Government Mulls EPF-Type Scheme for Foreign Workers
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The government is considering developing a foreign worker savings programme modelled after the Employers Provident Fund (EPF), which it thinks would also alleviate a couple of other issues.
Datuk Seri M. Saravanan, Minister of Human Resources, stated that the scheme would allow the workers to withdraw funds exclusively from their home nations.
The scheme will only last ten years
He said that the foreign worker scheme would only last ten years, unlike the EPF, which permits withdrawals following retirement.
"They can only withdraw the savings in their country of origin, so they must return to claim the money," he explained.
According to Saravanan, some foreign employees who seek employment in Malaysia choose to overstay.
"Whether they like it or not, they must return in ten years. Perhaps we will recommend that the funds be made unavailable if they are not claimed within a year," Saravanan said yesterday at the National Professors Council's 'Minda Profesor Negara' panel discussion on foreign employees.
Saravanan went on to say that this was also a measure to ensure that there were no illegal migrant workers in the nation and they would return to their home countries after ten years.
The issues with the scheme
However, he stated that the country cannot impose such contributions on workers in accordance with International Labour Organisation guidelines.
He also stated that the government did not want to burden companies by implementing the system at this time, given that the minimum wage had recently been increased, among other things.
"Perhaps it is too soon for another type of contribution at a time when the nation is facing sluggish economic conditions," he remarked.
He also stated that numerous migrant workers who came here to work have turned into employers, some even hiring other foreign workers.
Meanwhile, Saravanan stated that beginning September 1, all expatriates and migrant workers entering the country would require a stamp of clearance from the Labour Director-General.
He stated that government agencies bringing in both professional and non-professional workers would also require the Labour DG's approval.
"Now we will be able to create a single window," he added, noting that the system will allow authorities to determine the mode of entry of the foreign worker.
Special announcement of the reduction of working hours
In addition, Saravanan stated that he will make a special statement the following week regarding the change from 48 to 45 hours of work per week. He noted that he will make several announcements regarding working hours, days off, the ministry's role, enforcement agencies, and others.
A vernacular newspaper claimed that the Human Resources Ministry could postpone the implementation of shortened working hours. According to the report, which cited sources, Saravanan promised during a meeting held with industry representatives not to put the new ruling into effect on September 1.
Source: The Star