Construction, plantation, glove sector to be affected by foreign worker levy, says CIMB Research

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KUALA LUMPUR (Feb 3): The earnings of the construction, plantation and the rubber glove sectors are likely to be affected by the recent hike in foreign workers levy, according to CIMB IB Research.

In a note today, the research house said sectors like education, telco, aviation, gaming, healthcare, auto, banking, media, oil&gas, brewery and tobacco should not be affected by the levy hike.

It said My E.G. Services Bhd’s revenue collection will not be affected by the foreign worker levy rate hike.

“Maintain end-2016 KLCI target at 1,900, based on 2017 16.5x P/E,” it said.