KUALA LUMPUR - The Sarawak Government does not receive or retain any portion of the RM1,854 fee charged under the Foreign Workers Transformation Approach (FWTA) system, Deputy Minister in the Premier’s Department Datuk Gerawat Gala said.
Gerawat, who oversees Labour, Immigration and Project Monitoring, said the full amount is paid to the appointed service provider managing the initiative.
He said revenue generated through the platform is reinvested into infrastructure and digital systems linked to the FWTA project, as reported by The Borneo Post.
These include Immigration and Labour Integrated Centres, a centralised digital platform, cybersecurity improvements, human capital development and other capital expenditure requirements.
“The FWTA project is implemented through a Public-Private Partnership (PPP) model, under which all capital development and operating costs for the project ecosystem are fully financed by the private sector.
“The fee of RM1,854, as approved by the government, is fully utilised for the operation, maintenance, and enhancement of the FWTA initiative in accordance with state government directives,” he said in a statement..
Gerawat was responding to concerns raised by Pending assemblywoman Violet Yong regarding transparency surrounding the FWTA system and the fees imposed on employers.
According to Gerawat, 36,672 Approvals in Principle (APs) were approved through the FWTA system in 2025.
Of that total, 35,336 applications proceeded to payment.
He explained that another 69,570 AP applications had been processed manually before the FWTA system was introduced and were therefore not subjected to the RM1,854 fee.
Gerawat also clarified the role of FWTA Sdn Bhd within the project structure.
He said the company serves as a subcontractor appointed by the official service provider and is authorised under contractual terms with the state government to receive payments on behalf of the provider.
According to him, the appointment process complied with established procurement procedures and remains subject to audits and oversight by relevant authorities.
The deputy minister cautioned against politicising administrative initiatives introduced to support the broader interests of Sarawak and its people.
He said the FWTA initiative was developed to protect employment opportunities for Sarawakians while strengthening labour governance and supporting economic growth through a regulated workforce ecosystem.
“While the state government remains committed to transparency, any disclosure of specific contractual or commercial arrangements is subject to legal, regulatory, and confidentiality obligations to protect sensitive information, ensure compliance with the law, and maintain the integrity of procurement and administrative processes,” he said.
Gerawat added that the state government would continue engaging industry stakeholders to ensure implementation of the FWTA system remains practical and does not place unnecessary burdens on employers.
He said the government also remains committed to ensuring Sarawakians continue to receive priority access to employment opportunities.
“While the state government welcomes constructive scrutiny, it firmly rejects any insinuations of impropriety, lack of accountability, or absence of transparency,” he said.
Gerawat further stressed that discussions involving governance and public administration should remain factual and responsible.
He warned that baseless allegations could undermine public confidence in institutions serving the people.
Earlier this week, Violet Yong questioned the financial transparency of the FWTA initiative during a press conference at the Sarawak Legislative Assembly complex.
She claimed employers were facing heavy financial burdens because of the charges imposed under the system.
According to Yong, employers are required to pay RM1,854 for each foreign worker application processed through FWTA.
“The amount collected annually could reach at least RM200 million. Out of the RM1,854 collected, how much goes to the state government?
“How much goes to the company? This has not been answered,” she said.