This comes after Fomema revised its policy in December 2023, requiring a mandatory yearly health screening instead of every two years.

This resulted in an increase in costs for male workers from RM190 to RM207, and from RM207 to RM217 for female workers.

FMBA chairman Abdul Malik Abdullah claimed that Fomema made the changes without proper stakeholder consultation and imposed unexpected costs on SMEs that already operate on tight margins.

“The announcement of these changes came just one day before implementation, leaving many SMEs unprepared for the sudden costs and operational adjustments,” he said in a statement today.

He also criticised the decision to reject foreign workers diagnosed with common but manageable non-communicable diseases like diabetes, hypertension and high cholesterol.

“NCDs are prevalent among working Malaysian adults, who continue to contribute to the productivity and growth of the nation.

“NCDs are also treatable and controllable. Countries such as the UK, Japan, Germany, India and China do not impose this requirement,” he said.

The association also raised concerns over the lack of access to medical reports for both employers and foreign workers, despite footing the bill for screenings.

“Employers, having funded these screenings, should have the right to relevant health information,” Malik said.

He said these new medical rules are being layered on top of other rising costs for SMEs, including a multi-tiered foreign worker levy, minimum wage hikes, EPF and Perkeso contributions, and the rollout of e-invoicing.

“FMBA calls for a halt to these practices by Fomema and a review with the relevant stakeholders on the rationale and regulatory impacts of these changes to SMEs,” he said.