The Labour Solidarity and Learning Resources Association (LLRC) supports the Budget speech of Prime Minister-cum-Finance Minister Anwar Ibrahim concerning the compulsory contribution of the Employees Provident Fund (EPF) for migrant workers in Malaysia.
This move is essential as it reinforces the principle of the decent work agenda and social security for all, stated in the International Labour Organization (ILO) Declaration on Social Justice for a Fair Globalisation 2008.
Adopted by all ILO member states, including Malaysia, the declaration calls on all member states to ensure a just share of the fruits of progress for all.
We contend that employers in Malaysia should provide equal EPF contributions to local and migrant workers, which means an 11% employee contribution and a 13% employer contribution.
This new policy will allow migrant workers to accumulate a significant amount of savings with good interest.
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Upon withdrawing their savings and returning to their home country, they could use the savings as retirement benefits. This will prevent migrant workers and their families from falling below the poverty line after returning to their homeland.
We beg to differ with the Malaysian Employers Federation’s contention that the new policy will increase the burden to the business community.
We urge the MEF to see the larger picture of national economic development: strengthening the social protection system and introducing a multi-tier levy system aims to produce a high skilled and high-pay workforce for an industrialised Malaysia, especially for local talent.
The announcement of the new industrial masterplan for 2030 and the influx of electronics and semiconductor investments show that the Malaysian economy has entered into a new era.
Employers should catch up with the economic momentum and should not live in the past.
Everyone in the country should welcome the new approach as a positive step to move up to the value chain, transitioning the Malaysian economy from a labour-intensive one to a capital intensive one.
Look to the future; realise a high-income country.
Gopal Kishnam Nadesan is secretary general of the Labour Solidarity and Learning Resources Association (LLRC).
AGENDA RAKYAT - Lima perkara utama
- Tegakkan maruah serta kualiti kehidupan rakyat
- Galakkan pembangunan saksama, lestari serta tangani krisis alam sekitar
- Raikan kerencaman dan keterangkuman
- Selamatkan demokrasi dan angkatkan keluhuran undang-undang
- Lawan rasuah dan kronisme
