Use RM4 billion levy collection to train locals, not as govt revenue, says MEF
Malaysian Employers Federation (MEF) executive director Datuk Shamsuddin Bardan says currently revenue from levy is placed under the government's consolidated account.
SHAH ALAM - Employers say the almost RM4 billion levy collected per year from employers to hire foreign workers should be ploughed back to the employers to upskill and train local workers, and not parked under government revenue.
Malaysian Employers Federation (MEF) executive director Datuk Shamsuddin Bardan said currently it is placed under the government's consolidated fund.
"This levy which employers pay should be used to upskill or reskill our own people and assist the industry to mechanise and automate the industry," he said during Sinar Daily's live Wacana titled "Addressing Malaysia's Labour Shortage".
Others present were Subang MP Wong Chen, North-South Initiative Executive Director Adrian Pereira and Our Journey Director Sumitha Shaanthinni Kishna.
He said in the long run locals would be able to improve productivity, processes and move into higher-skill jobs.
"It is also possible for the number foreign workers in the country will be kept at a minimum level," he said, referring to automation over the years.
According to the home ministry's website, employers pay levy of RM1,850 for each foreign worker at the manufacturing sector, construction (RM1,850), plantation (RM640), agriculture (RM640), mining and quarry (RM1,850) and services (RM1,850).
Skilled workforce below 30 per cent
Shamsuddin further said Malaysia needs to urgently upskill its workforce as its skilled workforce is below 30 per cent.
In developed countries, 50 percent of the workforce is considered a skilled workforce.
"Of course, we aspire to go up 35 percent or 40 percent but that is a long way to reach," he said.
One way of speeding the process is by government offering certified skills where workers are certified to be at levels 2,3 or 4.
"There is a need to link wages with the skill level or workers will get frustrated," he said.
