“We are happy that this multi-tier levy system proposed by FMM a few years ago will finally be introduced,” FMM vice-president Jacob Lee said at a press conference organised by the National Chamber of Commerce and Industry of Malaysia (NCCIM) today.
However, he added that there needs to be clarity from the government on its implementation process to ensure the money is being channelled for the right purpose.
FMM had been calling on the government to introduce a multi-tier system since 2009 as an effective mechanism to reduce the dependence on foreign workers.
Based on FMM’s previous proposal, the levy rate should be based on the number of foreign workers employed as a percentage of total employment in a company.
It said the system could remove all hassles and uncertainties regarding applications and approvals by removing quotas on the number of foreign workers to be employed.
This is in line with the different tier levels and the corresponding levy rates that the industry is prepared to pay.
Last Friday, Prime Minister Anwar Ibrahim announced that the government will implement the multi-tier levy system early next year.
In his 2025 budget speech, Anwar, who is also finance minister, said revenue from the levy would be channelled to industry players to drive automation and mechanisation in their businesses.
Meanwhile, NCCIM president N Gobalakrishnan said the business federation welcomed the RM7.5 billion allocation for technical and vocational education and training (TVET) programmes by the government.
“The allocation for TVET training is music to my ears. By addressing skill gaps in the workforce, we are not just filling jobs but also creating innovators, entrepreneurs and leaders of tomorrow,” he said.
NCCIM vice-president AT Kumararajah added that the allocation should be used to enhance the 1,300 TVET institutions nationwide.
“These institutions need to be strengthened and we need to focus on cluster areas like the electric vehicle, green energy and semiconductor industries,” he said.
Kumararajah emphasised the congruence between the minimum wage and TVET training.
“The wages should be tied down to the level of training of TVET graduates. If they are well-trained, then we ensure that they don’t just get jobs but also jobs which pay fairly well,” he said.