THE Small and Medium Enterprises Association of Malaysia (SAMENTA) has criticised the Human Resource Development Corporation (HRDC) for its plan to introduce a micro-credential fee of RM300 per trainee per session.
The group is responding to a June 15 circular (2/2022) from HRDC which stipulated that it will charge employers a micro-credential fee of RM300 per trainee per training for almost all trainings conducted.
“We urge Human Resources Minister Datuk Seri M. Saravanan to immediately direct HRDC to put the plan to impose said fees on hold pending further explanations from the HRDC board on the rationale and financial necessity for such fees,” SAMENTA central chairperson Datuk William Ng said.
“Following amendments made to the PSMB Act in 2021, all employers, including small and medium-sized enterprises (SMEs) with 10 employees and above must contribute to HRDC funds, purportedly to support skills development of Malaysian employees.”
According to Ng, an SME with 10 employees, paying an average of RM 2,000 per month, would have to contribute RM 2,400 per annum to HRDC – funds that can instead be used for training programmes to be decided by the SME.
“For example, the SME could send three employees to take up a course in customer service costing RM800 per person. Through the imposition of the micro-credential fees, the SME would now be able to train only two employees, because RM600 from that fund would be paid to HRDC for micro-credential,” Ng noted.
He further urged Saravanan as well as HRDC’s CEO and its Board to answer as to how training less employees with the same 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 were our views – or that of any of our members – sought,” he added.
“At a time when severe labour shortage is hindering the recovery and growth of our SMEs, it is imperative that SMEs upskill and reskill our employees as part of the drive towards automation and digitalisation.
“This new HRDC initiative is counterproductive and limits the rights of employers to determine the training needs of their businesses and their employees.” – June 22, 2022
