Daily HR News 11.2.2025

1. AI Drives Efficiency And Effectiveness, Workforce Must Be Better Prepared – Experts

Experts assert that artificial intelligence (AI) enhances workplace efficiency and productivity by complementing human tasks rather than replacing them. They emphasize the importance of upskilling workers to adapt to AI integration, particularly in roles susceptible to automation, such as customer service and data entry. While AI may displace certain jobs, it is also expected to create new opportunities, underscoring the need for workforce preparedness.

Source: https://www.bernama.com/en/news.php?id=2391401

2. Embrace EU laws to remain competitive, M’sian firms told

Malaysian firms should adopt European Union regulations to stay competitive, according to experts. Compliance with EU laws, particularly in environmental and sustainability standards, is crucial for accessing European markets and meeting global expectations. Aligning with these regulations can enhance marketability and ensure long-term success in international trade.

Source: https://www.freemalaysiatoday.com/category/nation/2025/02/11/embrace-eu-laws-to-remain-competitive-msian-firms-told/

3. Foreign workers welcome EPF inclusion

Foreign workers in Malaysia have expressed mixed reactions to the government's decision to include them in the Employees Provident Fund (EPF) scheme with a 2% contribution rate. Some, like Nepalese worker Himraj Thapa, feel the rate is low compared to the initially proposed 12%, while others appreciate the move as a step toward social protection. 

Source: https://www.thestar.com.my/news/nation/2025/02/11/foreign-workers-welcome-epf-inclusion

4. Industry players raise doubts over 2% EPF rate for foreign workers

Industry leaders express concerns over Malaysia's mandatory 2% Employees Provident Fund (EPF) contribution for foreign workers. Malayan Agricultural Producers Association director Mohamad Audong highlights an estimated annual additional cost of RM275 million for the plantation sector, affecting approximately 336,000 foreign workers. He notes that since most foreign workers don't retire in Malaysia, the EPF's primary retirement purpose is undermined. Federation of Vegetable Farmers Associations president Lim Ser Kwee adds that small-scale farmers, often illiterate and unregistered as companies, will struggle with EPF registration, preferring a more straightforward levy system.

Source: https://www.thestar.com.my/news/nation/2025/02/11/industry-players-raise-doubts-over-2-epf-rate-for-foreign-workers

5. New EPF rules worry eatery owner

Hameediyah Restaurant director Muhammad Riyaaz Syed Ibrahim expressed concern over increased operational costs due to the recent minimum wage hike from RM1,500 to RM1,700 and the new mandatory 2% EPF contribution for foreign workers. With seven outlets and approximately 50 workers each, the restaurant faces significant financial strain, especially amid rising raw ingredient prices.

Source: https://www.thestar.com.my/news/nation/2025/02/11/new-epf-rules-worry-eatery-owner