Levy will be a burden, say firms

PETALING JAYA: Manufacturers say the doubling in levy for foreign workers in the manufacturing industry will cause a heavy strain on the industry.

The Federation of Malaysian Manufacturers (FMM) president Datuk Seri Saw Choo Boon described the increase in levy as “quite sudden”.

Saw said the new rate would be a big burden considering the challenges the industry was facing.

“We hope the Government reconsiders it and implements the move in phases when the economic situation improves,” he told The Star.

Saw said the Government should have consulted FMM before making the decision, as it involved such a major change.

“The industry faces many other challenges in the hiring of foreign workers and it would have been better if all these are handled holistically by the Government,” he added.

Masterbuilders Association Ma­­lay­sia (MBAM) president Matthew Tee said it was the wrong time to raise the levy for foreign workers.

“As we all know, costs are going up and things are not looking good,” he said.

He also echoed the view that the increase should be implemented over time and in stages.

Tee said sectors that relied on foreign workers were also being hit hard by ad hoc decisions by various ministries.

He cited the example of the Human Resource Ministry’s move to get employers to increase insurance coverage for foreign workers.

“These ministries are working in silos and such decisions add to our costs,” he said.

Tee said decisions that affected businesses should be made after proper dialogue.

Malaysian Employers Federation chief Datuk Shamsuddin Bardan described the increase as “uncalled for” as employers were already hard-pressed.

He said the Trans-Pacific Part­nership Agreement, which had been approved by Parliament, made it clear that levy for foreign workers would be borne by employers.

Shamsuddin said the Budget 2016 revision did not extend any concessions to employers in spite of the difficulties they were facing.