Kuala Lumpur, February 3, 2025 – In a press statement, President of MyBHA, Dr Sri Ganesh Michiel has said that the Malaysia Budget and Business Hotel Association (MyBHA) has expressed support for the government’s decision to reduce the Employees Provident Fund (EPF) contribution rate to 2% for foreign workers. This move is a positive step towards enhancing the financial resilience of local businesses, especially in the hospitality sector, amid rising operational costs.
While MyBHA applauds this initiative, the association stresses the need for stronger enforcement to address the growing issue of non-compliant short-term rental accommodation (STRA) providers. These businesses often employ foreign workers without adhering to labor laws and fail to comply with required safety regulations, which creates an uneven playing field within the hospitality sector.
STRA providers bypass essential legal obligations, including tax payments and compliance with safety standards, while also employing foreign workers without proper documentation or EPF contributions. As a result, licensed hotels and other legitimate service providers are at a significant disadvantage, facing unfair competition from STRA operators that benefit from lower operational costs and the ability to offer customers lower prices.
In light of this, MyBHA is calling on the government to take decisive action to:
- Enforce the Law: Take strict measures against STRA providers that employ foreign workers without following labor and safety regulations.
- Enhance Monitoring and Digitization: Use advanced technology and digital platforms to detect and track illegal accommodation operations, particularly those promoted on online platforms.
- Foster Inter-Agency Collaboration: Strengthen coordination between local authorities, the Immigration Department, and relevant agencies to ensure robust enforcement against illegal practices.
- Raise Public Awareness: Launch campaigns to educate the public on the risks and consequences of using STRA or any unregulated accommodations on the economy and personal safety.
As a dedicated voice for budget and business hotels, MyBHA remains committed to working with the government to ensure the continued growth and sustainability of the hospitality industry. The association firmly believes that addressing the challenges posed by non-compliant STRA operators will help ensure a fairer and more competitive environment that will ultimately contribute to the economy’s well-being.
MyBHA conducted a handholding Session for the Employment of Foreign Workers in the Tourism Sector at the Ministry of Tourism, Arts and Culture Malaysia Putrajaya on 03 February 2025.
