Tag - foreign worker levy increase

PUTRAJAYA: The Home Ministry will meet with employers after Chinese New Year to listen to their grouses over the new levy for foreign workers.

Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi (pic) said he will call representatives from the Malaysian Employers Federation, manufacturers, guilds and associations to discuss the matter.

“We want to hear their point of view‎ but let us be reminded that this new move will contribute RM4bil to the country’s coffers,” he said after attending the Home Ministry’s monthly assembly Friday.

The new rates came into effect on Feb 1 and apply to two categories.‎

Previously, foreign workers were placed in six tiers and charged a levy based on the sectors where they work, such as manufacturing, construction, service, plantation and agriculture.

Now, there are only two categories – manufacturing, construction and service sectors with a levy of RM2,500 per worker; and plantation and agriculture sectors, where the levy is RM1,500.

News Source: The Star

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The Government is willing to look into the dissatisfaction of employers over the new levy rate for foreign workers, said Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.

Commenting on the strong response from the Federation of Malaysian Manufacturers and other associations on the sudden hike in the levy rate, Dr Ahmad Zahid said the Government will listen to their feedback.

“We will not hesitate to look into the issue even though the new rates are enforced effective from Feb 1,” he said here while on an official visit to the Chinese capital.

However, Dr Ahmad Zahid added that Malaysia cannot rely on foreign workers forever.

He said the country must be ready to keep its reliance on foreign workers to a minimum and use local human capital.

Dr Ahmad Zahid added that is the duty of employers and the Human Resources and Education ministries to produce semi-skilled and skilled local employees.

“Although certain jobs are considered to be difficult, dirty and dangerous, employers must take long-term measures to give priority to local workers in the long run,” said Dr Ahmad Zahid.

News source: The Star

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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