Malaysia maintains mandatory 2% EPF contributions for foreign workers

Malaysia's government has reaffirmed its commitment to the mandatory 2% EPF contribution requirement for foreign workers, citing strong employer participation as evidence of policy acceptance. According to the Finance Ministry, 78,129 employers have begun making contributions under the scheme, demonstrating broad support for the initiative across the business community. Small and medium enterprises account for approximately 86% of participating employers, indicating that the policy has gained traction among Malaysia's primary employment sector. The contribution requirement, which applies to foreign workers employed in Malaysia, forms part of the government's broader social security framework. The high participation rate suggests employers view the scheme as a manageable and worthwhile investment in worker benefits, despite initial concerns about implementation costs and administrative burden.