ADVERTORIAL
Malaysia Malaysia is moving from a low- cost model to a productivity model, with the country’s share of foreign workers targeted to fall from about 15% to 10% by 2030 and to 5% by 2035. From 2026, a multi-tier levy applies, with higher charges for heavier reliance on foreign labor and lower charges for automation and local hiring. Proceeds will be channeled to a trust fund that supports mechanization and training. Technical and vocational institutes are expanding programs in engineering, digital services, and manufacturing. The move creates a pipeline of local talent that reduces dependency on imported labor.
During build phases, foreign technicians may still be needed to meet commissioning dates. In a steady state, the mix shifts to trained local teams and vendor maintenance, with automation further reducing headcount pressure. ASEAN Briefing has more details. China A groundbreaking social insurance subsidy has been introduced in Shanghai. The new policy halves employer social insurance contributions during female employees’ maternity leave. For foreign firms, such a change offers more than just cost savings; it helps to retain female talent, lowers compliance risk, and enhances ESG performance in China’s evolving labor market. In 2024, China’s total fertility rate fell to around 1.01, far below the replacement level, and Shanghai (one of the nation’s largest metropolitan areas) recorded an even lower rate of 0.72. For many women in the city, workplace pressures and the high cost of raising children continue to be significant barriers to starting or expanding families. Dezan Shira’s China Briefing breaks down the policy’s key provisions and everything employers need to know.
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ISSUE 15 GLOBAL PAYROLL MAGAZINE
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