Malaysia’s foreign levy under the proposed multi-tier mechanism could see a minimum increase of between RM300 and RM500, a Home Ministry official was quoted as saying in the Public Accounts Committee’s (PAC) latest report.
The multi-tier levy mechanism (MTLM), which was proposed to begin this year, is also proposed by the government as one of several means to cover the cost incurred by the government for foreign worker management, alongside increases in visa and processing fees, the PAC heard during a proceeding.
The preliminary proposal to adjust the levy rates was raised during PAC’s proceedings on the government’s procurement of the Foreign Workers Centralised Management System (FWCMS) with Bestinet Sdn Bhd, which was raised in an earlier Auditor General’s Report.
The government incurs the costs, as based on the agreement between the government and Bestinet, the government — and not the foreign worker — pays Bestinet for every issuance of online temporary work passes (or ePass) under the FWCMS. This is up from RM100 under the previous agreement.
“Based on our engagements with the Human Resources Ministry, the proposed minimum increase under the multi-tier levy is estimated to range between RM300 and RM500,” said Hebat Hisham Mohd Yusoff, deputy divisional secretary of the Immigration Affairs Division, during the PAC proceeding.
For the ePass, Bestinet is required to submit monthly invoices for verification before payments are made by the government, according to the PAC report.
Payments are made using the Home Ministry’s existing operating allocation, which is channelled through the Immigration Department under the supervision of the Finance Ministry (MOF).
According to the Home Ministry, Bestinet has claimed a total of RM86.3 million as of May 19, 2025.
Minus the RM12.7 million paid out, the remaining RM73.5 million was claimed by Bestinet for issuances in March and April 2025.
The MOF has so far allocated RM44.6 million to cover claims for the period between November 2024 and March 2025. The Home Ministry will submit an application for additional funds to cover further payments, the PAC heard.
Aside from supporting the government’s foreign worker management costs, the MTLM’s rates are also meant to discourage foreign worker hiring in the country, which is currently capped at 2.5 million.
The government’s FWCMS contract with Bestinet ends in 2031. It was renewed in September 2024.
Source: theedgemalaysia