The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) views the proposed revision in the employer’s Employee Provident Fund (EPF) contribution rate to 2% (from 12% proposed earlier) for non-Malaysian employees (who contribute their own portion of 2%) as reasonable, taking into account the increasing burden of high operating costs and also confronting the challenging business environment brought about by the highly disruptive impact of tariff measures by major economies.
While we are comforted that YAB Prime Minister has assured that the employer’s contribution rate will not be raised in the short-term, ACCCIM hopes that proposed amendment to the Employees’ Provident Fund Act (EPF) 1991 will institute a transparent and robust mechanism to review the EPF contribution rate, typically involves a process where the government, in consultation with relevant stakeholders, periodically assesses economic and business conditions.
ACCCIM encourages companies to take advantage of the government’s various initiatives, incentives, and grants to support their transition towards automation and digitalization. By adopting these advancements, businesses can enhance their operations, improve efficiency, and gradually reduce reliance on low-skilled foreign labour over time.
We urge the Government to work closely with the industry stakeholders to support the SMEs in scaling up their businesses through transitional support measures such as technical assistance and financing as well as providing specific programmes that foster efficiency, productivity and innovation.
As a key bridge between the business community and the government, ACCCIM remains committed to providing constructive feedback and working collaboratively with the Government to refine policies that foster sustainable economic growth and help businesses navigate ongoing challenges in a sustainable manner.
