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Report
2% EPF contribution rate further marginalises foreign workers, says activist
Free Malaysia Today
Follow
2/14/2025
Glorene Das says foreign workers already face systemic discrimination despite their significant contribution to the economy.
Read More: https://www.freemalaysiatoday.com/category/nation/2025/02/16/2-epf-contribution-rate-further-marginalises-foreign-workers-says-activist/
Laporan Lanjut:https://www.freemalaysiatoday.com/category/bahasa/tempatan/2025/02/16/caruman-kwsp-2-pinggir-pekerja-asing-kata-aktivis/
Free Malaysia Today is an independent, bi-lingual news portal with a focus on Malaysian current affairs.
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Transcript
Display full video transcript
00:00
The reduction of EPF contribution rates for foreign workers from 12% to 2% raises serious
00:08
concerns about their financial security and social protection, says a labor rights activist.
00:14
The Naganita executive director, Glorinda, said the move further marginalizes foreign
00:19
workers who already face systemic discrimination despite their significant contributions to
00:24
the economy.
00:25
She also said it widens the inequality gap for a workforce struggling with low wages,
00:30
poor working conditions, and weak legal protections.
00:34
Thus said, it sends a message that despite their critical roles in industries like electronics,
00:38
palm oil, and construction, they are not entitled to the same security as Malaysian workers.
00:44
She added that the move reflects a broader pattern of exclusion, treating foreign workers
00:49
as disposable labor rather than essential contributors to Malaysia's growth.
00:54
While acknowledging that even a low 2% contribution rate sets a precedent for foreign workers'
00:59
social security, she urged the government to adopt a more meaningful rate.
01:04
Meanwhile, party socialist Malaysia Workers Bureau head MC Varanjani questioned whether
01:09
the government properly engaged the tripartite system involving employees, employers, and
01:14
the government before making its decision arguing that businesses would not suffer from
01:19
a fairer contribution rate.
01:21
Pan Yujo, FMT News.
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