Better to scrap levy move, not shelve it
Published on: Friday, January 13, 2017
Kota Kinabalu: KKCCCI does not agree to postponing implementation of levy payment on foreign workers under the Employer Mandatory Commitment (EMC) to next year because it will be just a temporary measure and not the solution.The Cabinet's decision would only temporarily ease the burden of employers, Kota Kinabalu Chinese Chamber of Commerce and Industry President Datuk Michael Lui, said.Michael said the Government should consider the heavy cost incurred by the employers and seriously review the foreign workers levy policy and remove the decision, instead.
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Furthermore, he said the authorities concerned should not put too much focus on the issue of levies to be paid by the employers and increase rate of levies and security deposits."EMC, instead, should formulate and regulate the proper mechanism of employment of foreign workers."Towards this end, Michael also stressed that KKCCCI reiterate their firm stand of urging the government to discuss with the chambers and related bodies before imposing any new policy or making major amendments so as to create a win-win situation. "It is totally not business-friendly to make the announcement without any engagement with industry players," he said.
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"We should look into a proper system of providing convenience to employers in hiring foreign workers, including policy of preventing foreign workers running away and changing sectors of work illegally". KKCCCI hoped the Government would reopen foreign worker applications to all sectors, to do away with the middlemen and to simplify the procedures for legalising foreign workers.
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On Wednesday, Transport Minister Datuk Seri Liow Tiong Lai said the Cabinet agreed to postpone to next year the implementation of levy payment on foreign workers by employers .He said the Cabinet also agreed to look into a proper system, aimed at providing convenience to industries in hiring foreign workers, and to ensure the country's economic growth.Meanwhile, developers said they will have no choice but to pass down the burgeoning cost of development to property buyers if the foreign worker levy hike announced on Dec.31 and made effective from Jan. 1 this year, is still enforced at a later date."The levy pushed to contractors will see them raising the surcharges to developers and, eventually, forcing developers to increase the selling prices of their properties. "This will further burden house buyers," said Sabah Housing and Real Estate Developers Association President Datuk Francis Goh.Goh who had repeatedly denied claims that developers are raking a huge profit from the sale of properties had pointed out in the past that developers need a stable rolling capital to keep business and projects afloat. The situation is expected to further burden first time house buyers and property hunters who are already facing a tough time owning properties due to skyrocketing prices. Earlier, the Master Builders Association Malaysia also said the construction sector may have to bear an additional cost of RM2 billion annually, if employers are made to pay the levy of their foreign workers. According to its President Foo Chek Lee, the result of this will be worsened by the increase in levy to RM1,850 per foreign worker hired from RM1,200 about a year ago. The levy move was announced by the Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi who said employers from the manufacturing, construction and services sector would be responsible to pay the levy and can no longer deduct their salaries. Foo said the move would also affect the cash flow of employers and make construction more expensive and less competitive. On another note, Goh said developers and management corporations must adopt the approach of inclusiveness when dealing with the complaints and suggestions of their tenants or unit owners. He said every single view raised by them counts, assuring that having achieved buyers' satisfaction will positively reflect on their reputation and sales. Citing sales will begin to pick up and property prices will appreciate significantly, Goh said this was why developers need to value their unit owners. Goh said this following a viral police report involving a tenant of a multi-storey residential development here falling inside a lift on Jan 5 and being hospitalized. The rumour triggered talk among netizens over the existence of developers mistreating their buyers. Towards this end, Goh said the tenant had since retracted the police report after the lift was inspected with the Occupational Safety and Health Department, as well as reviewing the closed circuit television circuit of the incident. The finding of the investigation found that the lift had reset by itself and stopped at the eleventh floor but did not drop to the seventh and later to the ground floor as alleged. Stay up-to-date by following Daily Express’s Telegram channel.
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