Malaysia Launches Groundbreaking Digital ID and Wage System to Transform Construction Industry

8 December 2025

KUALA LUMPUR: The Malaysian construction industry recently celebrated a historic milestone with the official launch of CIDB’s new Construction Personnel Registration Card.

This innovative, multifunctional digital identity and wage payment card aims to revolutionise workforce management, enhance regulatory compliance, and improve worker welfare across the sector.

The launch was officiated by Dato Sri Alexander Nanta Linggi, Malaysia’s Minister of Works, who described the initiative as “a significant leap forward for Malaysia’s construction industry.” He highlighted its role in boosting transparency, safety, and governance at construction sites nationwide through a unified digital platform that consolidates worker identity, site attendance, financial access, and wage management into a single national system.

Under the CIDB Act (Act 520), registration of construction personnel is mandatory. To date, CIDB has registered over 1.16 million workers, including 710,582 locals and 457,522 foreigners.

The new CIDB card goes beyond traditional identification tools by integrating worker identity verification, digital record storage within CIDB’s CIMS system, and E-wallet functionality. “This initiative means workers no longer have to depend solely on cash payments or physical documents. Their employment details, attendance, and wages can now be managed digitally and securely,” Alexander explained.

Workers will have access to a comprehensive digital ecosystem that includes E-wallet capabilities, enabling local and international money transfers, bill payments, mobile top-ups, and reward features. Additionally, the system provides a digital attendance tracking feature at construction sites. This allows workers to log in, scan a QR code, and have their attendance recorded instantly. Such features are especially vital for foreign workers who often encounter delays in wage payments or face difficulties sending money home. The integrated system simplifies daily transactions, making them faster, more secure, and more convenient.

A core component of the system is e-Wages, which guarantees workers receive salaries that are fair, timely, and fully traceable. Employers will upload payroll data via bulk IBG transfers from their payroll systems, and wages will be credited directly into workers’ virtual accounts, displayed in their E-wallets. “This cashless, accurate, and secure system guarantees proper wage recording and regulatory compliance,” said the Minister.

He emphasised that it reduces wage disputes, enhances legal adherence, and supports Malaysia’s Environmental, Social, and Governance (ESG) commitments.

CIDB, through its subsidiary CLAB, has piloted the e-Wages feature with five construction firms, involving 279 workers. The new system also introduces a digital attendance feature at construction sites, replacing manual logbooks and inconsistent records. Workers log in, scan a QR code, and their attendance is instantly recorded, helping to verify personnel on site, reduce the hiring of undocumented workers, strengthen enforcement and governance, and bolster Malaysia’s reputation for ethical labour practices. “In essence, this digital attendance system allows us to know exactly who is on site, where they are, and their entry and exit times,” the Alexander stressed.

In the long term, data collected through the new Construction Personnel Registration Card will be integrated into the upcoming Construction Productivity System (CPS). This system will provide insights into total working hours, workforce movement, productivity trends, Green Card compliance, and project performance. “This data will facilitate better planning, more accurate forecasting, and more informed decision-making by both government and industry,” he explained.

Alexander announced that Construction Labour Exchange Centre Berhad (CLAB), CIDB’s subsidiary, will play a key role in promoting voluntary adoption of the digital features associated with the new card. CLAB will also strengthen its position as a central hub for managing foreign construction labour, ensuring industry needs are met with competent, compliant, and safe workers over the next five years.

Highlighting the importance of this digital transformation, the Minister stated: “This is purpose-driven digitalisation. Technology is employed not just to improve efficiency but also to safeguard workers, elevate industry standards, and foster trust within the construction sector.”

He expressed gratitude to CIDB Malaysia for its leadership, and extended thanks to CLAB, Bayo Pay, and MBSB Bank for their support in providing the technological backbone for the E-wallet service. He called on all contractors, developers, and industry stakeholders to fully embrace and support this initiative, emphasising that digitalisation is the key to building a safer, more transparent, and more competitive Malaysian construction industry.