PETALING JAYA: The Malaysian Employers Federation (MEF) wants the government to address issues which have led to an increase in costs of recruiting foreign workers, in the upcoming Budget.
MEF said in a statement yesterday that the increasing cost of recruitment is due to outsourcing of services by the government, using levy as mechanism to increase the government's revenue or to reduce Malaysia's dependency on foreign workers, the expiration of Foreign Workers' Medical Examination Monitoring Agency's 15-year concession and the high cost of conducting medical inspection for foreign workers.
In its Memorandum for Budget 2016, the federation also highlighted the urgent need to arrest the escalating costs of doing business, issues related to the setting up of the Employment Insurance Scheme (EIS), issues related to the Goods and Services Tax (GST), submission of tax returns, penalties, tax on gratuities and tax relief on contributions to Employees Provident Fund and life insurance.
"MEF also proposed full tax exemption on compensation for loss of employment and tax incentive for internship, retirees and tax exemptions for retirees who choose to remain in employment," it said.
It made several recommendations including the proposed EIS be discarded, national minimum wages to be linked to skills level or certification, downward revision of the GST rate and flexibility in hiring and firing.
It also called for a stable economic and political situation, improvements in corruption index and the reactivation of the National Labour Advisory Council.
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