MAICCI wants Govt to reconsider foreign worker levy

  • Nation
  • Thursday, 27 Sep 2018

PETALING JAYA: Reconsider the RM10,000 levy for skilled foreign workers, says the Malaysian Associated Indian Chambers of Commerce and Industry (MAICCI). 

Its president Tan Sri Dr. Kenneth Eswaran said that the levy, to be paid by employers for each skilled foreign worker who wants to remain in the country after their 10th year here, will pose an extra burden on employers. 

“The imposition of the RM 10,000.00 annual levy payment will impact the small Indian business owners as they could not afford to pay such a big amount to retain a worker.

“(The levy) will definitely impact a business and the cost will be transferred to the end user, that is, consumers,” said Eswaran in a statement on Thursday (Sept 27). 

He said that MAICCI held a meeting with all Indian and Indian Muslim businesses on Thursday, where many of those attending expressed fear that the levy will impact their businesses.

“All the representative from Indian trade and Indian Muslim trade associations have unanimously agreed and urge the Government to retain the current levy charges amounting to RM1,850 per worker for those remaining in the country after their 10th year,” he said. 

He also hoped that the Government will seek continuous engagement with respective stakeholders when regarding the issue of foreign workers. 

Finance Minister Lim Guan Eng announced on Tuesday (Sept 25) that employers will need to pay a levy of RM10,000 for each skilled foreign worker they retain after their 10th year in the country. The levy is for an extension of three years. 

The policy will take effect on Oct 1.

The levy only applies to foreign workers in formal sectors such as manufacturing, construction, plantation, services, agriculture, mining and quarries.

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