‘Reduce foreign worker levy for benefit of all’
KOTA KINABALU: Local employers and companies heavily dependent on foreign workers are urging the federal government to seriously consider lowering the levy for migrant workers so as not to badly affect their business operations and Sabah’s economy once the employment policy is fully enforced on Jan 1, 2018.
The affected parties said they understand the rationale behind the new policy, but also strongly believe reducing the levy is logical and appropriate to safeguard their interest and welfare.
“We hope the Federal Human Resources Ministry and our leaders concerned will seriously consider our request for the benefit of everybody,” they stressed.
Last Thursday, the Human ResourcesMinistry in astatement said starting Jan 1, employers nationwide are required to pay the levy for their foreign workers which also means that employers are not allowed to deduct the fees from their workers through salary deduction.
For Sabah and Sarawak, the levy for foreign workers in the manufacturing and construction sectors are RM1,010, service ( RM1,410), plantation ( RM590), agriculture ( RM410), and domestic maids ranging from RM410 to RM590.
Tourism- related business operator Roger Chong said the new policy as stipulated in the employers understanding document which must be signed by the employers before they are allowed to hire foreign workers, requiring foreign workers to be properly documented and pay their corresponding work permit fees is a laudable measure taken by the government for security and other obvious reasons.
“However, in view of the present financial and economic conditions in Sabah, it would only be proper for our leaders concerned to seriously consider reducing the present employment levy rates so as not to put employers in a difficult financial situation,” he said.
Roger also said there is also a vital need for the local authorities to ensure all registered recruitment employment agencies looking after the documentation of foreign workers do not charge service fees exorbitantly.
“I have received complaints that these agencies are exorbitantly charging clients for the services they are offering ... this practice should be stopped immediately,” Roger who is also chairman of Parti Anak Negeri P-173 Putatan Parliamentary said.
Obviously, he said Sabah still needed foreign workers. However, their entry to the various identified sectors must not compromise the business operation of the local players.
“We need to safeguard the interest and welfare of both our employers and foreign workers and it is for this reason that we are urging the national government to accept our much need request,” he reiterated.
The Malaysian Consumer Protection Association Sabah Chapter echoed similar sentiments and fears that enforcement of the new employment policy for foreign workers would compel companies and employers to pass the extra financial burden to the consumers.
“The cost of living in Sabah continues to be on the rise and we do not want to see and experience additional burden to be shouldered by the consumers in the near future,” its president, David Chan, stressed.
He said reducing the present levies for foreign workers would be the right and logical thing for the government to do to address the confusion and at the same time solve the perennial illegal immigrant problem.
“Reduction of the foreign levies would encourage employers and companies to ensure their workers are properly documented, additional revenues for the state and in a way address state security amongst others.
Instead of pointing fingers at one another, David said the controversial issue would be best addressed with all parties concerned sitting in a round table.
In welcoming the decision of the Malaysian government, documented Filipinos and Indonesians here said the policy will inspire them to be loyal to their sponsors and be more productive in their respective work places.
“We will also be able to send more money to our love ones back home apart from working happily without much financial worries,” they stressed.