Small and Medium Enterprises Association of Malaysia (SAMENTA) has strenuously objected to the RM 300 per employee to be imposed by HRD Corp for processing of microcredential training grant.
SAMENTA have urged the Minister of Human Resources, Datuk Seri M Saravanan to immediately direct HRD Corp to put the plan to impose the said fees on hold, pending further explanations from the Board of HRD Corp on the rationale and financial necessity for such fees.
Following amendments made to the PSMB Act in 2021, all employers, including SMEs with 10 employees and above must contribute to HRD Corp funds, purportedly to support the skills development of Malaysian employees.
An SME with 10 employees, paying an average of RM 2,000 per month, would have to contribute RM 2,400 per annum to HRD Corp. These funds can then be used for training programmes to be decided by the SME. For example, the SME could send 3 employees to take up a course in customer service costing RM 800 per person. With the new microcredential fees kicking in, the SME would now be able to train only 2 employees, because RM 600 from that fund would be paid to HRD Corp for microcredential.
The Minister, HRD Corp’s CEO and its Board must answer as to how training fewer employees with the same money that rightfully belongs to the employer helps in the upskilling of more Malaysians.
At a time when severe labour shortage is hindering the recovery and growth of SMEs, it is imperative that SMEs upskill and reskill employees as part of the drive toward automation and digitalisation. This new HRC Corp initiative is counterproductive and limits the rights of employers to determine the training needs of their businesses and their employees.
