Guan Eng: Reduced extension levy fees for foreign workers from March

Foreign workers are seen at a construction site in Kuala Lumpur February 16, 2016. ― Picture by Yusof Mat Isa
Foreign workers are seen at a construction site in Kuala Lumpur February 16, 2016. ― Picture by Yusof Mat Isa

KUALA LUMPUR, Feb 24 — The government has agreed to temporarily lower the extension levy fees for foreign workers in five sectors for a one-year period effective March 1.

Finance Minister Lim Guan Eng said the reduction in levy fees between RM1,500 and RM4,000 involved the manufacturing, services (for restaurants and cleaning), construction, agriculture and plantation sectors.

Announcing the levy reduction in a statement yesterday, he said the Cabinet made the decision during a meeting on Feb 20 to lessen the burden of employers.

The new levy will start from March 1, 2019 to February 29, 2020. For the manufacturing sector it will be RM6,000, services (RM6,000), construction (RM6,000), agriculture (RM2,000) and plantation (RM2,000).

For domestic workers there is no change in the levy rates, he said.

“The federal government is concerned about the challenges faced by businesses and industries in a global situation that is facing uncertainties.

“In the Budget 2019, the government allowed employers to extend the services of their foreign workers who have worked for more than 10 years for another three years, to be borne by employers for workers who wanted to extend,” he said.

The extension levy rate for foreign workers as announced in Budget 2019 previously was for the manufacturing sector (RM10,000), services (RM10,000), construction (RM10,000), agriculture (RM3,500) and plantation (RM3,500). — Bernama

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