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Wednesday, January 21, 2015

Problems with MyEG’s foreign workers’ permit renewal



The manufacturing sector is unhappy with the sudden introduction of the mandatory use of MyEG for renewal of their foreign workers work permit which was announced on January 2, 2015 and came into effect on January 5, 2015. The service charge of RM38 per renewal further aggravated the issue.
While having an online submission is a move in the right direction towards greater convenience, transparency and efficiency, stakeholders should have been consulted prior to the implementation and, most importantly, there should be adequate notification to allow employers to familiarise themselves with the online submission and first-time users to get the registration process completed before the implementation date.
The RM38 service charge is not justifiable given that employers are already paying a PLKS processing fee of RM125 to the Immigration Department. Instead, the cost savings to the Immigration Department from closing counter services should be passed on to employers.
The industry's concerns over MyEG's capacity, including its online system handling a spike in traffic volume and access, have become a reality. Many employers are unable to access the site or the site crashes mid-way during the renewal process. Calls to the MyEG customer service lines are either unanswered or the officers are unable to assist.
Other problems faced by employers resulting in higher costs of doing business include:
Many employers have to purchase the insurance through MyEG at comparatively higher premiums. If employers were to purchase from their insurance provider, renewal must be two months in advance of the permit expiry. The short notification period and effective date have denied employers of this option.
The system is unable to accept renewals less than seven days to the expiry of the permit. Companies have to apply for a special pass at RM100 a pass from the Immigration Department to extend the permit for 30 days and at the same time incur cost to extend all relevant insurance coverage for the 30 days.
FMM therefore strongly urges the Government to reconsider its policy decision on the online renewal process to give employers time to familiarise themselves with the system and for MyEG to iron out all teething problems. While the system is on its three month trial run as quoted by the Director General of Immigration, counters should be re-opened to accept manual submissions. The service charge should be reviewed in apportioning the sum from the existing processing fee paid to the Immigration.
*Davies Danavaindrak is vice-president of the Federation of Malaysian Manufacturers.

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