Malaysia postpones multi-tier levy system for foreign workers till January 1, 2022

The Malaysian government has postponed the multi-tier levy system for legal migrant workers until January 1, 2022, said the country's Human Resources Minister Datuk Seri M Saravanan today.

"The decision was taken at a cabinet meeting on Wednesday," said the HR minister adding that "The Covid-19 pandemic has had a negative impact on the health and economic sectors of the country."

Thousands of Malaysian citizens who became unemployed due to the economic downturn due to Covid-19 will be given priority for employment, he said.

Subsequently, foreign workers will be recruited based on proper demand in various sectors, the HR minister added.

Saravanan also said Malaysia's high dependence on foreign workers is expected to decrease as tariff rates increase in line with the dependency ceiling. "Besides, transparency and accountability of the quota system for hiring foreign workers will be ensured".

The E-quota module, which is part of the Centralised Management System (FWCMS) for foreign workers, will be used to implement the tariff system. "The module will ensure transparency in the process of determining the quota eligibility of foreign workers to employers and will be used to recruit new foreign workers from the country of origin," he further said.

Workers who became legal through re-hiring in 2016 have renewed their visas by paying the levy every year. In this process, a healthy worker is allowed to work for up to 10 years by paying a fee every year.

But now the country's immigration department is reportedly returning their passports without accepting the levy for the sixth time.

Earlier, the multi-layer levy system was suspended from January 1 to July this year.