GEORGE TOWN: For some industry players, the proposal for a multi-tiered levy system in hiring foreigners isn’t entirely good news.Penang Chinese Chamber of Commerce’s (PCCC) executive adviser Datuk Seri Choot Ewe Seng was of the view that it was not the right move as it would burden many companies.

       “Instead of introducing a new system, the government should assist the industries in getting foreign workers without the proposed tiered levy,” he said.

       Asked whether the proposal would spur these businesses to hire more Malaysians, Choot said that such companies had tried doing so but there weren’t enough locals filling up the vacancies.

       He said Malaysia still needed “cheap” labour from foreign countries to help boost the economy.

       “What we need is for the government to give us a conducive business environment for us to make more profits. When we make profits, the tax that we pay will improve the government coffers,” he said.

       North Zone Indian Hairstylists Welfare Association chairman S. Buvaneswaran said the proposed plan would not benefit most of the barbershop operators in the country.

       “For us, the system is not friendly. It will burden us more,” he said.

       StarPicks

       Fostering positive learning initiatives

       He said most workers in barbershops were recruited from India as they were skilful compared to those trained locally.

       As such, he said the proposed new levy would end up incurring more costs for these business owners.

       Although barbershops could hire Malaysians, he explained that these locals needed to be trained first.

       This would require time and would increase the cost of daily operations, he added.

       “I hope the government will continue with the existing system and help the industry by supplying foreign workers at affordable levy rates and fees,” he said.

       Federation of Malaysian Manufacturers Penang chapter chairman Datuk Lee Teong Li said the proposed system should impose a reasonable levy.

       According to him, currently the ratio 80: 20 is being practiced in hiring the workers.

       "If this multi-tiered levy system is implemented ,the ratio of 80:20 will not be the practice any more," he said

       He said if the government wanted to proceed with this new levy system, it must be made gradually.

       Multinational companies could probably follow the system but it would be difficult for local businesses and small- and medium-sized industries, he added.

       At present, he said most industries were facing a shortage of workers, hence the need to recruit foreigners.

       Lee also said that more foreign workers were needed in view of the foreign direct investments in the country now.

       When contacted, Malaysian Employers Federation president Datuk Dr Syed Hussain Syed Husman suggested that the tiered levy system impose a reasonable quantum to prevent a spike in operational costs.

       “The proposed levy will likely increase operational costs and cause disruptions in business operations. So, the levy rates should not be set at punitive rates, as this will have an impact on the cost of operations, especially on labour-intensive industries,” he said.

       The implementation should allow ample time for labour-intensive employers to adapt to the new levy fee structures.

       “The extended timeframe also enables them to invest in mechanisation and automation, reducing their dependence on foreign workers.”

       Syed Hussain also suggested providing a grace period for micro, small and medium enterprise employers to adjust more effectively, as they would require more support than larger businesses.