Page 100 - BPAReport

APPENDIX III

Summary of the Multi-Tier Levy System

1. The Multi-Tier Levy System (MTLS) will be applied in the six approved economic
sectors and subsectors in which foreign workers may be employed. These are the economic
sectors covering: Agriculture, Plantation, Manufacturing, Mining & Quarrying, Construction
and Services. For the Services sector, based on current policies, only the sub-sectors set out in
Box A are authorized to employ foreign workers.

Box A: Approved Subsectors within the Services Sector

Retail & Wholesale Trades*
Restaurants
Hotels
Cleaning and Sanitation
Cargo Handling (Ports , Airports & Warehouses *)
Metal, Scrap and Used Items Trades*
Textile Trades*
Welfare Homes*
Theme Parks
Resort Islands
Dobby*
Goldsmiths*
Barbering*
Reflexology
Spas
Golf Caddies (only men allowed)

* Denotes that as at January 2019 this services subsector is frozen for new admissions of

foreign workers

2. A Cabinet Committee decision in February 2017 directed MOHR to develop the
MTLS. The application of the MTLS was also contemplated in Strategy 8: Labour Market of
the 11th Malaysia Plan.

Objectives of the Multi-Tier Levy System

3. The overall objective is to create a better system for reducing reliance on and
regulating the amount of foreign workers employed in Malaysia. For this purpose, a new
mechanism which combines the utilization of a quantitative method as well as a pricing
structure to regulate and manage the employment of foreign workers would need to be
designed.

Main elements of MTLS

4. MOHR has studied and benchmarked the experience of several countries operating a
foreign workers management system (Singapore, Hong Kong, South Korea, Thailand, Taiwan

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