“Training fee: Does HRDF take employer groups for dullards?”

Letter to Editor   

I REFER to the letter “An embarrassing shut out of qualified reps on HR Development Corp’s Board by disappointed MNC HR Director of Penang (Focus Malaysia, 15 July 2022).  

I agree with the author completely. 

Firstly, allow me to draw your attention to the following – the HRDF Act 2001 clearly states that the HRD Corp’s (HRDC) Board shall consist of 10 employers’ representative; three persons representing the Government and public sector agencies responsible for manpower development, one representative each from the Finance Ministry (MoF) and Human Resources Ministry (MOHR) and the CEO.  

In addition, the Minister in charge may appoint no more than two persons to the Board. 

Well, what do we have here – without going into details and naming any member(s), the current composition of the board does not match the provisions of the said law.  

Secondly, when we talk about employers’ representatives, it would be common sense to expect appointment of members who represent large organisations with large membership, rather than the existing, somewhat bizarre situation where some small businesses and entities with equally small number of employees are somehow nominated in.  

Common sense it seems, is not so common in this case. 

Then, we have the odd absence of foreign chambers of commerce operating in Malaysia as part of the Board. They are not represented at all.  It baffles me that they have been knowingly left out when our Malaysian Industrial Development Authority (MIDA) has and is aggressively wooing foreign direct investments (FDIs) for the longest time.  

Additionally, a federal agency like MIDA is spending hundreds of millions of ringgit annually to maintain their offices and presence in 12 regions and 20 countries to promote bilateral trade and strengthen our nation’s commercial appeal. Foreign companies in Malaysia employ hundreds of thousands of Malaysians.  

Are they not important, competent and relevant enough to be included in the Board? 

Investors are watching closely. The recent exodus and relocation of some big name MNCs is just tip of the iceberg. If the Government and HRDC continues down this slippery slope, it will reach a point where the country will be forsaken by the wider investing community and we would be left to rue what could have been. Meddling in what is shamelessly touted as free enterprise and free market but acting contrarily will definitely transform what was once a fertile multi-industry utopia into a less than desirable investment destination. 

 Toll collector?  

Granted, the Government and HRDC have legislative clout, but lest they forget, investors are free to put their money where they can do business predictably and sustainably. As far as Malaysia is concerned at the moment, particularly regarding HRDC and its recent action, it looks very much out of place and impacts FDIs tremendously.  

Hence, what is HRDC’s compelling value add then, other than the usual skimpy regulatory oversight and rubber- stamping actions?    

Forget about public-private partnership if they are going to just shaft employers through dubious means and the Government has the cheek to lament why companies are leaving our country and setting up bases in neighbouring countries.     

For a federal agency like HRDC, it is really behaving like an embarrassing toll collector! The idea of introducing the HRDC micro-credential (MC) initiative simply demonstrates lack of foresight, wanton invention and flimsy justification and is just a self-entitled exercise without linking syllabus and credentials to the institutions that will eventually validate the MC and issue certifications.  

Bollocks! HRDC expects employers to blindly accept and agree to the MC initiative without, in the first place, doing its homework including a detailed study on selling this supposedly industry relevant programme as well as capturing measurable efficacy amongst its intended targets.  

As it stands, it looks, smells and barks like another fee collection, programme attendance and certificate distribution exercise spearheaded by a less than forthcoming agency.   

Good luck HRDC! – July 17, 2022

Siti Nor Rozita Mohamad is contributor to FocusM.