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Govt should revoke policy mandating EPF for foreign workers: Stampin MP | Scoop
Stampin MP Chong Chieng Jen advocates for the revocation of the policy mandating EPF contributions for foreign workers during a heated debate in the Dewan Rakyat. - Bernama file pic, November 5, 2024
News

Govt should revoke policy mandating EPF for foreign workers: Stampin MP

Chong Chieng Jen highlights increased costs for businesses, questions the necessity of contributions for workers who do not retire in Malaysia

Main Author Image
R. Dineskumar
Updated
4:45 PM MYT

 

KUALA LUMPUR – A DAP MP has urged the government to reconsider its plan to enforce Employees Provident Fund (EPF) contributions for foreign workers during a debate in the Dewan Rakyat today, adding to the growing dissent from opposition backbenchers.

Chong Chieng Jen (Stampin-PH) argued that EPF contributions are designed to serve as retirement savings for Malaysian workers.

He emphasised that since foreign workers do not retire in Malaysia, the policy undermines the fundamental purpose of the fund, which mandates contributions from both employees and employers.

Chong also expressed concerns that this policy would lead to increased operational costs for businesses in the country.

Citing Datuk Syed Hussain Syed Husman, president of the Malaysian Employers Federation (MEF), Chong noted that employers would incur an additional RM8.13 billion annually to cover EPF contributions for the 2.5 million foreign workers currently in Malaysia.

Syed Hussain has called for a postponement of the EPF policy, highlighting the need for further studies to assess the potential ramifications of including foreign workers in the EPF contributions.

“The government should take care of the rakyat and our own business sector rather than providing additional perks to foreign workers.

“Therefore, I urge the government to revoke the policy on (mandating) employers to make EPF contributions for foreign workers,” Chong stated.

In recent remarks, MCA president and Ayer Hitam MP Datuk Seri Wee Ka Siong also condemned Putrajaya for implementing the policy announced in Budget 2025. He argued that mandatory contributions by foreign workers could drive up labour costs, thereby exacerbating inflation.

Wee pointed out that Singapore has eliminated foreign worker accounts within its Central Provident Fund (CPF) and suggested that Malaysia should consider a similar approach. – November 5, 2024

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