Multi-tier foreign worker levy system postponed to July: home minister

PUTRAJAYA – A joint Home Ministry and Human Resources Ministry committee today announced that the multi-tier levy system for foreign workers, which was set to start on January 1, will be postponed to July 1.
 
Home Minister Datuk Seri Hamzah Zainudin said the decision in light of the impact of the Covid-19 pandemic stifling economic growth and affecting business operations.
 
"The committee also decided to review the levy rates within the multi-tier levy system for each sector to ensure effective implementation in the future," he said after co-chairing the meeting with Human Resources Minister Datuk Seri M. Saravanan here today.
 
Hamzah also announced that the committee will discontinue the employment of foreign workers for the frozen metal/scrap and recycling sub-sector in stages within the next three years.
 
"The justification behind the decision is based on prioritising the employment needs of local workers, reduction of licences within the said sub-sector, and to aid the industry transformation's from mechanisation and automation," he said.
 
Currently, foreign workers only make up 13.9% (2,931 workers) of the total 21,154 workers in the frozen metal/scrap and recycling sub-sector.
 
Hamzah also announced that the employment of foreign workers as goldsmiths will be considered under the Professional Visit Pass (PVP) in an effort to encourage the training of local goldsmiths.
 
"The service of foreign goldsmiths will no longer be needed once local goldsmiths are able to fulfil industry needs," he said.
 
The committee, Hamzah said, also agreed to the suggestion for employers from major companies to be allowed to bear the cost of repatriation for illegal immigrants currently held at immigration depots.
 
"The repatriation process will be conducted under strict Covid-19 measures. The ratio of repatriated worker to new foreign worker will be at 1:1," he added. – The Vibes, December 3, 2020