Business groups express shock at KL's sudden worker-levy hike

Kuala Lumpur

MALAYSIAN businesses are urging the government to make a bigger push to legalise the estimated four million illegal workers - saying that Putrajaya could raise far more revenue through the foreign worker levy than the RM2.5 billion (S$846.4 million) it is expected to collect by raising the levy by up to 154 per cent.

Reacting to the hike which took effect on Monday, 55 business organisations issued a statement on Tuesday, expressing shock, deep concern and disappointment at the sudden levy hike; they also called for better management of foreign workers, including the elimination of illegal ones.

The organisations, including the Malaysian Employers Federation (MEF), the Chinese and Malay chambers of commerce and industry, and the Federation of Malaysian Manufacturers, hope Putrajaya will reconsider the foreign worker levy hike, and warn that…