January 2024 Monthly Roundup

OSADI Wraps Up Training on Forced Labour

OSADI completed its regular training with RBA on responsible labour recruitment and forced labor.

We’ve officially paved the path forward in 2024 with an early round of RBA-guided training on forced labour, which was conducted recently by Responsible Business Alliance Senior Director, Advisory Services Mr Chee Keong Lai in the famed city of Kathmandu, Nepal.

The training on ethical recruitment standards not only shows our commitment to stand by ethical recruitment standards but also our initiative to keep abreast of current changes within Malaysia’s local and foreign manpower supply industry. This training was also a timely effort in line with the latest version 8.0 of the RBA Code of Conduct guidebook released this month, which can be accessed here.

With renewed understanding of sustainable recruitment, OSADI hopes to continually improve the industry and develop more ways to champion a greater and more diverse space for employees and employers to better meet demands in an ever-changing jobseekers’ market.

Key Alterations to FOMEMA and SST Rate

An important highlight to some changes imposed by FOMEMA and amendment to the Service Tax Act 2018.

Following FOMEMA’s latest introduction of three new options for medical tests applicable to foreign migrant workers arriving in Malaysia, the health screening company also announced that medical examinations are now mandatory for all foreign workers newly arriving in Malaysia, and for the renewal of Temporary Employment Visit Pass (PKLS) applications starting from 16th December 2023.

The now yearly medical examination is a forward-moving initiative to curb infectious diseases and protect the well-being of Malaysians as well as workers throughout their employment in the country.

While the fees for FOMEMA medical examinations have increased, Malaysia’s rate of tax under the Service Tax 2018 is also expected to inflate from 6% to 8% beginning 1st March 2024. According to the Royal Malaysian Customs Department, the changes in rate of tax will be applied to all taxable services except for F&B, telecommunications, provision of parking spaces, and logistics services. As of the time of writing, the information may still be subject to changes from time to time.