THE Federal Government’s recent Budget 2025 announcement, mandating businesses to contribute to the Employees’ Provident Fund (EPF) for their existing foreign workers, is unreasonable, says Bagan MP and Air Putih assemblyman Lim Guan Eng.
The new requirement will start at a 2% contribution rate, eventually increasing to 11% for employees and 12-13% for employers over the next six years.
Air Putih assemblyman Lim Guan Eng expressed his reservations about the move, arguing that the mandate is unnecessary for existing foreign workers.
“Employers shouldn’t be required to make contributions for their existing foreign workers as it isn’t stipulated under current calculation clauses.
“It would be reasonable to apply the contributions for new foreign workers, as their employment terms include this provision.
“Having said that, employers must be allowed to use EPF contributions to offset fines, penalties, or losses imposed on companies due to any wrongdoing by foreign workers,” he said.
Earlier, Lim officiated the 3×3 basketball Air Putih Cup and distributed Deepavali hampers to the community at SJK (C) Shang Wu.
Also present was Air Itam assemblyman Joseph Ng.
Story by Edmund Lee
Pix by Alissala Thian