Multi-tier levy system for foreign workers to be set up

KUALA LUMPUR: The proposed multi-tier levy system for foreign workers is expected to be implemented by next year, said Home Minister Tan Sri Muhyiddin Yassin.

He said the government was meeting with representatives from all relevant sectors to determine the exact quantum of levies for the industries.

“We have agreed to further consult the respective sectors and sub-sectors so when we implement it, they will not be adversely affected,” he told the media after chairing the first meeting of the joint Home and Human Resources Ministries on the management of foreign workers.

Muhyiddin said the quantum proposed for the respective sectors would be relooked so that it would not be too burdensome.

“Although generally from the figures that they have worked out, there will be a rough increment of 20% over the present levy.

“So it is not so high, but in some sub-sectors it will be higher,” he added.

Muhyiddin said the government wanted the system to be implemented smoothly by next year because there would be no U-turns once it was enforced.

“However, this, of course, is subject to the Cabinet’s approval,” he said.

Muhyiddin also said the government had decided to stop the outsourcing programme.

“Previously, it was under the purview of the Home Ministry but now we have decided to transfer it to the Human Resources Ministry so it will be more systematic and in line with current laws,” he said.

The Home Minister revealed that there were over 100 outsourcing companies hiring some 26,000 employees.

“We are giving them some time to relocate their employees to selected employers. We will let the Human Resources Ministry handle it,” he said, adding that this was done following reports of alleged mistreatment and human trafficking cases of foreign workers.

As at Sept 30, there were 1,892,247 foreign workers who were issued with temporary passes by the Immigration Department, with the top five source countries being Indonesia, Bangladesh, Nepal, India and Myanmar, added Muhyiddin.

Meanwhile, Human Resources Minister M. Kulasegaran said the system, which was adopted from Singapore’s model, would see employers determine the number of foreign hires.

“It is based on the ratio of the hiring of local workers before the foreign workers can be hired.

“It is not a straightforward formula but we are looking at the quantum of levy at the moment,” he said.

The government was also mulling over an increase in the bond payment imposed on each foreign worker to curb them from abandoning their jobs.

“We now charge between RM300 and RM1,500. If the workers run away, the money will be forfeited. We want the rate to be higher.”

The final quantum, said Kulase­garan, would be decided after discussions with unions, non-governmental organisations and other stakeholders.