KUALA LUMPUR: The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) views the government’s proposed revision to set employers’ Employees Provident Fund (EPF) contributions at two per cent for non-Malaysian workers as reasonable.
In a statement, ACCIM said the revised rate, reduced from the initially proposed 12 per cent, takes into account the rising burden of high operating costs and the challenging business environment caused by the disruptive impact of tariff measures by major economies.
"While we are comforted that Prime Minister Datuk Seri Anwar Ibrahim has assured that the employer’s contribution rate will not be raised in the short term, ACCCIM hopes that the proposed amendment to the EPF Act 1991 will establish a transparent and robust mechanism to review the EPF contribution rate," it said.
The association emphasised that such a review process should involve periodic assessments of economic and business conditions in consultation with relevant stakeholders.
The government announced yesterday its plan to introduce a mandatory two per cent EPF contribution rate for foreign workers. Anwar stated that the proposal would be discussed at the Cabinet level this week, with the Ministry of Human Resources set to announce further details.
As a key intermediary between the business community and the government, ACCCIM reaffirmed its commitment to providing constructive feedback and working collaboratively to refine policies that promote sustainable economic growth and help businesses navigate ongoing challenges sustainably. - Bernama
