MICCI Advocates for Review of Foreign Worker EPF Contribution Policy to Safeguard Business Health and Competitiveness
By marcom@micci.com
Dec 4, 2024
MICCI Urges Government to Review EPF Contribution Policy for Foreign Workers
KUALA LUMPUR, 2 December 2024 – The Malaysian International Chamber of Commerce and Industry (MICCI) has voiced concerns about the government's recent decision to require Employees Provident Fund (EPF) contributions for foreign workers, announced in Budget 2025. While this policy aims to meet International Labour Organisation (ILO) standards, MICCI argues that it could pose significant economic challenges for businesses and foreign workers critical to Malaysia's economy.
MICCI President Christina Tee stated that although well-intentioned, this policy may increase operational costs and create financial strain for industries reliant on foreign labor, such as manufacturing, construction, and services. The lack of prior consultation could also signal instability to domestic and foreign investors, affecting Malaysia's business-friendly reputation and long-term investment appeal.
The policy could reduce foreign workers' take-home pay, impacting their ability to meet basic living expenses and sending a significant portion of their earnings back home. Additionally, the process of accessing EPF funds after leaving the country poses logistical and administrative difficulties.
MICCI emphasized the need for inclusive stakeholder consultations to ensure policies are sustainable and beneficial. It advocates for the government to delay the policy's implementation and engage in dialogue with business and industry leaders. Through collaboration, MICCI believes Malaysia can balance worker welfare with economic growth and maintain its position as an attractive investment hub.