FMM WELCOMES MOVE TO DEFER DOUBLE LEVY ON FOREIGN WORKERS

KUALA LUMPUR, May 5 (Bernama) -- The Federation of Malaysian Manufacturers
(FMM) has welcomed the government's move to defer the doubling of levy on
foreign workers in the manufacturing services and agriculture sectors.

In a statement Tuesday, FMM also said the policy and procedural changes
should be pre-announced and implemented on a gradual basis according to a set
time frame and/or in stages.

"The government should consider a gradual increase over time and in
proportion to the percentage of foreign workers employed," it said.

FMM also stated that the levy policy should be standard and across all
sectors. The recent policy proposes to double the levy for all sectors except
construction, plantation and for domestic maids.

"Every business sector faces its own difficulties. Setting different levy
rates for different sectors can be exploited.

"Foreign workers brought in officially for the lower levy sector could be
deployed illegally as contract or temporary workers, for employers in a higher
levy sector," FMM explained.

It said levies should be ploughed back to help business finance
mechanisation efforts such as investments in automation, setting up childcare
centres to attract the participation of the female labour force and in
productivity improvement measures.

FMM also said the operations of outsourcing companies should be terminated
to address indiscriminate recruitment and oversupply.
-- BERNAMA