Malaysia delays implementation of levy payment

An officer checks the passport of an immigrant at the Kuala Lumpur airport. (Source: AP)

Hanoi (VNA) – The Cabinet of Malaysia has agreed to a one-year delay on applying the new regulation on levy payment on foreign workers by employers.

On December 31, 2016, Deputy Prime Minister and Minister of Home Affairs Ahmad Zahid Hamidi reported since the beginning of 2017, employers in Malaysia will be responsible for paying the levy of their foreign workers.

However, employers called on the government to take a careful study before implementation.

Minister of Transport Liow Tiong Lai said the decision to delay the implementation of levy payment was made after Minister of the Prime Minister's Department Paul Low presented an overall assessment on the Employer Mandatory Commitment.

The Cabinet wanted to study an appropriate mechanism to create favourable conditions for industries in hiring foreign labourers while ensuring growth without causing social issues.

Minister Liow said Prime Minister Najib Razak agreed to review the issue himself and would discuss it with the Ministry of Home Affairs and the Ministry of Human Resources to solve the issue thoroughly.-VNA