Margma seeks moratorium on new foreign worker levy rule

PETALING JAYA: The Malaysian Rubber Glove Manufacturers Association (Margma) yesterday joined the growing number of critics of a new ruling by the government to have employers foot the foreign worker levy bill.
It called for a moratorium on the new policy covering the levy, which was previously paid by the workers themselves.
The change comes under the newly introduced Employer Mandatory Commitment (EMC) which was announced by Deputy Prime Minister Datuk Seri Zahid Hamidi last week.
Margma president Denis Low Jau Foo in a statement said the levy alone would mean a RM90 million increase in costs for the industry, which would be better served in the pursuit of modernisation and automation of factories to reduce its dependence on foreign workers. The estimate does not take into account additional costs on housing and transport expected of the employers under the EMC.
Low said he is perplexed by the move, which would only benefit foreign workers and see the hefty sum of RM5 billion repatriated to the workers’ home countries, causing another cash drain that Malaysia can ill-afford.
“We find it immensely surprising that officers and advisers are not advising the government well enough,” he added.
Margma also threw its weight behind calls by the Malaysian Employers Federation, the Federation of Malaysian Manufacturers and a host of other associations, or a conducive dialogue to address the EMC issue.
“We believe that a dialogue is in order and it is our hope that our deputy prime minister will take it upon himself to assist and nurture industries in Malaysia.”
Margma said it has always been supportive of the many good policies introduced by the government and its members will continue to support and further invest in new technology to modernise and automate their facilities.
On Tuesday, the Malaysian Iron and Steel Industry Federation (Misif) urged the government to rescind the policy requiring employers to bear the cost of foreign worker levy.
Misif also called on the government to conduct a stakeholders’ consultation process on the matter.