So now, as business owners, we have one more thing to worry about—2% mandatory EPF contribution for foreign workers.

Supposedly, this is to provide social protection.

But let’s be honest—how many foreign workers come to Malaysia thinking, “Oh, I need to save for my retirement 30 or 40 years later”?

They are here to work, earn, and send money home, not to lock their salaries in a fund they may never see.

And let’s not forget the horror stories—even Malaysians struggle to withdraw their own EPF. Now imagine what foreign workers will have to go through.

Who actually benefits?

The government says it’s about fairness. Fairness for whom? Employers get another cost to absorb.

Foreign workers get their wages deducted for something they might never touch.

The initial proposal was 12%, but thanks to business chambers’ pushback, it was reduced to 2%. A small relief, but why introduce this at all?

More costs for SMEs

Even at 2%, this is an added burden for SMEs. Many businesses are already struggling with rising costs—higher wages, levies, and compliance requirements.

Now, add EPF for foreign workers to the list.

This will not make hiring foreign workers easier. It will just increase red tape and costs. Some businesses might cut back on hiring or even pass the cost onto customers.

If the economy improves, will the 2% magically become 4%, 6%, or back to 12%?

The uncertainty itself is a business risk.

The implementation timeline is unclear, but some say it could start in January 2027. That gives us time, but why wait for something that makes no sense?

SMEs are the backbone of the economy. We need practical policies, not additional burdens.

Instead of making us force-savings foreign workers’ salaries, maybe the government should focus on real business incentives, tax reliefs, or productivity support.