Implementation of the multi-tier levy mechanism for migrant workers has been delayed to next year, based on the 13th Malaysia Plan (13MP).
The government initially intended to introduce the mechanism some time this year, but human resources minister Steven Sim said in March that Putrajaya would engage all stakeholders before implementing it.
The 13MP document stated that labour reforms would be expedited to establish a more dynamic, competitive, and sustainable job market while increasing the income of Malaysians.
“Steps will be taken to reduce the dependence on foreign workers to 10% of the workforce by 2030 and 5% by 2035. The intake of foreign workers will consider the need for manpower in sectors categorised as dirty, dangerous, and difficult.
“Besides that, the multi-tier levy mechanism will be implemented in 2026,” it said.
It said this would open up job opportunities for Malaysians and allow them to upskill, paving the way for them to earn a higher income.
The multi-tier levy was supposed to be introduced under the 12th Malaysia Plan as part of efforts to reduce the percentage of foreign workers in the total workforce to below 15%.
In December, the Federation of Malaysian Manufacturing (FMM) urged Putrajaya to provide details on the implementation of the mechanism.
FMM said the details should be announced six months in advance to give industries sufficient time to adapt.
