Malaysia's Plan to Increase Levy on Foreign Workers

January 3, 2011POEA MARKET UPDATE NO. 04-11MALAYSIA'S PLAN TO INCREASE LEVY ON FOREIGN WORKERSThe Philippine Embassy in Kuala Lumpur, Malaysia has reported on the plan by the government of Malaysia to increase the levy on foreign workers in 2011. According to the report, AmResearch Sdn Bhd senior economist Manokaran Mottain was quoted by one of the biggest English newspaper in Malaysia saying that the move could discourage the hiring and lessen Malaysia's dependency on foreign workers. Malaysian Estate Owners Association president Boon Weng Siew, however, opines that increasing the levy would not reduce the need to employ foreign workers based on the existing demand. Mr. Boon said that he is hoping that the planned increase would not apply to the plantation sector, of which the hiring of foreign workers is not a choice but a need. He added that Malaysia, since 1980, has followed pro-manufacturing sector policies that facilitated rural-urban migration leaving the plantation sectors no recourse but to employ foreign workers.Mr. Boon also believed that the planned increase would only be an added financial...