Malaysia
Multi-tier levy mechanism implementation by January 2025, says HR minister
Home Resources Minister Steven Sim speaks at a press conference on the 11th committee meeting on foreign worker management at Menara Perkeso, May 20, 2024. He said the formula for the threshold of the levy is currently being studied by the ministry and relevant ministries. — Picture by Miera Zulyana

PUTRAJAYA, May 20 — The multi-tier levy mechanism (MTLM) to ensure job security for locals by limiting foreign worker hires will likely start next January 2025.

Human Resources Minister Steven Sim said the formula for the threshold of the levy is currently being studied by the ministry and relevant ministries.

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"The MTLM will likely begin next year January 2025, there are a few details that need to be put in place before it can be implemented.

"Currently, the Human Resources Ministry, Economy Ministry and a few other ministries are studying the threshold of the levy before we bring it to the Cabinet,” Sim told reporters at a press conference here.

Last September, Prime Minister Datuk Seri Anwar Ibrahim had announced that the government will implement the MTLM in the near future.

The MTLM is aimed at securing job opportunities for locals and promoting automation and mechanisation while maintaining the policy of limiting foreign workers to 15 per cent of total workforce.

In the press conference, Sim also announced that the Invalidity Scheme under the Social Security Organisation will be expanded for foreign workers.

"This is in line with the equality of treatment in terms of social security, as now, foreign workers only have Employment Injury Scheme (covered under Employees’ Social Security Act 1969).

"Our meeting today has agreed to include foreign workers under the Invalidity Scheme, whereby it covers mishaps including outside of work,” Sim said.

He cited an example whereby under the Invalidity Scheme, it will provide a RM4,500 aid for repatriation of deceased, which was previously done by Socso under its corporate social responsibility initiative.

"This if one of the significant benefits that just on this aid alone, Socso can save up to RM25.38 million,” he added.

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