{
  "id": 16062170,
  "title": "Govt defends mandatory 2% EPF contribution for foreign workers",
  "url": "https://urgent.news/2026/10/22/govt-defends-mandatory-2-epf-contribution-for-foreign-workers",
  "topic": "world",
  "section": "World",
  "published": "2026-10-22T14:57:00.000Z",
  "source": {
    "name": "Free Malaysia Today",
    "slug": "free-malaysia-today",
    "url": "https://www.freemalaysiatoday.com/category/nation/2026/10/22/govt-defends-mandatory-2-epf-contribution-for-foreign-workers"
  },
  "original_language": "en",
  "account": "The Malaysian government has maintained its stance on the mandatory 2% EPF contribution for foreign workers, asserting that this arrangement strikes a balance between providing social security for migrant laborers and accounting for the financial burdens faced by employers. Finance Minister Anwar Ibrahim emphasized that the 2% contribution, which came into effect in October 2025, is relatively modest and aligns with global practices aimed at expanding social protection to all workers, irrespective of nationality. This initiative seeks to offer basic savings for migrant workers who also contribute to Malaysia's economy, ensuring equitable access to social protection across the nation. Finance Minister Anwar, who serves as the Prime Minister, reported that 78,129 employers have begun making these mandatory contributions for 1,754,460 foreign workers, with 67,194 employers, or 86%, identified as small and medium-sized enterprises (SMEs). These SMEs typically encompass manufacturing firms with up to 200 workers or service sector companies employing 75 or fewer individuals. Anwar noted that the adoption of this policy by employers, including SMEs, signifies the government's successful implementation of the mandatory EPF contribution. He expressed openness to suggestions from various stakeholders to refine future policies and pledged ongoing monitoring of the initiative's effectiveness while engaging with the SME community to ensure that assistance reaches those who need it most. This response followed inquiries from opposition MP Jimmy Puah regarding potential reconsideration of the mandatory EPF contribution for foreign workers, with the Deputy Prime Minister, Ahmad Zahid Hamidi, previously suggesting a review of the contribution to alleviate business concerns in July.",
  "summary": "Finance minister says 78,129 employers have started making the contributions, of which 86% are SMEs, reflecting their acceptance of the policy.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "New Straits Times",
        "title": "2pc EPF contribution rate for foreign workers relatively low, says MoF",
        "url": "https://urgent.news/2026/10/22/2pc-epf-contribution-rate-for-foreign-workers-relatively-low-says-mof",
        "published": "2026-10-22T15:41:46.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}