Businesses in Malaysia have welcomed the government’s proposal to reduce contributions to the Employees Provident Fund (EPF) from 12% to 2% for foreign workers. The Associated Chinese Chambers of Commerce and Industry (ACCIM) called the move reasonable and addresses the high operating costs and tough business environment. In a statement, ACCIM said the revised rate, reduced from the initially proposed 12 per cent, takes into account the rising burden of high operating costs and the challenging business environment caused by the disruptive impact of tariff measures by major economies. The association emphasised that such a review process should involve periodic assessments of economic and business conditions in consultation with relevant stakeholders.

The government announced yesterday its plan to introduce a mandatory two per cent EPF contribution rate for foreign workers. Prime Minister Datuk Seri Anwar Ibrahim stated that the proposal would be discussed at the Cabinet this week, with the Ministry of Human Resources set to announce further details.

– Bernama

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