Malaysia will introduce a multi-tier levy system next year to reduce the country’s dependence on foreign workers. Prime Minister Datuk Seri Anwar Ibrahim said revenue generated from the levy will be reinvested to facilitate automation and mechanisation in various sectors. He announced this at the tabling of the country’s 2025 Budget.
Human Resources Minister, Steven Sim later announced that the multi-tier levy mechanism (MTLM) will likely start in January 2025. He said the formula for the threshold of the levy is currently being studied by the ministry and relevant ministries. “There are a few details that need to be put in place before it can be implemented.” “Currently, the Human Resources Ministry, Economy Ministry and a few other ministries are studying the threshold of the levy before we bring it to the Cabinet,” Sim told reporters in Kuala Lumpur. The MTLM is aimed at securing job opportunities for locals and promoting automation and mechanisation while maintaining the policy of limiting foreign workers to 15 per cent of total workforce.
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