Cabinet to look into new foreign worker levy woes, says Wee

PUTRAJAYA: The increase in foreign worker levy may be revised again.

Minister in the Prime Minister’s Department Datuk Seri Dr Wee Ka Siong said the issue was discussed during the post-Cabinet meeting yesterday.

“The Cabinet is very concerned about this matter, following the reaction from the business community,” he said after the meeting.

Dr Wee said he, along with other ministers including Datuk Paul Low and Datuk Seri Mah Siew Keong had highlighted the public’s view during the implementation.

“We feel there is need for a review,” he said.

Upon hearing their arguments, Prime Minister Datuk Seri Najib Tun Razak had requested his deputy Datuk Seri Dr Ahmad Zahid Hamidi to look into the matter.

“The PM has asked Dr Ahmad Zahid to meet with business chambers as soon as possible,” he said.

Dr Wee said the decision to meet up with the business community pointed to the likelihood that the new levy would be revised.

“It seems to be going in this direction,” Dr Wee added.

Dr Wee pointed out that the abrupt increase in the levy has sparked uncertainties among employers.

He added that following the rise in levy as much as 100% to nearly 300%, many were whispering that they would resort to hiring illegal workers due to the cost increase.

“We do not want to promote the use of illegal workers. We want an amicable solution which will not over-burden the employers.”

Dr Wee said many employers would not be able to bear the burden of an abrupt hike in levy.

He said if the employers decide to pass on the cost increase to consumers, the country could face undesired inflation.

“If they cannot bear the burden, the implementation will backfire.”