Hiking foreign worker levy is supposed to encourage employers opt for automation to reduce labour costs and increase productivity, but it’s unlikely to happen in the short term.
There are too many ministries and agencies involved in the employment of foreign workers.
THE sudden announcement of the government increasing the levy for foreign workers has caught the SME community unprepared. The levy for manufacturing, construction and service sectors has been increased to RM2,500, while the levy for plantation and agriculture sectors has been increased to RM1,500. The figures represent a hike of 100% to 300% in foreign worker levy.
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