Levy payment period shortened by 50% amid quick compliance from employers
The duration of foreign worker recruitment applications in Malaysia will be reduced by nearly half, as the government there aims for efficiency in managing foreign workers.
Bernama reported on Tuesday that the length for foreign worker recruitment applications will be cut down to 15 months and 23 days.
This is 46% lower than the previous 29 months and 13 days, according to Home Minister Datuk Seri Saifuddin Nasution Ismail.
The change also includes a shorter levy payment period, which will be reduced from 30 days to 15.
"Because from our observations, 77% of employers pay the levy within 15 days, so we don't need the 30 days," Saifuddin said as quoted by Bernama.
In Malaysia, the minister explained that foreign worker recruitment begins with approval, application for quota, interviews with agencies, until their arrival at the country's entry points.
The change will take effect once the government lifts its foreign worker recruitment freeze, which has been in place since March 2023.
Malaysia previously allowed employers in five sectors to hire foreign workers under the Foreign Worker Employment Relaxation Plan.
It allowed the entry of about 50,000 foreign workers for the manufacturing, construction, plantations, agriculture, and services (restaurants only) sectors.
The move, however, was suspended in March, with the government to determine a new quota for foreign worker recruitment.
