Govt to set up multi-tiered foreign worker levy system


Prime Minister Anwar Ibrahim says skills mismatch, low wages and slow productivity growth are hindering Malaysia’s transition to a high-income economy. – The Malaysian Insight file pic, September 11, 2023.

THE government will implement a multi-tiered foreign worker levy system in the near future, Prime Minister Anwar Ibrahim said.

He said it is aimed at securing job opportunities for locals and promoting automation and mechanisation while maintaining the policy of limiting foreign workers at 15% of the total workforce.

He said skills mismatch, low wages and slow productivity growth are the key issues hindering Malaysia’s ability to transition to a high-income economy.

“The government has unveiled several bold initiatives to implement a progressive wage model that benefits both workers and employers.

“This policy involves increasing wages, skills and worker productivity. Employers will benefit from improved productivity, employee loyalty and company competitiveness,” he said when tabling the 12th Malaysia Plan Mid-Term Review in the Dewan Rakyat today.

Anwar, who is also finance minister, said the government will intensify efforts to ensure that the female labour force participation rate reaches the target of 60% within 10 years.

“Efforts to encourage women to remain in or rejoin the workforce will be enhanced by providing essential facilities and support, including childcare services, financial incentives and flexible working hours,” he said.

“Among the programmes implemented are the MamaCare initiative, affordable childcare centre incentives, the Career Come Back Programme and workplace daycare fee subsidies.”

Anwar said the role of women in the care economy will also be recognised as an effort to increase their participation in the labour market and address the challenges of a shrinking workforce due to the ageing population trend.

He said to empower people with disabilities, their information will be integrated into the MyFutureJobs portal and procedures for their recruitment in the civil service will be improved to achieve a 1% representation. – Bernama, September 11, 2023.



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