. delaying double levy policy for foreign workers
Posted on May 02nd, 2009 in Asia
Petaling Jaya, May 2 (ANI): Malaysia’s Human Resources Minister Dr S. Subramaniam has announced that the doubling of the levy for foreign workers has been deferred due to the economic crisis, a move that that will benefit thousands of Indian workers employed in the food outlets in the country.
“After listening to the grouses from industry players, the Cabinet has decided to postpone the levy increase,” The Star quoted Subramaniam, as saying.
He however added, that the implementation of double levy charges for foreign workers would be considered once the economy sets back to normal.
“When the economy looks better, the Cabinet will have to study the matter again and then see how it can be implemented,” he said.
In his statement, Subramaniam said he was informed that more than 375,000 workers in 25,000 Indian, Muslim and Chinese food outlets risked losing their jobs if the levy increase was carried out.
In the mini-budget announcement in March, Prime Minister Najib Tun Razak has said foreign workers, except for those in the plantation, construction and domestic sectors, would have their levy doubled from 1,800 ringitts per year currently.
The policy was aimed at reducing Malaysia’s dependency on foreign workers, and to allow unemployed Malaysians to fill the vacancies.
The move was slammed by many sectors, including restaurants and manufacturers, who claimed that their business would suffer due to increased costs.
The Malaysian Government was also under pressure because of the economic downturn. (ANI)