New levy policy will further burden bosses: DAP MP
Published on: Friday, January 06, 2017
Kota Kinabalu: DAP Sabah Kota Kinabalu MP Jimmy Wong said the announcement that employers will be responsible for paying the levy of their foreign workers effective Jan 1, 2017 by the Federal Government would place a heavy burden on employers and the business community in the country.He said the move will definitely increase the cost of operation which is a further burden on the employers during this most difficult and critical time when the business community across all sectors was facing heavy pressure.Wong said the Federal Government did not have any consultation with employers on the matter when implementing the policy in the country.
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"This move ignores the negative impact it will have on employers in the country. Such a move may be said to be akin to 'killing the goose (employers) that lays the golden eggs'," he said, adding that a very significant percentage of the country's growth already depend on Malaysian businesses to shoulder this growth.Wong said this to the media during a press conference at the Shangrila Hotel Bandaran, here, Thursday. He added that Malaysia was already currently the worst performing country in the region in respect of its currency exchange. "This move by the Government will only add a heavier burden on employers in the country, coupled with its ever changing policies imposed on business, in addition to GST, and employers must pay the levy first policy, among others."
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According to Wong, he has already met some bosses of large companies in the State who have already shifted much of their business (or are in the process of shifting their business) overseas."They confided in me they are turning to other countries (with more attractive business environment) because of the unconducive (business) environment in Malaysia as a result of the present government's efforts to keep introducing unpopular and negative policies which affect their business.
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"In the end, more bosses and business will flee the country and their absence and also the loss of jobs and perhaps loss of millions of ringgit in taxes which could have been collected by the Government will have a profound impact on this country in the end," he said, adding that he believed that a lot of business bosses nationwide could end up taking their business overseas."When you destroy the pillars of the country (bosses who provide employment and pay taxes to the Government) you end up destroying the country as well in the end." As such, Wong called on the Government to withdraw the levy policy to ensure that employers in the country are not even more pressured during these trying economic times. "There must be consultation with all affected parties before a policy is implemented."Stay up-to-date by following Daily Express’s Telegram channel.
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