KUALA LUMPUR, Dec 4 (Bernama) -- Bursa Malaysia rallied to close broadly higher on Wednesday amid strong buying interests mainly in utility and technology stocks, with the benchmark index gaining 0.44 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 7.13 points to 1,614.09 from Tuesday’s close of 1,606.96. The index opened marginally higher at 1,606.97 and moved between 1,606.53 and 1,616.03 throughout the day. Advancers thumped decliners 727 to 381 on the broader market, with 522 counters unchanged, 781 untraded and 10 suspended. Turnover advanced to 3.60 billion units valued at RM3.30 billion versus 3.32 billion units valued at RM3.30 billion on Tuesday.
The Malaysian International Chamber of Commerce and Industry (MICCI) has voiced concerns over the recent government decision to mandate Employees Provident Fund (EPF) contributions for foreign workers. While the move aims to improve worker welfare, MICCI warns it could bring unintended economic challenges for businesses and foreign workers alike.
Key Concerns Raised by MICCI
Impact on Businesses:
- Increased Labour Costs: Sectors like manufacturing, construction, and services heavily reliant on foreign labour face immediate cost hikes, threatening profit margins and global competitiveness.
- Investor Confidence: The lack of consultation sends mixed signals to investors, raising concerns about the stability and predictability of Malaysia’s regulatory environment.
Challenges for Foreign Workers:
- Reduced Take-Home Pay: EPF deductions could reduce disposable income, affecting their ability to remit money home or cover living expenses.
- Administrative Hurdles: Foreign workers may face complex processes in accessing EPF funds when leaving Malaysia, creating further financial strain.
Governance Issues:
- Lack of Industry Engagement: MICCI criticized the absence of consultation with stakeholders, calling for a collaborative approach to ensure policies are balanced and sustainable.
Call for Reassessment
MICCI urges the government to:
- Revisit the policy’s rollout timeline.
- Engage with stakeholders, including employers, industry leaders, and worker representatives.
Broader Implications
- Businesses: Risk of reduced cost efficiency and increased financial strain in foreign-labour-dependent sectors.
- Foreign Workers: Diminished ability to meet immediate financial needs, despite the long-term benefits of EPF savings.
- Investors: Concerns over Malaysia’s business-friendly reputation and policy consistency.
MICCI’s Position
Christina Tee, MICCI President, highlighted the need for dialogue and consultation, stating, “Balanced policies require active input from all parties to ensure they are impactful and viable.”
The chamber stresses that a collaborative approach is essential to protect economic growth and support both businesses and foreign workers, while maintaining Malaysia’s competitiveness in the global market.
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