The Workmen's Compensation Act 1952
was amended in August 1996.
Under Section 26(2) of the
Amended Act, it is mandatory for every employer to insure all the foreign
workers employed by him under an approved insurance scheme in respect
of any liability he may incur under the Workmen's Compensation Act 1952.
Any employer who fails to insure the
foreign workers under the approved insurance scheme shall be guilty of an
offence and shall be liable, on conviction, to a fine not exceeding RM20,000 or
to imprisonment for a term not exceeding 2 years or both.