KUALA LUMPUR (Dec 5): The government is conducting a detailed study on the best implementation mechanism for foreign workers’ contribution to the Employees Provident Fund (EPF), said the Ministry of Finance (MOF).

The ministry said engagement sessions with various stakeholders are being implemented to ensure that the policies made are holistic by taking into account all views and inputs from the parties involved. 

"This initiative aims to improve fairness in the labour market by ensuring that social protection for all workers is in line with international standards, which are the provisions of Article 68, Convention 102 of the International Labour Organization (ILO), which is the equal right of social protection to non-citizens.

"This step is also seen to increase the competitiveness of local businesses at the global level through encouraging the transition of businesses towards automation, while also reducing dependence on foreign labour," it said in a written reply on the Parliament website on Thursday to Senator Datuk Koh Nai Kwong's question regarding the EPF mandatory contribution decision for foreign workers, which is deemed to be a burden on micro, small and medium enterprises.

The ministry said the move is also in line with the EPF's efforts in ensuring that all workers in Malaysia, regardless of nationality, have retirement savings to deal with the risk of insufficient retirement savings in old age as well as access to social protection.

Prime Minister Datuk Seri Anwar Ibrahim had during the presentation of Budget 2025 announced that the government plans to obligate all foreign workers to contribute to the EPF, and that the proposal will be implemented in phases.

Anwar said the government is committed to giving fair treatment to all workers regardless of nationality, in accordance with international standards.

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