Parti Sosialis Malaysia (PSM) has urged the government not to cave in to demands by companies to cancel the Employer Mandatory Commitment (EMC) policy that requires employers to foot the levy on foreign workers.

Hailing the government's move, PSM central committee member R Rani said the policy was meant to encourage the hiring of local workers.

"PSM would like to strongly point out that levy is a tax to deter employers from giving priority to migrant workers when hiring.

"So, employers should pay the levy and not extract it from their workers, as they have been doing.

"By raising the cost of migrant labour for the employers, they will be compelled to recruit more local workers and in the long run, reduce the country's dependence on migrant labour force," she said in a statement.

Rani, who is PSM's migrant desk coordinator, added that migrant workers already foot their share of the cost when they pay for recruitment fees.

"These workers, looking for a better life, are forced to mortgage their land, house and even take loans to pay for the recruitment and travelling costs.

"The RM5 billion is a part of the earnings of migrant workers which they may remit home; what belongs to them cannot rightly be used as a negotiating chip by employers.

"The implications of making the migrant workers to pay for their levy is inhumane and exploitative," she said.

Rani noted that employers have complained bitterly about the high cost of recruiting migrant workers and this could be addressed by cutting out profit-driven recruitment agents and implementing a government-to-government mechanism.

"The government should implement the government-to-government and the One Stop Centre to cut unnecessary costs for employers, but should remain firm on financial obligations to workers under the EMC," she said.