TRMAM Reacts to Hike in Foreign Workers Levy

The Tyre Retreading Manufacturers’ Association of Malaysia (TRMAM) has professed itself to be “shocked and appalled” by the Malaysian government’s announcement of the hike in the foreign worker levy (FW) for the manufacturing sector from RM 1,250 to RM 2,500, which the Association says has been doubled without any prior notice or consultation with the industry.

In a strongly worded statement, the Secretariat of the Association said; “We are totally surprised and disappointed by the abruptness of this announcement, given that the government has been portraying that it is an inclusive and consultative government.

“The economic slowdown is already straining the operations of the tyre retreading business in Malaysia,” the statement continued. “This is further compounded by imposition of GST, falling value of the Ringgit and the soon-to-be-implemented new minimum wages in July, 2016. Malaysia is becoming less attractive for foreign workers to work in. A shortage of workers, whether local or foreign, will have a significant and adverse effect on the tyre retreading business in particular, and the economy of the country in general.

“We are deeply concerned as the hike in FW levy would detrimentally impact the cost of doing business, which could lead to business failures and would ultimately be passed on to consumers and result in price increases. We strongly urge the government to revoke the decision on the hikes of Foreign Workers levy.”

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