Why Use a Licensed Agency in Sarawak?

Artikel ini juga tersedia dalam Bahasa Melayu: Versi Bahasa Melayu / This article is also available in Malay.

In Malaysia, employment agencies that recruit foreign workers must hold a valid licence issued by the relevant authorities. For agencies operating in Sarawak, this means being licensed by Jabatan Tenaga Kerja Sarawak (JTKSWK) — the licence Citra Excel holds and works under as a recruitment agency in Sarawak.

Yet not every agency operating in the market is properly licensed. Understanding the difference — and the risks of using an unlicensed operator — can save employers significant trouble. For a self-audit checklist on the warning signs, see our compliance red-flag guide.

What Makes an Agency "Licensed"?

Under the Private Employment Agencies Act 1981 (amended 2017), a licensed employment agency has been approved by the government to carry out recruitment and placement activities. In Sarawak, licences are issued by JTKSWK — which is also why a peninsular licence does not let anyone file here. We set out what a licensed work permit agent in Sarawak can and cannot legally do on your behalf. Being licensed means:

• The agency is registered and recognised by the relevant authorities
• There is a government body you can turn to if issues arise
• The agency can be held accountable through official channels
• Proper record-keeping is expected as part of the licensing conditions

Risks of Using an Unlicensed Agency

For Employers

The Private Employment Agencies Act 1981 reserves its heaviest penalties — a fine of up to RM200,000 and imprisonment of up to 3 years — for the person operating the unlicensed agency. The employer who engages one is not the target of that provision, but the fallout still lands on the employer:

• Invalid work permits — workers placed through unlicensed channels may not have proper documentation, exposing your business to Immigration Act penalties
• No recourse — if something goes wrong, there is no regulatory body to mediate or hold the agency accountable

Under Section 55B of the Immigration Act 1959/63, employers found with undocumented workers face fines of RM10,000 to RM50,000 per worker, and imprisonment of up to 12 months. Where more than five undocumented workers are involved, the penalty escalates to imprisonment of 6 months to 5 years, plus whipping of up to 6 strokes.

For Workers

Workers placed through unlicensed agencies are especially vulnerable:

• Risk of deportation and blacklisting from future entry
• Exposure to exploitation — passport confiscation, wage theft, unsafe conditions
• No legal protection or proper employment contract
• Difficulty accessing healthcare, insurance, or social security

How to Verify an Agency's Licence

Before engaging any employment agency, employers should:

1. Ask for the licence number — a legitimate agency will provide this readily
2. Check with JTKSWK — JTKSWK publishes a list of licensed private employment agencies on their official website. You can also contact them directly to confirm a licence is active and valid
3. Look for the licence displayed — licensed agencies typically display their credentials at their office and on their website
4. Verify SSM registration — the agency should be a registered company with Suruhanjaya Syarikat Malaysia

What a Licensed Agency Provides

Working with a licensed agency means:

• Accountability — the agency is answerable to government regulators
• Recourse — if something goes wrong, there is an official body you can escalate to
• Proper contracts — workers receive legitimate employment agreements
• Post-placement support — ongoing assistance after workers arrive
• One accountable partner — verifiable and traceable if anything goes wrong
• Labour Licence compliance — a licensed agency helps ensure your company meets the Labour Licence requirement (introduced May 2025 under the Sarawak Labour Ordinance) for Employment Pass applications
• Local Understudy coordination — agencies can advise on appointing and registering a local understudy within the required 6-month window after EP approval

Protect Your Business

Hiring foreign workers involves navigating a complex regulatory environment. A licensed agency handles this on your behalf — properly, legally, and with full accountability.

Taking shortcuts with unlicensed operators may seem easier or cheaper in the short term, but the legal and financial risks far outweigh any perceived savings.

Frequently Asked Questions

References

• Private Employment Agencies Act 1981 (Act 246) — Agency licensing requirements
• JTKSWK — Licensed Private Employment Agencies — Published list of licensed agencies in Sarawak
• Malaysian Immigration Department — Frequently Committed Offences — Section 55B penalties
• Immigration Act 1959/63 (Act 155) — Section 55B (employing undocumented workers)
• Labour Ordinance (Sarawak Cap. 76) — Employment Licence requirements

Sources

1. GENESIS — HAVEN FAQ: Confirms that employment agencies can register in ALIANCE for domestic helper recruitment. genesis.sarawak.gov.my/faq/?module=HAVEN