KUALA LUMPUR: Putrajaya should reconsider its plan to implement mandatory Employees Provident Fund (EPF) contributions for foreigners, saying that Malaysian workers should be the priority, says Datuk Seri Dr Wee Ka Siong (BN-Ayer Hitam).
The MCA president expressed concerns over the welfare of Malaysian EPF contributors if this move is seen through.
"The same was practiced by Singapore, where dividends are high and its citizens are prioritised.
"That is why it closed accounts (for foreigners this year)," said Dr Wee during his speech on the Supply Bill 2025 at the Committee Stage in Parliament on Wednesday (Nov 13).
In March this year, about 300,000 Central Provident Fund (CPF) accounts set up before 2003, belonging to foreigners who are not Singaporeans nor permanent residents, were closed.
He said his CPF account, from when he worked in Singapore before, was also closed.
"It (not having EPF contributions for foreigners) does not violate international laws and Singapore already did it in the 90s, why not Malaysia?
"I hope the government looks into the matter because this will burden all of us," he said.
When tabling Budget 2025, Prime Minister Datuk Seri Anwar Ibrahim said Putrajaya has plans to make it compulsory for all foreign workers in Malaysia to contribute to the EPF.
Dr Wee also said plans to expand the scope of the sales and service tax (SST) to cover business-to-business (B2B) services could create a ripple effect leading to price increases.
"At the moment, B2B services are not being taxed and my concern is the potential price increase," he said.
He also said the Finance Ministry should reveal more details about its plans to expand the scope of SST, so that Malaysians don't get caught off-guard.
"I hope the Finance Ministry can list out what will be taxed," added Dr Wee.
Finance Minister II Datuk Seri Amir Hamzah Azizan said on Nov 12 that the government is expected to raise an additional RM5bil with expansion of the scope of SST.
According to Amir, government revenue is expected to reach RM51.7bil, up from the present forecast of RM46.7bil next year.
