According to a Bernama report, Zahid said the Cabinet had decided that a meeting between the ministry’s secretary-general and chambers of commerce, unions, and related NGOs will be held before February 20.

“Until then, the new rates are temporarily suspended,” Zahid, who is also the Home Minister, was quoted as saying.

The foreign workers levy was introduced by the Government in 1992 due to expenses incurred by the Government in providing clinics, roads and other public facilities, also enjoyed by Malaysian citizens.

On January 31 this year, Zahid announced the increase in the levy, beginning February 1, which would see Putrajaya gaining around RM2.6 billion in revenue.

It was also announced that the foreign workers levy for the manufacturing and construction sectors would now cost RM2,500, while the levy for the service and agriculture sectors were increased to RM1,850 and RM1,500 respectively.

The announcement led to an outcry from industry players and NGOs who said the move would affect workers and employers besides hiking the cost of doing business, making investments and sourcing for labour.