Impact of multi-tiered levy

PETALING JAYA: The plantation and construction sectors, which have large foreign worker workforces, will be facing higher costs next year with the multi-tiered levy system for foreign workers under Budget 2023.

Under the system, companies with high numbers of foreign workers will be charged higher levy rates.

The government has proposed to channel the increased levy revenue to support employers in automation initiatives to reduce dependence on foreign workers.

Meanwhile, there will be strong economic multiplier effects from the billions allocated for education and housing related infrastructure initiatives. Next year, RM2.3bil will be allocated to make sure students enjoy a conducive and safe learning environment compared with RM1.7bil for 2022.

From this allocation, RM1.1bil will be for the repair and refurbishment of all schools, including vernacular and religious schools.

A total of RM1.2bil will be given to upgrade the infrastructure in dilapidated schools, particularly to replace old wooden buildings in Sabah and Sarawak involving 123 projects in Sabah and 182 projects in Sarawak.