The Employees Provident Fund (EPF) contribution for foreign workers will be capped at 2% and must be implemented, says Prime Minister Datuk Seri Anwar Ibrahim.
Speaking at the ACCCIM Chinese New Year Reception 2025 on Monday (Feb 3), Anwar clarified that there had been some confusion regarding the announcement, emphasising that the EPF contribution is not cumulative.
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Speaking at the ACCCIM Chinese New Year Reception 2025 on Monday (Feb 3), Anwar clarified that there had been some confusion regarding the announcement, emphasising that the EPF contribution is not cumulative.
Read more at https://tinyurl.com/2xbdwsxf
WATCH MORE: https://thestartv.com/c/news
SUBSCRIBE: https://cutt.ly/TheStar
LIKE: https://fb.com/TheStarOnline
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NewsTranscript
00:00We hope the government would reconsider the proposed mandatory EPF contribution for the
00:11non-PR foreign worker and to exempt employers from this requirement. This measure can cause
00:19an additional financial burden on employers who have already grappling with rising goods
00:24costs in the current challenging business environment.
00:29The foreign worker levy must be done, but there was some confusion that it was going
00:33to be cumulative, two and then four and six. No. So we kept it at 2%, which is very, very
00:41minimal. The initial proposal was 12 and the Cabinet did consider the appeal by the Chambers,
00:51so we just kept it at 2%. And it will stay on for some time, until things are much better
00:58than to earn and register hundreds of millions or billions of profit, then we may increase
01:06to 4%. But for now we keep it at 2% and let us move with that sort of a decision. There
01:14is no worry about having it cumulative, unless Stephen Sim feels strongly to increase it,
01:21otherwise we will keep it at that rate first. But I must appeal to you also because the
01:29demands are more. For example, education. As you know, I've been talking about digital
01:34energy transformation. If we don't have new faculties, new training, and that requires
01:40enormous sums of money. You see in the past United States or Europe or China, what they
01:46have done in focusing on these centres of excellence, that requires not only government
01:54funds, but also huge private sector investment. But I agree with you, whatever is necessary
02:01will need to be done to facilitate improved business, including SMEs. We will do our best.