Malaysia new foreign workers’ levy rate system wef from 1st February 2016

SIBU: The Government’s decision to restructure the levy rate system for foreign workers is expected to bring in an extra income of RM2.5bil to the country, said Datuk Seri Dr Ahmad Zahid Hamidi (pic).

The Deputy Prime Minister said the new rate, which would come into effect from Monday, applied to two categories.

He said this at a media conference after visiting the University College of Technology Sarawak (UCTS), the only university in central Sarawak after ending his two-day working visit here Sunday.

Previously, he said foreign workers were charged different rates based on the sectors where they worked such as manufacturing, construction, service, plantation and agriculture.

“Now there are only two categories. The first is for those in the manufacturing, construction and service sector. Here, each worker will be charged the new rate of RM2,500.

“For those in plantation and agriculture, which come under the second category, the rate is RM1,500 per worker,” Ahmad Zahid said.

He said domestic workers were, however, exempted.

According to statistics, he said there were now some 2.135 million registered foreign workers in the country.

“Our Prime Minister Datuk Seri Najib Tun Razak had in his Budget 2016 revision speech touched on the restructuring.

“This is in accordance with the development in the country’s economic scenario, and at the international level,” he said.

He said the Government needed to come up with the new rates as foreign workers were also enjoying various benefits such as subsidised prices for food and other necessities which were only meant for Malaysians.

“They are enjoying our good infrastructures too, but we are also acknowledging the vital roles they play in our nation-building and to our economy,” Ahmad Zahid added.

News source: The Star

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