Its Minister M. Kula Segaran said the proposal was to avoid employers incurring losses on investments to bring the workers in.
The 20% deducted should be remitted to the Social Security Organisation (Socso), he added.
He said the issue of foreign workers fleeing was among major problems faced by employers.
“The proposal was submitted to the National Labour Advisory Council (NLAC) last week and it is open for discussion among stakeholders before it is finalised.
“If implemented, it is a win-win situation for employers and workers as both parties will benefit from the deduction,” he told a press conference after a dialogue session with 60 employers in the rubber glove industry here Saturday (Dec 15).
Kula Segaran said the 20% deduction of foreign workers' wages would be kept in Socso, to be handed over to them when they leave the country, after their work permits expire.
“The issue has also been raised in the meeting and the majority of employers welcomed the proposal,” he said, adding that the government did not set any timeframe for the implementation and would leave it to the industry players whether to accept or reject the proposal.
He said the proposal was not new to the industry as it had been implemented in Japan and South Korea and it was successful in addressing the issue of foreign workers fleeing. - Bernama