Higher levy on foreign workers frozen

There will not be any increase in the levy for foreign workers at the moment due to the present economic situation. MP Dr Hiew King Cheu, in a statement here, Wednesday, said the levy increase for foreign workers in the agriculture, manufacturing industries and service sector has been deferred in consideration of the difficulties faced by the industries.

"The increase on the levy will not be implemented in August 2009," he said, referring to a written reply he received from Home Minister, Datuk Hishammudin Tun Hussein, at the Dewan Rakyat, recently.

"This is appropriate for the moment and I hope the Government will view the situation in Sabah as important. We need the foreign workforce in our agriculture, manufacturing industries and service sectors.

"Sabahans are not willing to work in these areas due to the low pay structure and nature of the work, therefore, there are opportunities for the foreign workers."

Hishammudin said the Government's proposal to increase the levy was a "win-win" basis and that it was in order to install a mechanism to reduce the dependence on foreign workers, adding when the cost goes up for employing foreign workers, employers will consider offering better pay to the local workforce.

"The Minister's reply is easier said than done in real life situation this is difficult to achieve," Hiew said.

"To increase the levy to a high level may not solve the problem but invite more complications. We in Sabah have been using foreign workers for a long time, and we don't see how the situation can be changed overnight.

"In order to help the situation, we urge the Government not to impose any more increase in the levy on the employment of foreign workers, and (instead) provide incentives to those who employ local workers."