The Malaysia Budget and Business Hotel Association (MyBHA) has expressed its support for the government’s decision to reduce the Employees Provident Fund (EPF) contribution rate for foreign workers by 2%. This move is seen as a step towards helping local businesses, especially in the hospitality industry, cope with rising operational costs while enhancing the sector’s overall resilience.
However, MyBHA has also called on the government to enforce strict measures against Short-Term Rental Accommodation (STRA) providers who often hire foreign workers without adhering to local labor laws or regulatory requirements. This loophole has led to unfair competition within the hospitality industry, particularly for licensed establishments that comply with the law and operate with full transparency.
STRA providers, who are commonly operating through online platforms, often fail to meet essential legal requirements such as tax payments and safety standards. They also employ foreign workers without valid documentation or proper EPF contributions, further widening the gap between compliant businesses and those exploiting the system. This not only puts licensed businesses at a disadvantage but also affects the country’s revenue collection and impacts the overall competitiveness of the local hospitality sector.
MyBHA is urging the government to address these issues through the following actions:
1. Strengthen Enforcement:
The government must take firm action against STRA providers who hire foreign workers without complying with labor laws and safety standards. This includes ensuring proper documentation and EPF compliance.
2. Digital Monitoring and Detection:
MyBHA encourages the use of technology and digital systems to track and detect unlicensed STRA operations, especially those promoted on online platforms. These systems can help ensure that illegal accommodations are swiftly identified and dealt with.
3. Agency Collaboration:
There should be greater collaboration between local authorities, the Immigration Department, and other related agencies to carry out coordinated operations against illegal accommodation providers and ensure the enforcement of regulations across the board.
4. Public Awareness Campaign:
An awareness campaign is necessary to educate the public about the risks associated with staying in unlicensed STRAs. Such accommodations may offer lower prices, but they come with potential safety and legal risks that could harm both individuals and the economy.
5. Ensuring Industry Fairness:
MyBHA urges the government to create a level playing field for all hospitality providers by ensuring that both licensed businesses and STRA providers follow the same set of regulations. This will encourage fair competition, transparency, and sustainability in the industry.
As a representative body for budget and business hotels in Malaysia, MyBHA is committed to working with the government to promote a sustainable and equitable growth model for the hospitality sector. The association strongly believes that through the enforcement of proper regulations and a collaborative approach, the industry can thrive and continue to contribute positively to the country’s economy.
MyBHA remains dedicated to advocating for the interests of licensed hotels, ensuring they have a fair opportunity to compete in a level playing field while contributing to Malaysia’s tourism and hospitality industry’s growth.
