Business group wants government to ease SMEs' burden from Fomema policy changes
KUALA LUMPUR: The Federation of Malaysian Business Associations (FMBA) has urged the government to address the challenges faced by the small and medium enterprises following policy changes by the Foreign Workers Medical Examination Monitoring Agency (Fomema).
FMBA chairman Datuk Seri Abdul Malik Abdullah said the changes were made "without adequate stakeholder consultation" and were a major shift in Malaysia's foreign worker regulations.
"These unexpected expenses posed a substantial burden on SMEs, which often operate with tight margins, especially in the era of post Covid-19, when many SMEs are still struggling to keep afloat."
In December 2023, Fomema mandated annual medical exams for foreign workers, replacing the previous biennial requirement.
Fees rose from RM190 to RM207 for male workers (an increase of 8.9 per cent) and from RM207 to RM217 for female workers (an increase of 4.8 per cent).
"The announcement of these changes came just one day before implementation, leaving many SMEs unprepared for the sudden costs and operational adjustments required."
Malik said the new policy increased administrative workload of SMEs and was particularly challenging for smaller businesses with limited human resource capabilities.
He said Fomema also deemed foreign workers with "uncontrolled non-communicable diseases (NCDs)" as an unsuitable for employment.
"NCDs like hypertension, diabetes and high cholesterol are prevalent among working Malaysian adults, who contribute to the productivity and growth of the nation.
"NCDs are also treatable and controllable. Countries such as the United Kingdom, Japan, Germany, India and China do not impose this requirement."
Malik said FMBA had raised their concerns with the Health, Home, and Investment, Trade and Industry Ministries.
"Currently, employers and foreign workers lack access to medical records from screenings, which should be provided to both parties.
"Employers, having funded these screenings, should have rights to relevant health information.
"In this regard, FMBA recommends that a copy of the medical examination report be prepared and provided to the employer."
Malik said the examination costs were compounded by other recent policies, including a multi-tiered foreign worker levy, higher minimum wage, mandatory Employee Provident Fund contributions and Employment Injury Scheme and Invalidity Scheme under the Social Security Organisation.
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