the blogging syed shahir

KUALA LUMPUR, March 10 (Bernama) — Malaysian companies will be able to save more than RM400 million in the next two years with the reduction in the contribution to the Human Resource Development Fund (HRDF) under the second economic stimulus package unveiled today, according to the Malaysian Employers Federation (MEF).

MEF executive director Shamsuddin Bardan this was something the employers had been asking the government since last year. At present, the employers pay RM1 per worker per month towards the fund. This has been reduced to 50 sen per worker.

The government should consider giving a full waiver on the retrenchment sum received by the workers, he told Bernama when commenting on the RM60-billion Second Stimulus Package tabled in the Dewan Rakyat. The package had proposed a 40 per cent waiver.

Shamsuddin said another area where the government could help was to absorb the RM300 fee per worker that was required to test the worker’s skills. He explained that Malaysian workers who had worked for many years possessed certain skills, but these skills were not certified and hence the workers lost out when it came to promotions.

So, it was important to certify the skills, he said. The Human Resources Ministry conducted such tests and it cost about RM300 per worker.

On the whole, the MEF welcomed the stimulus package as it would ease the burden of workers and employers.

The Malaysian Trades Union Congress (MTUC) said that though it welcomed the package, it was disappointed that the government did not propose a retrenchment fund.

Its president, Syed Shahir Syed Mohamud, said the fund would have benefited the 20,000 retrenched workers directly.

He also said that it was an opportune time for the government to have introduced a minimum wage of RM900 plus a cost-of-living allowance (COLA) of RM300.

Syed Shahir said he hoped that the stimulus package would be properly monitored to prevent leakages.

On the training proposed in the stimulus package, he said the training should be specific and be useful so that the trained workers could be gainfully employed.

Cuepacs, while welcoming the budget, hoped that the 50,000 contract workers now in government service would be absorbed into the permanent service.

Its president, Omar Osman, said the toll subsidy was also most welcomed as it would reduce the burden of the low-income group.

The Federation of Malaysian Consumers Associations (Fomca) praised the government for helping to lessen the burden of the ordinary people, particularly the poor, by providing subsidy for basic necessities like sugar, flour and bread.

Its chief executive officer, Mohd Yusof Abdul Rahman, said the government should carefully monitor the subsidies to prevent any abuse.

— BERNAMA