KUALA LUMPUR: Exempt food industry employers from the mandatory monthly Employees Provident Fund (EPF) for foreign workers, said the Malaysian Food Manufacturers Association.
The association in a statement on Wednesday (Dec 3) urged the Federal Government to opt for introducing supportive policies that will help small and medium enterprises (SMEs) accelerate industrial transformation and reduce long-term dependence on manual labour.
Its national president Ding Hong Sing said that as a labour-intensive sector, the food industry requires significant time and financial resources to achieve industrialisation, automation and modernisation.
"This is especially true for SMEs seeking to enhance efficiency and reduce reliance on a large foreign labour workforce.
"The current EPF requirement for foreign workers places additional financial burden on food manufacturers," he said.
Ding said many factories depend heavily on foreign labour to maintain daily production operations.
"As a labour-intensive industry, this has resulted in a substantial increase in operational costs.
"Given the significant differences in labour structures and operational models across industries, we (the association) urge the government to take industry-specific needs into account when reviewing and implementing related policies.
"This is to ensure they are targeted and practical," he added.
He said the food industry has long faced labour shortages leading to challenges in production scheduling and disruptions across the supply chain.
"We hope that the government will further relax foreign worker recruitment policies in line with actual industry needs, ensuring long-term competitiveness and stability within the food manufacturing value chain.
He said the association's establishment was to offer structured, professional and unified development for Malaysia’s food industry.
“Our key focus moving forward includes helping businesses transition towards automation, digitalisation and modernisation,” he said.
This includes supporting members in obtaining food safety certifications such as HACCP (Hazard Analysis and Critical Control Points) and halal certification, he added.
Ding said the association will establish supply chain resource-sharing platforms and domestic/international market linkages.
He said this includes organising industry training, seminars and business networking sessions as well as promoting talent development and technological advancement within the food industry,” he said.
