MALAYSIA EXTENDS DEFERRAL OF 80:20 EMPLOYMENT RATIO RULE FOR MANUFACTURING SECTOR.

The Ministry of Investment, Trade and Industry (MITI) has extended the deferral of the 80:20 employment ratio requirement for the manufacturing sector.  In a statement, MITI said the deferral will continue to be in effect until the multi-level levy mechanism (MTLM) is fully implemented. This will provide flexibility to the industry to adjust their workforce needs, without compromising the government's objective to reduce dependence on foreign workers. The government is continuously encouraging the manufacturing sector to adopt automation and technology in line with the Madani government’s aspirations for digitalisation and the New Industrial Master Plan.

The 80:20 policy refers to the employment condition that mandates a ratio of 80% local workers and 20% foreign workers in the manufacturing sector.