Glomac Bhd has urged the government to delay the proposed implementation of Employees Provident Fund (EFP) contributions for foreign employees to 2026 to ensure the industry has sufficient time for the necessary preparation.

The company’s Group Managing Director and Chief Executive Officer Datuk Seri Fateh Iskandar Mohamed Mansor said the construction industry that depends on daily wage foreign workers will face major challenges in the short term as a result of the implementation of this policy.

“Although the government’s proposal of widening the EPF contribution base to include foreign workers is good, it has also caused concerns in various sectors and as such we call for a grace period to be granted.

“If the government proposes a start date of 2026, it will allow the industry sufficient time to prepare,” he said while suggesting the government needs to encourage increased usage of industrialised building systems (IBS) in the long term as a way to reduce dependence on foreign workers.

“To facilitate the adoption of IBS, incentives should be offered either in the form of money or other advantages such as increased plot ratio and faster approval process.

“I understand the need for foreign workers to contribute to the EPF but we need more time or an early warning,” he said.

Source: Business Today