BERNAMA – Implementation of Multi-Tiered Levy Mechanism Should Align with Online Foreign Workers Application

FMM Calls for Implementation of Multi-Tiered Levy Mechanism to Strengthen Foreign Workers Recruitment Process

KUALA LUMPUR, May 13 (Bernama) — The Federation of Malaysian Manufacturers (FMM) has emphasized the importance of implementing a multi-tiered levy mechanism alongside a single end-to-end online foreign workers application and approval process by the end of this year or early 2025. According to FMM, this coordinated effort will not only streamline the recruitment process but also promote greater technology adoption in the country.

FMM has urged for a single ministry to oversee foreign workers to ensure a holistic and transparent administration without unnecessary human intervention. The federation also stressed the need for transparency and ease of implementation in the tiered levy system, with clear costs and a gradual increase in rates to minimize the impact on businesses.

In addition, FMM has called for incentives to reduce the reliance on foreign workers across all economic sectors. The federation proposed that the levy rate should be based on the number of foreign workers employed, with any increase in levy rates being gradual and announced a year in advance.

Furthermore, FMM highlighted the importance of reviewing the 80:20 ratio of local to foreign workers requirement, which is currently on hold until December 2024. The federation suggested that a percentage of the levy collected should be reinvested back into the industry to support training and upskilling of local workers through a national apprenticeship fund. Additionally, FMM recommended the establishment of a national automation fund to automate business processes and reduce dependence on low-skilled foreign workers.

Overall, FMM’s proposals aim to enhance the efficiency and effectiveness of the foreign workers recruitment process while promoting the development of local talent and reducing reliance on foreign labor in Malaysia.

— BERNAMA