Malaysian Trades Union Congress (MTUC) secretary-general N Gopal Krishnam questioned the move to postpone the rate increase, alleging that certain unscrupulous employers were taking advantage of the current system.
“We do not understand why the Cabinet has to defer the levy hike because we are of the opinion that employers are abusing the system to bring in more migrants instead of locals.
“Just because the employers are demonstrating in front of the ministry, the Cabinet is delaying it. It is very unreasonable for the government to do this,” he told FMT when contacted.
Gopal said the previous system in 2013 should be maintained, as it was unfair for workers to pay the levy.
“Prior to 2013, the employers were the ones paying the migrant workers’ levy and this must be reintroduced.”
On the other hand, Master Builders Association Malaysia (MBAM) vice-president A K Nathan commended the Cabinet’s move to delay the rate hike as “wise”.
“We welcome this move (by the Cabinet). At least we know that the government is listening to the issues and wants to accommodate the requests,” Nathan told FMT.
Nathan also remained positive over the meeting between the Home Ministry and industry players this morning as the government began engaging stakeholders for discussions on the levy.
“Looks like the government wants to listen to the issues and the problems faced by the industry,
“We are hoping to see how the whole thing is going to be implemented.”
Nathan expressed confidence that the government can resolve the issue to the satisfaction of all affected parties.
“We are positive things will turn out for the better.”
Zahid announced the increase in levy on January 31 this year, which would see the government earning RM2.6 billion in revenue. He said it was also meant to reduce Malaysia’s dependency on foreign labour.
It was also announced that the foreign workers’ levy for the manufacturing and construction sectors would now be RM2,500, while the levy for the service and agriculture sectors would be increased to RM1,850 and RM1,500 respectively.
The announcement led to an outcry from industry players and non-governmental organisations which said the move would affect workers and employers, besides hiking the cost of doing business, making investments and sourcing for labour.