Govt Should Clarify Mandatory Foreign Worker EPF Contribution Proposal - MP

KUALA LUMPUR, Oct 22 (Bernama) -- A member of Parliament called on the government to clarify its proposal for compulsory Employees Provident Fund (EPF) contribution by foreign workers as announced in Budget 2025.

Jimmy Puah Wee Tse (PH-Tebrau) said the move to introduce compulsory foreign worker EPF contributions together with an increase in the minimum wage to RM1,700 is expected to raise the cost of doing business.

He said these measures will result in challenges and reduced resiliency in local businesses.

"If (the EPF contribution) is mandatory, I hope the government can delay the implementation until it holds discussions and meetings with all stakeholders, such as the Federation of Malaysian Manufacturers (FMM), small and medium enterprises and the various business chambers," he said when debating the Supply Bill 2025 at the policy level in the Dewan Rakyat today.

Regarding raising the minimum wage, Puah said an increase in productivity must accompany this measure.

"The government must ensure training to increase productivity is continued," he added.

During last Friday's presentation of the Budget 2025, Prime Minister Datuk Seri Anwar Ibrahim announced the government's proposal for mandatory EPF contribution from all foreign workers, which would be implemented in phases.

The prime minister said the government is committed to providing fair treatment to all workers, regardless of nationality, in accordance with international standards. 

-- BERNAMA