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Free Malaysia Today
19-05-2025
- Health
- Free Malaysia Today
Business group hits out at Fomema policy changes hurting SMEs
The Federation of Malaysian Business Associations said the decision to reject foreign workers with treatable non-communicable diseases like diabetes, hypertension and high cholesterol is unfair. PETALING JAYA : The Federation of Malaysian Business Associations (FMBA) has called on the government to intervene in policy changes by the Foreign Workers Medical Examination Monitoring Agency (Fomema), warning that they place undue financial and operational pressure on small and medium-sized enterprises (SMEs). This comes after Fomema revised its policy in December 2023, requiring a mandatory yearly health screening instead of every two years. This resulted in an increase in costs for male workers from RM190 to RM207, and from RM207 to RM217 for female workers. FMBA chairman Abdul Malik Abdullah claimed that Fomema made the changes without proper stakeholder consultation and imposed unexpected costs on SMEs that already operate on tight margins. 'The announcement of these changes came just one day before implementation, leaving many SMEs unprepared for the sudden costs and operational adjustments,' he said in a statement today. He also criticised the decision to reject foreign workers diagnosed with common but manageable non-communicable diseases like diabetes, hypertension and high cholesterol. 'NCDs are prevalent among working Malaysian adults, who continue to contribute to the productivity and growth of the nation. 'NCDs are also treatable and controllable. Countries such as the UK, Japan, Germany, India and China do not impose this requirement,' he said. The association also raised concerns over the lack of access to medical reports for both employers and foreign workers, despite footing the bill for screenings. 'Employers, having funded these screenings, should have the right to relevant health information,' Malik said. He said these new medical rules are being layered on top of other rising costs for SMEs, including a multi-tiered foreign worker levy, minimum wage hikes, EPF and Perkeso contributions, and the rollout of e-invoicing. 'FMBA calls for a halt to these practices by Fomema and a review with the relevant stakeholders on the rationale and regulatory impacts of these changes to SMEs,' he said.
New Straits Times
19-05-2025
- Health
- New Straits Times
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.
