Economic And Labour Market Reforms Strengthen Country's Foundations - Ministry

KUALA LUMPUR, March 6 (Bernama) --  The government is confident that efforts to reform the economy and labour market will strengthen the country’s economic foundations and ensure a dynamic, inclusive, and competitive labour market, according to the Ministry of Economy.

It stated that the stability and strength of the country's economic fundamentals will not only ensure economic growth but will also be reflected in higher income, improved business competitiveness, and the creation of high-quality and high-income job opportunities for the people.

"In this regard, the government is committed to implementing the multi-tier levy mechanism (MTLM) this year to reduce the dependency on foreign workers. The proceeds from the levy collection will also be reinvested back into industries to engineer business processes towards automation and mechanisation," said the ministry in a written response posted on the official parliament website last night.

The ministry made this statement in response to a question by Datuk Seri Wee Jeck Seng (BN-Tanjung Piai) regarding the high dependence on foreign workers and how the government can address this challenge.

It added that the government is also drafting the country's medium-term document, the 13th Malaysia Plan (2026-2030), which includes strategies and initiatives to reduce dependence on foreign workers. "Among the aspects being reviewed is setting the limit of 15 percent foreign worker employment, compared to the total workforce, to a lower percentage," said the ministry.

Additionally, the government is also reviewing the maximum duration for employing foreign workers and initiatives to increase investments in automation and mechanisation.

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According to data from the 2023 Labor Force Survey by the Department of Statistics Malaysia, two million or 12.7 percent of the workers in Malaysia are non-citizens.

-- BERNAMA