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Wednesday April 8, 2009
MCA wants Cabinet to review levy hike
KUALA LUMPUR: The MCA will draft a working paper for the Cabinet’s attention on the increase in foreign worker levy.
Its Public Services and Complaints Bureau chairman Wong Nai Chee said it was getting feedback from the manufacturing and services sectors as it was not the right time to raise the levy in view of the economic situation.
He said the Government should have a more comprehensive mechanism to deal with the problem of hiring locals.
“Some restaurant owners have told me that they will close down when the new policy takes effect next month because they cannot afford to pay the levy and will have no workers,’’ he said after meeting representatives of the two sectors yesterday.
The two sectors want the present levy to be maintained – RM1,200 (manufacturing and island resorts) and RM1,800 (service), and the levy deducted from the foreign workers’ salaries.
Under the stimulus package announced last month, the levy would be doubled and borne solely by employers from May 1.
Malaysian Indian Restaurant Owners’ Association chairman Datuk R. Ramalingam Pillai said its 2,000-odd members were forced to hire foreign workers as the locals did not want to take up the jobs.
“We understand the Government’s intention is to reduce unemployment but we just cannot find any local workers,” he said.
Malaysian Retailer-Chains Association member Benjamin Ee said it was reasonable for foreign workers to pay the levy since it resembled income tax.
He said foreign workers were more disciplined and bound by an employment contract so that they would not resign.
He said he was paying some RM1,300 including food and accommodation for each foreign worker, almost the same as a local worker’s salary.
外劳
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