Wee: Guan Eng’s new policy on foreign workers toothless

PETALING JAYA: The government’s decision to allow foreigners with 10 years’ working experience extension of three more years is laudable.

However, the RM10,000 yearly levy is too high, says Datuk Seri Dr Wee Ka Siong.

“With this system in place, employers do not have to go through the minister for approval,” said the MCA deputy president.

“But the problem lies in the costly levy,” he said in a statement.

Dr Wee noted that Finance Minister Lim Guan Eng said the new levy rate would bring in a tax income of RM1bil for the government.

“This appears as if the government stands to gain from this policy – but at the expense of small and medium enterprises.

“This has put greater pressure on employers,” Dr Wee pointed out.

He described the previous practice of the Barisan Nasional government as “more business-friendly and convenient”.

“Lim should do more homework to gain a better understanding on past practices instead of insisting that the Barisan administration did not offer this option at all – and urging the business operators to be grateful,” he said.

Dr Wee said allowing skilled foreign workers who had served a decade to extend their work permits was not a “groundbreaking new policy”.

“Although the previous administration did not lay down any policy in black and white on this extension, applications were submitted for the consideration of the Home Minister on a case-by-case basis.

“Once approved, the annual levy for these foreign workers would have remained at the existing rate of RM1,850 or below.

“But these foreign workers are not entitled to permanent residency,” he added.

As for Lim’s suggestion to the employers to send their skilled workers back home if they did not wish to pay the RM10,000, Dr Wee said it was something common among business owners.

“Those who were not successful in renewing their skilled workers’ work permits would send their workers back home before making arrangements for them to be brought back again.

“Business operators will surely opt for this route after weighing the economic impact of the new levy, thus rendering the new policy toothless and ineffective,” Dr Wee said.