KUALA LUMPUR (Dec 17): 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 gives flexibility to the industry to adjust their workforce needs more flexibly, without compromising the government’s objective to reduce dependence on foreign workers. The government is continuously encouraging the manufacturing sector to switch to automation and technology, in line with the aspirations of CIVIL Malaysia and the New Industrial Master Plan (NIMP 2030),” it said in a statement in Monday (Dec 16).

During the presentation of Budget 2025, Prime Minister Datuk Seri Anwar Ibrahim had informed that the government will implement the MTLM in early 2025, to encourage automation and reduce dependence on foreign workers in stages.

For the manufacturing sector, MTLM will take over the 80:20 policy stipulated in the terms of the manufacturer’s licence.

The government also announced that the levy collected will be channelled back to the industry to increase the use of technology and automation, increase productivity, and reduce the dependence of foreign workers, which will contribute to the increase Malaysia’s competitiveness at the global level.

However, taking into account various factors and feedback from the sector-industrial sector, the compliance with the 80:20 policy will be deffered until the MTLM is fully implemented.