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Malaysia puts higher levy charges for foreign workers on hold

 

Kathmandu, February 12

Malaysia’s Deputy Prime Minister Ahmad Zahid Hamidi today said his government’s plans to impose higher levy charges for foreign workers has been postponed pending a meeting between the Home Ministry’s secretary-general and industry players, Malaysian media reported.

The Cabinet has decided that a meeting between the ministry’s secretary-general and chambers of commerce, unions, and related NGOs be held before February 20, he said. Until then, the new rates are temporarily suspended, according to Hamidi.

malesia

Under the new rates, there are only two categories compared to previously, when they were based on various sectors, with those in the manufacturing, construction and service sectors to be charged RM2,500 per worker and those who work in the plantation and agriculture sector having to pay a levy of RM1,500 for each worker.

The government had announced that it will hike the levy while presenting the recalibrated Budget 2016 on January 28. This triggered an outcry from industry players and worker’s rights groups, who urged the government to reconsider its decision, taking into account the high costs of operations in current economic times.

Lakhs of Nepalis are working in Malaysia. A higher levy charge for foreign workers will hit them hard.

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