MBAM expects RM2 bil impact on contractors from levy

KUALA LUMPUR (Jan 9): Master Builders Association Malaysia (MBAM) expects a RM2 billion per annum impact to the construction industry, in particular contractors, due to the change in foreign worker levy policy by the government.

MBAM president Foo Chek Lee said that the governments move to switch the payment of foreign worker levy from the foreign workers to the employer effective Jan 1 will result in a great financial burden to the industry.

"We have about 900,000 foreign workers for construction alone and with a levy of RM1,850 per head plus administrative costs, we expect an impact of about RM 2 billion per annum for contractors alone.

" For the whole industry, the impact would be more than RM2 billion,"he said.

Foo said that while the industry is in support of the governments efforts to enhance the management of foreign workers, MBAM is appealing to the government to rescind the levy to be paid by the employer, and the implementation of the Employer Mandatory Commitment.

"We would like to express our concern over the government making drastic unilateral decision without any engagement with our industry players, thus causing a lot of dissatisfaction and shocking surprises to the construction industry, " he said. — theedgemarkets.com