Latest news with #Multi-TierLevyMechanism
The Star
31-07-2025
- Business
- The Star
Labour market reforms under 13MP for competitive, sustainable ecosystem
KUALA LUMPUR: The 13th Malaysia Plan (13MP) for the period 2026 to 2030 will introduce comprehensive labour market reforms to create a more dynamic, competitive and sustainable employment ecosystem. According to the 13MP document released by the Economy Ministry on Thursday (July 31), the reforms are in line with the aspirations of the Madani Economy, focusing on increasing local workers in highly skilled jobs with competitive salaries while reducing dependence on foreign workers. The document states that the government targets a significant reduction in foreign workers to 10% of the total workforce by 2030, and further to 5% by 2035. "The government will implement the Multi-Tier Levy Mechanism (MTLM) starting 2026, which imposes different levy rates based on the level of sector dependence on foreign workers and the proceeds are channelled into the Trust Fund to promote automation and mechanisation," the document said. The conditions for issuing Temporary Work Visit Passes will also be tightened, including eligibility criteria for changing employers and sectors, barriers to doing business and setting a shorter working year limit. In line with this, local workforce participation will be enhanced through programmes such as the Academy in Industry (ADI), with priority given to matching jobs to local participants before approving the hiring of foreign workers. "Foreign worker applications will be required to go through a clearinghouse that will be established to facilitate the matching of ADI programme participants first before approval. This measure will ensure that local workers are given priority to fill vacant positions," according to the document. In terms of providing accommodation facilities, the document states the importance of providing comfortable facilities close to the workplace as an important factor in attracting local workers. "Various initiatives will be introduced to encourage employers to provide adequate accommodation facilities, while related acts and regulations will be reviewed to ensure the welfare and safety of workers are guaranteed," according to the document. The labour market reform also emphasises harmonising the wage system by empowering the National Wage Consultative Council and implementing periodic reviews of the minimum wage based on the concept of a living wage. "The role of this council will be expanded to include setting the starting salary of graduates, including Technical and Vocational Education and Training (TVET) graduates, as well as regulating the implementation of the Progressive Wage Policy (PWP)," according to the document. To improve the well-being of workers, the government will explore new mechanisms to guarantee continuous income after retirement through the separation of Employees Provident Fund (EPF) contributions into two main components, namely retirement savings and monthly pensions. "Other initiatives include the drafting of specific legislation for gig workers to guarantee their welfare including the right to work in a safe, healthy and conducive environment as well as improving protection from occupational disasters covering accidents outside working hours and not related to work," according to the document. Based on the document, the achievements of the 12MP showed, among others, that the country's labour market has improved with the unemployment rate decreasing to 3.2% in 2024, compared to 4.5% in 2020. The composition of skilled workers has increased from 29.6% in 2020 to 30.2% in 2024 and the full implementation of the PWP which began in early 2025 with a target participation of 50,000 workers. "Efforts to improve workers' salaries have successfully increased the monthly median salary and wage to RM2,602 in 2023, from RM2,076 in 2020," according to the document. Other achievements of the 12MP include the registration of 20,088 participants for the ADI programme until 2024 while the skills upskilling and reskilling programme under Pembangunan Sumber Manusia Berhad successfully trained 3,886,470 workers from 2021 to last year. - Bernama
Barnama
31-07-2025
- Business
- Barnama
13MP: Labour Market Reforms To Create More Dynamic, Competitive And Sustainable Ecosystem
KUALA LUMPUR, July 31 (Bernama) -- The 13th Malaysia Plan (13MP) for the period 2026 to 2030 introduces comprehensive labour market reforms to create a more dynamic, competitive and sustainable employment ecosystem. According to the 13MP document released by the Ministry of Economy today, the reforms are in line with the aspirations of the MADANI Economy with the main focus on increasing the participation of local workers in highly skilled jobs with competitive salaries while reducing dependence on foreign workers. The document states that the government targets a significant reduction in foreign workers to 10 per cent of the total workforce by 2030, and further to five per cent by 2035. "In this regard, the government will implement the Multi-Tier Levy Mechanism (MTLM) starting 2026 which imposes different levy rates based on the level of sector dependence on foreign workers and the proceeds are channeled into the Trust Fund to promote automation and mechanisation," the document said. The conditions for issuing Temporary Work Visit Passes will also be tightened, including eligibility criteria for changing employers and sectors, barriers to doing business and setting a shorter working year limit. In line with this, local workforce participation will be enhanced through programmes such as the Academy in Industry (ADI), with priority given to matching jobs to local participants before approving the hiring of foreign workers. "Foreign worker applications will be required to go through a clearinghouse that will be established to facilitate the matching of ADI programme participants first before approval. This measure will ensure that local workers are given priority to fill vacant positions," according to the document. In terms of providing accommodation facilities, the document states the importance of providing comfortable facilities close to the workplace as an important factor in attracting local workers. "Various initiatives will be introduced to encourage employers to provide adequate accommodation facilities, while related acts and regulations will be reviewed to ensure the welfare and safety of workers are guaranteed," according to the document.
