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Malaysian Manufacturers Tell Putrajaya To Reconsider Levy Rate Increase

The Federation of Malaysian Manufacturers (FMM) today strongly objected the sudden decision to increase foreign workers levy rate in manufacturing sector, saying that Putrajaya has failed to consider the significant impact on business sustainability and socio-economic consequences.

Describing it as unacceptable, the federation urged the government to reconsider the decision and implement it in phases when the economic situation improved.

“FMM strongly objects to the sudden and steep increase in foreign workers levy rate from RM1,250 to RM2,500 per worker per year.”

“The government should call in industry stakeholders to discuss this decision and work together on a more acceptable schedule of increase as well as timing. In the meantime, the levy rate increase should be withdrawn,” it said in a statement today.

Yesterday, Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi said that the decision to restructure the levy rate system for foreign workers into two categories was expected to bring an extra income of RM2.5 billion to the country.

Manufacturing, construction and service sector would fall under the first category, where each worker would be charged the new rate of RM2,500 while plantation and agriculture which came under the second category would be charged RM 1,500 per worker, he said.

manufacturing foreign worker levyThe new rate comes into effect beginning today. Domestic workers were exempted.

FMM said employers had asked that levy rate should at least be maintained at the current rate until the country’s economic conditions were better.

“The doubling of levy rate is very hefty considering that manufacturers already have to contend with the current challenging economic conditions and the rising cost of doing business, namely, the new minimum wage level, higher energy costs, higher costs of raw materials inputs and lower sales revenue arising from the weakening of the ringgit,” FMM said, adding that the government had not taken into consideration employers’ plea and cooperation.

“Business sustainability is at stake. Jobs are also at stake, even for local workers when businesses find great difficulty in sustaining their operations.

“The government should look at business sustainability in totality, considering all relevant factors which would have an impact; and not in isolation of issue by issue.

“All issues put together become an insurmountable economic fire which could overwhelm and consume businesses, employees and suppliers throughout out the supply chain,” the association said.

FMM said changes should be pre-announced and gradual whether with respect to the quantum as well as timing of the increase to allow companies adequate time to adjust.

“Changes and especially hefty changes with significant impact on business costs, should not be made overnight.” – February 1 2016.

 

Source: Malaysia Insider

Photo source: Internet

 

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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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Expats Who Submit Forged Documents May Land Bosses In Jail

jail_employers_for_forged_expatriate_documentsPETALING JAYA: Employers of expatriates can be jailed or fined if the application for an employment pass is found to contain fake supporting documents, said the Immigration Department.

Immigration director-general Datuk Seri Mustafa Ibrahim (pic) said those employers found guilty of submitting forged documents can be jailed up to seven years or fined, or both.

“We will also not hesitate to blacklist the companies involved and their representatives.

“The companies cannot blame their consultants or agents because a director of the company making an application must be present to authorise the agents,” he said.

Eight cases have been detected where the expatriates allegedly used forged documents and other fraudulent material, he said.

Mustafa was speaking at a press conference at the My Expatriate Talent Service Centre (MYXpats Centre) here yesterday.

He said police reports have been lodged over these cases and investigations were underway.

forged_working_permitHe said the MYXpats Centre was opened on July 1 as a one-stop centre, jointly managed by the Immigration Department and Talent Corp Malaysia, for the issuing of employment passes and other related papers for expatriates in the country.

“The purpose was to make the process easier and faster but some companies have tried to take shortcuts by forging supporting documents,” he said.

The cases being investigated involved applications made bet­ween July and December, he said.

He said these were made by multinationals and local companies in the construction, manufacturing, mining, electronics and sports industries.

Mustafa said that some of the supporting documents that were submitted even had forged logos of government and industry regulatory bodies.

 

News Source: The Star

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