SIBU: Foreign workers Employees Provident Fund (EPF) contribution would reduce the dividend rate of existing EPF members but also offer little economic benefit, says Sarawak United People's Party (SUPP) Dudong chief Wong Ching Yong.
He cited Singapore’s decision to close its Central Provident Fund (CPF) accounts to foreign employees, effective April 2024, as evidence of the potential drawbacks.
“Can Malaysia afford to pay the dividends amounting to hundreds of millions of ringgit annually?” he said at a press conference on Sunday (Nov 10).
Wong, who is also SUPP’s central deputy organising secretary, said there are approximately 2.5 million documented foreign workers in Malaysia’s 17.2 million workforce.
He added that requiring foreign workers to contribute to EPF could increase businesses' operating costs and the expenses of families who hire domestic helpers. At the same time, he said, it would result in companies cutting local jobs or raising prices, potentially fueling inflation.
As an alternative, Wong proposed establishing a foreign worker insurance plan instead.
