PUTRAJAYA must drop a plan to impose a RM300 processing fee for each employee on the Human Resources Development Corporation’s (HRDC) microcredential training grants, the Small and Medium Enterprises Association Malaysia (Samenta) said today.

In a statement, Samenta chairman William Ng said Human Resources Minister M. Saravanan must direct HRDC to halt the plan pending further explanations from the board on the rationale and necessity for such a fee.

The new fee has been imposed following amendments to the Human Resources Development Fund Act in 2021, which states that all employers, including SMEs with 10 employees and above, must contribute to HRDC funds.

This fee is to support skills development of Malaysian employees.

Ng said the new HRDC initiative is counterproductive and limits the rights of employers to determine the training needs of their businesses and their employees.

He said that at a time of severe labour shortage that is hindering the recovery and growth of SMEs, it was imperative that these enterprises upskill and reskill their employees as part of the drive towards automation and digitalisation.

He pointed out that an SME with 10 employees, paying an average salary of RM2,000 per month, would have to contribute RM2,400 per annum to HRDC.

He said these funds could instead be used for training programmes the SME wants.

“For example, the SME could send three employees for a course on customer service at a cost of RM 800 per person.

“With the new microcredential fees kicking in, the SME would now be able to train only two employees, because RM600 from their funds would be paid to HRDC.”

Ng said the human resources minister and HRDC chief executive and its board must answer how training fewer employees with the same amount of money that rightfully belongs to the employer helps in the upskilling of more Malaysians.

“We are disappointed that despite having a direct line of communication with HRDC, Samenta has not been consulted nor our view or that of any of our members, sought.” – June 22, 2022.