MEF seeks Najib’s intervention over foreign worker levy issue

KUALA LUMPUR: The Malaysian Employers Federation ( MEF) has urged Prime Minister Datuk Seri Najib Tun Razak to intervene in the foreign worker levy issue, which requires employers to pay a new quantum effective Jan 1.

Its executive director, Datuk Shamsuddin Bardan, said nearly all industries were unhappy over the decision forcing employers to pay the annual levy for foreign workers as the government did not discuss it with them before enforcing it.

“This policy is a surprise and we do not see it benefiting the economy. It is not businessfriendly and the announcement was made within a day, without any engagement with industry players and (a) grace period (given).

“We do not agree to this policy because the cost will not only impact us, the employers, but the consumers as well,” he told reporters after a joint meeting with 159 industry players here yesterday.

He said the industries’ need for foreign workers was crucial as it was a human resource need which could not be filled by the locals.

“The industries which usually employ foreign workers are the ones that our local people avoid.

“That is why employers have no choice but to resort to foreign workers to meet orders by clients,” Shamsuddin said, adding that the documents and letters on the issue would be submitted to the prime minister later yesterday.

Meanwhile, the SME Association of Malaysia national president, Datuk Michael Kang Hua Keong, said the association opposed the decision because employers would face more risk of losing legal foreign workers.

“As this will incur additional cost to businesses to employ the legal foreign workers, more illegal ones will start to come in.

“Thus, the aim to manage foreign workers better through the move taken will not achieve its objective,” said Kang.

He said the industry players wanted the prime minister to look into the matter urgently and maintain the previous system, where levies were paid by the foreign workers from deduction of their wages.

In a separate statement, the Malaysian Iron and Steel Industry Federation said while it appreciated the government’s effort to reduce the number of cases of workers fleeing, working illegally in other sectors and overstaying, the alternative adoption of labour- saving processes through automation systems were not feasible this time due to the uncertain market conditions and weak ringgit against the US dollar. — Bernama