KUALA LUMPUR: The implementation of minimum wage and Employees Provident Fund (EPF) contributions for foreign workers can help reduce the government’s financial burden in the long run, Glomac Bhd Group managing director and chief executive officer Datuk Seri Fateh Iskandar Mohamed Mansor said.
In response to Budget 2025 after the company’s 40th annual general meeting today, Fateh Iskandar told the media that the rationale behind the government’s decisions is that similar policies are also being implemented in other countries.
“But we were hoping for more lead time. For example, starting this in 2026 would have given us time to prepare, rather than introducing it in the next two or three months,“ Fateh Iskandar said.
He said Glomac was caught by surprise and was not fully prepared for the transition but if the policy were to be effective Jan 1, 2026, it would have the time to plan accordingly.
“Construction companies like Glomac are dealing with workers who prefer daily wages. As you know, the work progresses in stages. At one stage you may need bar benders, the next you need bricklayers, and later plasterers.
“These workers are often employed on a daily wage basis despite the minimum monthly wage being in place. This makes the policy challenging for employers in the short term, particularly in terms of compliance,” he added.
