In a bid to enhance the management of foreign workers and increase local workforce participation, the Malaysian government is set to engage with small and medium enterprises (SMEs). Prime Minister Datuk Seri Anwar Ibrahim announced this initiative following a National Economic Action Council meeting where two key papers were reviewed: “Empowerment of Small and Medium Enterprises in Malaysia” and “Implementation of the Multi-Level Levy Mechanism (MTLM) for Foreign Labour.”
The objective of these papers is to bolster the scale and competitiveness of SMEs, thereby contributing to economic growth and development. Anwar highlighted the government’s commitment to addressing structural issues identified in the discussions.
One significant aspect discussed was the implementation of the MTLM, introduced in the 11th Malaysia Plan to regulate low-skilled foreign workers. The government aims to ensure that the percentage of foreign workers does not exceed 15% of the total workforce. The MTLM implementation, targeted to be completed by the end of 2024 as per the 2024 Budget, involves engaging relevant ministries and industry representatives to identify policy improvements and programmes for enhancing local workforce participation.
This proactive approach reflects the government’s commitment to fostering a conducive environment for SMEs while simultaneously managing foreign labour effectively to optimise workforce dynamics and promote economic stability.
