KUALA LUMPUR: MCA President Datuk Seri Dr Wee Ka Siong has called on the government to abandon its plan to require foreign workers to contribute to the Employees Provident Fund (EPF).
Wee argued that this decision contrasts sharply with the Singapore government's recent choice to exempt foreign workers from contributing to its Central Provident Fund (CPF).
He expressed concern that mandatory contributions from foreign workers would raise labor costs, which could subsequently drive up inflation.
Besides, Wee also said that the move announced by the government would possibly see the EPF yearly dividends also benefited by the foreigners.
"The question is whether dividend distributions will be given equally every year regardless of (nationality) status. Is that fair?
"Imagine if each year, when EPF performs well, foreign workers receive the same benefits as Malaysian citizens," Wee said in a Facebook post.
Besides, he said the government decision would potentially see various incentives and benefits provided by the government to EPF in order to boost the Malaysians' savings also extended to the foreign nationals.
"The Singaporean government is focused on safeguarding the interests of its citizens through CPF, whereas Malaysia is going in the opposite direction.
"Singapore wants CPF to protect the interests of its own people, not foreign nationals, yet our government seems intent on having EPF benefit foreign workers," he said.
Therefore, he suggested the government establish a separate fund exclusively for the foreign workers instead of contributing to the same fund.