Recalibration fee of RM1,500 per foreign worker 'exorbitant', says Rehda

• “Through the programme, the government’s aim should be to help the industries and the nation’s economy recover, so companies can offer more jobs to more workers and be profitable to pay taxes.”

KUALA LUMPUR (Feb 7): The Real Estate and Housing Developers’ Association Malaysia (Rehda) has expressed concerns over the government’s decision to maintain the recalibration fee at RM1,500 under the Labour Recalibration Programme or Program Rekalibrasi Tenaga Kerja (RTK) 2.0, saying the amount is too high for businesses.

In a press statement on Tuesday (Feb 7), Rehda said that the fee is exorbitant for businesses, as a high number of workers is utilised in a single project that adds up to a hefty sum that may not be financially viable.

This comes after Home Minister Datuk Seri Saifuddin Nasution Ismail said on Jan 27 that the recalibration fee to hire undocumented migrants in Malaysia under the RTK 2.0 will remain at RM1,500 per person.

“We believe that the fee should be kept as low as possible to encourage related businesses to take part in the programme. Otherwise, the high amount can be a deterrent,” said Rehda Malaysia president Datuk NK Tong in the statement.

“Through the programme, the government’s aim should be to help the industries and the nation’s economy recover, so companies can offer more jobs to more workers and be profitable to pay taxes.”

“The programme itself should not be used as a source of income for the government,” urged Tong.

The association added that the government should continue to assist businesses as costs increase, but commended the abolishment of documentation fees for housing loans.

“By reverting to a lower fee, any savings can be passed to potential homebuyers in terms of lower house prices, even as developers struggle to keep prices down in the face of persistent and rising inflation.”

Nevertheless, in the statement, Tong encourages employers with illegal migrant workers to join the recalibration programme to ensure workers' protection, while projects and businesses can resume without issues.

“We hope our members will adhere to this law, as reluctance to do so may affect the developments of your current projects and planned developments in the future,” said Tong.

According to the Immigration Department of Malaysia’s website, other costs under the RTK 2.0 include levies according to sectors — such as RM1,850 for the construction, manufacturing, mining, security guards and the services sectors, and RM640 for the agricultural and plantation sectors — in addition to a processing fee of RM125, a RM60 pass, and visa fees depending on the worker’s nationality.