Business

Labour Recalibration Programme 2.0 fee too high for firms: Rehda

Govt should lower cost to help facilitate private sector’s recovery, says association

Updated 1 year ago · Published on 07 Feb 2023 11:46AM

Labour Recalibration Programme 2.0 fee too high for firms: Rehda
The Real Estate and Housing Developers’ Association Malaysia says that the RM1,500 fee of the Labour Recalibration Programme 2.0 is too high and should be lower to enable domestic economic recovery. – SAIRIEN NAFIS/The Vibes pic, February 7, 2023

KUALA LUMPUR – The Labour Recalibration Programme (RTK) 2.0 fee of RM1,500 is exorbitant for many businesses and operators, especially in industries where hundreds of workers are utilised in a single project. 

The Real Estate and Housing Developers’ Association Malaysia (Rehda) said the sum would add up to a hefty sum that may not be financially viable.

In a statement today, its president Datuk N. K. Tong said that the fee should be kept as low as possible to encourage related businesses to take part in the programme, otherwise the high amount can be a deterrent.

He said the government’s aim should be to help the industries and the nation’s economy to recover, so companies could offer more jobs to more workers and be profitable, enabling them to pay taxes. 

“The programme itself should not be used as a source of income for the government. 

“As all costs continue to increase, the government should come in to assist,” he said while commending the recently abolished documentation fees for housing loans as a good example of reducing the cost of doing business. 

Tong said by reverting to a lower fee, any savings could be passed to potential homebuyers in terms of lower house prices, even as developers struggle to keep prices down in the face of persistent and rising inflation. 

However, despite the high cost, Rehda encourages employers in all industries with illegal migrant workers to take part in the recalibration programme to ensure that the workers’ well-being is protected and their projects and businesses could resume without issues. 

“We hope our members will adhere to this law, as reluctance to do so may affect current projects and planned developments in the future,” said Tong, adding that Rehda will continue to encourage its members to carry out its nation-building responsibility by providing quality, affordable homes to the people.

On January 27, Home Minister Datuk Seri Saifuddin Nasution Ismail announced that the fee to hire undocumented migrants in this country under RTK remains at RM1,500. 

Employers could start applying for recruitment of foreign workers through RTK 2.0 from January 27 to December 31, 2023.

The eight sectors allowed to recruit foreign workers are manufacturing, construction, mining and quarrying, security guards, services, agriculture, plantations and foreign maid. – Bernama, February 7, 2023

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