Govt’s Two Pct Contribution For Foreign Workers Balances Welfare And Business -- FMM
KUALA LUMPUR, Feb 3 (Bernama) -- The government's proposal to implement a mandatory Employees Provident Fund (EPF) contribution rate of two per cent for foreign workers from the initially proposed 12 per cent reflects an effort to balance worker welfare and business sustainability, said the Federation of Malaysian Manufacturers (FMM).
FMM president Tan Sri Soh Thian Lai said the federation had previously engaged with the EPF to raise concerns over the initial proposal, citing the cumulative cost burden on employers, including higher statutory contributions, escalating operational expenses, and rising labour-related costs.
“The FMM welcomes the government’s decision to implement a reduced two per cent EPF contribution rate for foreign workers, compared to the previously proposed rate announced during the tabling of Budget 2025 in October 2024, which had included yearly increments over six years,” Soh said in a statement today.
He emphasised that FMM remains committed to working with the government to ensure that policies affecting the manufacturing sector strike a balance between business growth and fair labour practices.
“We look forward to continued engagement with the relevant ministries to address any outstanding concerns and ensure a smooth implementation of the new EPF contribution structure,” he added.
Meanwhile, Prime Minister Datuk Seri Anwar Ibrahim said today that the proposal would be discussed at the cabinet level this week, with the Ministry of Human Resources set to announce the details.
During the tabling of Budget 2025 last year, Anwar announced plans to make EPF contributions mandatory for all non-citizen workers as part of the government’s commitment to ensuring fair treatment for all workers, regardless of nationality.
-- BERNAMA