The Federation of Malaysian Manufacturers (FMM) greatly appreciates the statement made by Human Resources Minister on May 1 that the government has deferred the implementation to double the levy of foreign workers in the manufacturing, services and agriculture sectors.

The government's move to defer the doubling of levy is certainly a welcome respite for manufacturers who are faced with the prevailing economic uncertainties and difficult operating conditions.

FMM would like to reiterate that:

  • Policy and procedure changes should be pre-announced and implemented on a gradual basis according to a set time-frame and/or in stages.

The government should consider a gradual increase over time and in proportion to the percentage of foreign workers employed.

  • The levy policy must be standard across all sectors. The recent policy proposes to double the levy for all sectors except for the construction and plantation sectors and for domestic maids.

Every business sector faces its own difficulties. Setting different levy rates for different sectors could be exploited by some.

Foreign workers brought in officially for the lower levy sector could be deployed illegally as contract/temporary workers to employers in the higher levy sector.

  • The operations of workers outsourcing companies should be terminated to address indiscriminate recruitment and oversupply.

  • Levies should be ploughed back into the sectors to help businesses finance mechanisation efforts such as investments in automation; in setting up childcare centres to attract a higher female labour force participation and in productivity-improvement measures.

The writer is FMM president .