KUALA LUMPUR: Several restaurant associations are calling for the proposed multi-tier levy system to be postponed temporarily.
At a joint press conference on Wednesday (Jan 22), the Malaysian Muslim Restaurant Owners Association (Presma) and Malaysian Indian Restaurant Owners Association (Primas) said the system would significantly affect smaller businesses financially.
Presma president Datuk Jawahar Ali Taib Khan said the system would increase the cost of hiring foreign workers, especially for smaller industries like restaurants.
"We appeal for this to be postponed. Prices of raw goods and more have increased across the board,” he said.
Jawahar added that many Presma members have complained and asked if there is any way to raise prices.
“However, I told them that we have to sacrifice and continue offering affordable foods for the public. We really do hope the government considers postponing this until the economy stabilises," he said.
In May last year, Human Resources Minister Steven Sim said the government is mulling a multi-tier levy, where companies would pay more for each worker if they hire more.
Sim also said the system aims to incentivise companies to reduce their dependence on migrant workers and encourage them to hire and train locals.
Revenue from the multi-tier levy would be channelled to upskill local workers, particularly from small and medium enterprises (SMEs), Sim said.
According to news reports, the system is targeted to be rolled out this month.
Separately, Jawahar also urged the government to consider allowing the Mamak and Indian restaurant sectors to recruit more foreign workers.
He claimed the industry was lacking some 25,000 workers as locals generally did not favour working these jobs, leaving the industry reliant on foreign hands.
Jawahar proposed reintroducing the scheme where outgoing foreign workers, whose terms have ended, would be directly replaced with a new foreign worker in a one-to-one format.
"This system will be a great help when it comes to manpower," he said.
He also said foreign workers in Mamak and Indian restaurants only made up about 18% of the 2.4 million foreign workers in the country.
He proposed extending the age limit of foreign workers to 65 instead of the current 18-45.
Also present were Primas president Datuk J. Govindasamy and other senior members from Presma and Primas.
