Bosses have to pay RM10,000 levy in full

PUTRAJAYA: Employers will have to pay RM10,000 in full annually, instead of just 20% of the total levy, if they wish to maintain their skilled foreign workers who have worked for at least 10 years with them, says Finance Minister Lim Guan Eng.

The government announced on Monday that foreign workers will have to pay 80% of the RM10,000 levy, with employers bearing the remaining 20% if they decide to extend their service for an additional three years.

“We would like to announce that the government will revert to its initial plan.

“In total, the employers have to pay RM10,000 annually so there will be no issue,” he told reporters at the Finance Ministry.

The reversal, he said, came following complaints by employers that their foreign workers could not afford to pay 80% of the total levy.

“The complaints were highlighted in Sin Chew Daily and the report also gave the impression that the levy had been raised from RM1,850 to RM10,000.

“I want to make it clear that the levy for foreign workers who serve less than 10 years has not changed; it is still RM1,850 a year,” he said.

Lim said the government only wanted to help ease the burden of employers who wished to retain their skilled workers.

The policy, which takes effect on Oct 1, only applies to foreign workers in formal sectors such as manufacturing, construction, plantation, services, agriculture, mining and quarries.

The federal government is projected to collect about RM1bil in revenue for about three years through the levy programme.

On the monetisation of 1Malaysia Development Bhd (1MDB) assets, Lim said the proceeds would go into a consolidated fund before being transferred to the relevant trust accounts.

He also said the government had identified the assets but would leave it to the Attorney General’s Chambers to handle the case.

The Malaysian Anti-Corruption Commission (MACC) is trying to bring home all the overseas assets allegedly purchased with funds that were misappropriated from 1MDB.

MACC deputy chief commissioner (operations) Datuk Seri Azam Baki said these included a Bombardier 700 aircraft worth RM143mil, which is currently in Singapore, three paintings worth more than RM400mil and properties purchased in several countries.