Local contractors to foot RM2b under levy plan

Foreign workers remit most of their wages to their families

KUALA LUMPUR: The Master Builders Association Malaysia (MBAM) is urging the Government to rescind the decision to make employers fully accountable for their foreign workers' levy. 

MBAM president Foo Chek Lee said the new policy will result in a financial burden to a tune of RM2bil to local contractors. 

"The local construction industry employs some 900,000 foreign workers. 

"The new policy will impair the cash flow of the employers and make our construction industry more expensive and less competitive," he said at a briefing today. 

Effective this year, employers are to be fully accountable for their foreign workers’ levy and can no longer deduct their salaries to pay the levy.

The enforcement comes under the Employer Mandatory Commitment, which aims to ensure that employers take full responsibility for their foreign workers, from the application stage right up till they return to their country of origin.