The Sun
31-07-2025
- Business
- The Sun
13MP: Govt to cut foreign workers, elevate TVET
PETALING JAYA: The government has set a target to reduce the proportion of foreign workers in Malaysia from the current 15% to 10% by 2030, Prime Minister Datuk Seri Anwar Ibrahim announced in Parliament during the tabling of the 13th Malaysia Plan (13MP). 'To achieve this, the Multi-Tier Levy Mechanism will be more comprehensively enforced to encourage employers to shift toward automation, mechanisation, and the hiring of local workers,' he said. Anwar also outlined several initiatives to improve Malaysia's labour market, with a strong focus on strengthening Technical and Vocational Education and Training (TVET). In 2024 alone, 212,000 new students enrolled in TVET programmes. 'The TVET MADANI Programme will be enhanced to help students - including tahfiz students and huffaz - master high-income skills,' he said. To recognise advanced technical expertise, the government will introduce three new certification levels, aligning TVET qualifications with higher education standards under the Malaysian Qualifications Framework (MQF).
The Sun
31-07-2025
- Business
- The Sun
Govt to cut foreign workers, elevate TVET
PETALING JAYA: The government has set a target to reduce the proportion of foreign workers in Malaysia from the current 15% to 10% by 2030, Prime Minister Datuk Seri Anwar Ibrahim announced in Parliament during the tabling of the 13th Malaysia Plan (13MP). 'To achieve this, the Multi-Tier Levy Mechanism will be more comprehensively enforced to encourage employers to shift toward automation, mechanisation, and the hiring of local workers,' he said. Anwar also outlined several initiatives to improve Malaysia's labour market, with a strong focus on strengthening Technical and Vocational Education and Training (TVET). In 2024 alone, 212,000 new students enrolled in TVET programmes. 'The TVET MADANI Programme will be enhanced to help students - including tahfiz students and huffaz - master high-income skills,' he said. To recognise advanced technical expertise, the government will introduce three new certification levels, aligning TVET qualifications with higher education standards under the Malaysian Qualifications Framework (MQF).
Borneo Post
28-04-2025
- Business
- Borneo Post
Joint study proposed for flexible foreign worker recruitment framework
Tan Sri Soh Thian Lai – Bernama file photo KUCHING (April 28): A comprehensive joint study has been proposed to assess the feasibility of implementing the Multi-Tier Levy Mechanism (MTLM) to address foreign labour issues, said Tan Sri Soh Thian Lai. The Federation of Malaysian Manufacturing (FMM) president stated that the proposed MTLM is a crucial enabler for a more flexible and demand-driven foreign worker recruitment framework. He noted that Human Resources Minister Steven Sim acknowledged the importance of MTLM during a recent meeting between FMM and the Ministry of Human Resources (MoHR). 'During the meeting, FMM emphasised the urgency of implementing the MTLM. Minister Steven Sim proposed a comprehensive joint study between the ministry and FMM to assess its feasibility and labour market impact,' he said in a statement today. Soh highlighted that the meeting underscored the strong commitment between FMM and the minister to collaboratively strengthen the country's workforce ecosystem through comprehensive, forward-looking initiatives. He also pointed out that FMM had raised concerns about the prolonged freeze on foreign worker recruitment, which has led to critical manpower shortages due to attrition and the creation of new jobs. Soh said FMM will submit a detailed position paper presenting sectoral labour demand data and proposing a structured approach to address both short-term and long-term workforce needs. He said both FMM and the minister agreed to collaborate through a memorandum of understanding (MoU) to enhance industry exposure for students from the ministry's 33 Technical and Vocational Education and Training (TVET) institutes. Under this programme, Soh said, students will spend 60 to 70 per cent of their academic term at FMM member companies' facilities, gaining real-world, hands-on experience aligned with current industry needs. To further reinforce this effort, he said the ministry will provide a special grant to collaborate with FMM on upgrading the syllabus for Sijil Kemahiran Malaysia (SKM) Levels 4 and 5, with a focus on high-value and technology-driven sectors. To streamline job matching, Soh said FMM and the minister discussed linking the Government-Industry TVET Coordination Body (GITC) digital Job Placement Centre to the MYFutureJobs portal. Since its establishment in 2022, GITC – anchored by FMM – has continued to spearhead national-level efforts to coordinate industry skills requirements. 'Recognising the importance of worker welfare, FMM will conduct a survey among its members to review existing private insurance arrangements. 'Given that Socso already provides comprehensive inpatient and outpatient insurance, the survey aims to identify potential overlaps and explore opportunities to rationalise coverage, thus reducing healthcare costs for both employers and employees,' he said. Furthermore, Soh said FMM will raise awareness among its member companies about the Socso Housewives' Social Security Scheme (Skim Keselamatan Sosial Suri Rumah), encouraging contributions for their female employees and the wives of male staff. 'This initiative provides protection for housewives against domestic accidents, illnesses, and invalidity,' he added. Federation of Malaysian Manufacturing lead Multi-Tier Levy Mechanism
