Malaysian Plastics Manufacturers Association (MPMA) Shares Concerns Over Government's Unanticipated EPF Mandate For Foreign Workers

PETALING JAYA, Selangor, Malaysia, Oct 23 (Bernama) -- The Malaysian Plastics Manufacturers Association (MPMA) echoes the concerns raised by the Federation of Malaysian Manufacturers (FMM) regarding the government’s sudden decision to implement the mandatory Employees Provident Fund (EPF) contributions for foreign workers. MPMA is deeply disappointed by the lack of industry engagement or consultation on this critical policy change, which has far-reaching implications for the plastics industry and the wider manufacturing sector.

The plastics industry employs approximately 170,000 individuals, of which 30% are foreign workers. This new policy will have a direct and significant impact on labour costs, as foreign workers make up a substantial portion of the workforce. Labour costs already constitute 15-20% of total production costs for plastics manufacturers. In addition, the increase in the minimum wage from RM1,500 to RM1,700 by February 2025 will undoubtedly place significant strain on businesses. These cost pressures threaten to squeeze manufacturers’ margins, jeopardizing the viability of many businesses in the plastics industry.