariah, E. (2015). Malaysian immigration suspends Bestinet’s biometric health checks and visa services. Malaysian Insider, 30 January. https://www.theedgemarkets.com/article/malaysian-immigration-suspends-bestinet%E2%80%99s-biometric-health-checks-and-visa-services
Zainal, H. (2015). MyEG: Personal data will be safe. Star Online, 28 January. https://www.thestar.com.my/news/nation/2015/01/28/myeg-personal-data
Zainal, F. (2019). Better Welfare for Foreign Workers. Star Online, 12 March. https://www.thestar.com.my/news/nation/2019/03/12/better-welfare-for-foreign-workers-employers-laud-abolishment-of-outsourcing-outfits-managing-forei.
Zolkepli, F. (2015a). New Immigration system will improve efficiency. Star Online, (23 June) https://www.thestar.com.my/news/nation/2015/06/23/agencies-laud-online-move-new-immigration-system-will-improve-efficiency/.
Zolkepli, F. (2015b). Bestinet willing to aid in FWCMS issues. Star Online, 8 February. https://www.thestar.com.my/news/nation/2015/02/08/bestinet-willing-to-aid-in-fwcms-issues-firm-ready-to-work-with-govt-in-addressing-concerns-over-sys/#KBtySK7p0kqwD7JQ.99
Acknowledgments
The author is grateful to the editorial board of the Journal of International Migration and Integration and all the anonymous reviewers for their invaluable insights and constructive critiques on the earlier version of the paper. Their comments are tremendously helpful in improving the theoretical concerns, methodological issues, research contributions, practical implications, and research findings. The discussion and organisation of the paper owe much to all the reviewers.
Funding
This research was made possible with the Bridging Grants (304.PJJAUH.6316524) provided by Universiti Sains Malaysia.
Author information
Authors and Affiliations
Corresponding author
Additional information
Publisher’s Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Rights and permissions
About this article
Cite this article
Low, C.C. Digitalization of Migration Management in Malaysia: Privatization and the Role of Immigration Service Providers. Int. Migration & Integration 22, 1599–1627 (2021). https://doi.org/10.1007/s12134-021-00809-1
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s12134-021-00809-1