‘Don’t implement new foreign worker levy yet’


KUALA LUMPUR: Ahead of the proposed implementation of the multi-tier levy system for foreign workers, several restaurant associations are calling for the move to be temporarily postponed.

Both the Malaysian Muslim Restaurant Owners Association (Presma) and Malaysian Indian Restaurant Owners Association (Primas) said the system would bring a major financial burden on smaller businesses financially.

They also said the system would drive up the cost of hiring foreign workers, especially for restaurants, sharply.

“We appeal for this to be postponed. Prices of raw goods and more have increased across the board.

“Many of our members have also complained and asked if there is any way to raise prices.

“However, I told them that we have to sacrifice and continue offering affordably priced foods for the public.

“We really do hope the government considers shelving this until the economy stabilises,” Presma president Datuk Jawahar Ali Taib Khan told a joint press conference yesterday.

In May last year, Human Resources Minister Steven Sim said the government is mulling a multi-tier levy – with companies having to pay more for each worker if they hire more.

Sim also said the multi-tier levy system is 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 has been targeted to be rolled out this month.

Separately, Jawahar urged the government to consider allowing the “mamak” and Indian restaurant sectors to recruit more foreign workers.

According to him, the industry currently lacks some 25,000 workers as locals generally do not favour these jobs, leaving the industry reliant on foreign hands.

Jawahar proposed that the government reintroduce the scheme where outgoing foreign workers, whose terms have ended, will 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 suggested that the age limit of foreign workers be extended to 65 instead of the current 18-45.

Also present were Primas president Datuk J. Govindasamy and other senior committee members from both associations.

Separately, Jawahar claimed that several quarters are allegedly pinching foreign workers at restaurants to fill up their own manpower shortages.

“For example, they will ask the worker how much their wages are and then offer better pay.

“A day later, the worker will be gone. This especially happened when the country was transitioning out of the Covid-19 pandemic,” he said, expressing concerns that this could happen again.

Jawahar also advised workers who are mistreated to make a report.

“They can also report directly to their embassies. I call on our members to only employ foreign workers legally and not fish around for them,” he said.

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