Less attractive: Foreign workers will now see Malaysia as a less attractive destination, as the hike in the levy will be taken off their already low wages.
AN economy undergoing transformation in challenging times will always feel the pain. That is why policymakers prefer to make changes that are gradual so any impact will be more bearable. In the case of Malaysia, the announcement to hike the foreign worker levies from Feb 1 comes at a time when the economy is still coming to grips with the goods and services tax implemented from last April and the cuts or abolishment of various subsidies.
The hike was part of the 11 measures that was announced under the revised Budget 2016 whereby foreign workers’ levy will be charged according to which of two categories they come under.
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