‘Govt should reconsider foreign worker levy terms’ — FMM

PETALING JAYA (September 27): The government should reconsider its decision to maintain its original plan for employers to pay the full RM10,000 levy due for an extension of employment for skilled foreign workers, said the Federation of Malaysian Manufacturers. 

“It’s very difficult for employers to bear this cost. So we would like to propose to the government to consider extending the RM10,000 payment to three years, instead of one,” FMM president Datuk Soh Thian Lai said. 

Soh said if the amount is extended for a three-year period, this would allow employers to bear the cost better, as they would be able to retain their skilled foreign labour, as well as improve productivity, generating returns. 
 
“But if it’s maintained at RM10,000 a year, then employers may not be able to retain the skilled foreign labour and be forced to seek new recruits. This would cause disruption to the system. So we are stuck in a dilemma. 

“So we urge the government to sit down with the trade associations and everyone involved in the industry to come up with an amicable solution for the sake of the industry and country,” he told reporters on the sidelines of the FMM Industry 4.0 conference 2018. 

On Monday, Finance Minister Lim Guan Eng announced foreign workers who have worked in the country for more than 10 years would have to pay 80% of the levy or RM8,000, with employers bearing the remaining 20% or RM2,000. 

However on Tuesday, the government had reversed its decision following complaints, reverting to the initial plan for the payment per worker to be fully borne by employers. 

Otherwise, they will have to send their foreign workers back home and re-employ them as new workers, for which they only pay a levy of RM1,850 per year. 

The levy only applies to foreign workers in formal sectors such as manufacturing, construction, plantation, services, agriculture, mining and quarries. — theedgemarkets.com

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