HRDF will get right down to busi­ness, says Ku­lasegaran

The Star Malaysia - - Nation -

KUALA LUMPUR: The Hu­man Re­sources De­vel­op­ment Fund (HRDF) will get back to its core busi­ness of train­ing to up­skill the work­force to in­stil con­fi­dence of em­ploy­ers.

Hu­man Re­sources Min­is­ter M. Ku­lasegaran said the HRDF board and man­age­ment were aware of what needs to be looked into with “im­me­di­ate ur­gency”.

“In fact, sev­eral key ac­tions have al­ready been put in place such as the ap­point­ment of a new chief ex­ec­u­tive in July, res­ig­na­tion of seven board mem­bers and the sus­pen­sion of sev­eral ini­tia­tives un­der the 30% con­sol­i­dated fund.

“Oth­ers in­cluded re­struc­tur­ing the fund’s or­gan­i­sa­tion and peo­ple place­ment, and the need for due dili­gence be­fore any pay­ment is made,” he said.

Dur­ing a town­hall meet­ing with rep­re­sen­ta­tives of em­ployer as­so­ci­a­tions and HRDF reg­is­tered em­ploy­ers yes­ter­day, Ku­lasegaran also an­nounced the dis­con­tin­u­a­tion of the 30% con­sol­i­dated fund levy de­duc­tion of reg­is­tered em­ploy­ers, ef­fec­tive Thurs­day.

“Most em­ploy­ers lamented the lack of trans­parency of the con­sol­i­dated fund.

“So, af­ter de­lib­er­a­tion with the Gov­er­nance Over­sight Com­mit­tee (GOC), the HRDF board of directors and its man­age­ment, we are dis­con­tin­u­ing the levy de­duc­tion on reg­is­tered em­ploy­ers.

“The fi­nal pay­ment to­wards the con­sol­i­dated fund was up to last month,” he said.

Ku­lasegaran, who ini­ti­ated a five-mem­ber in­de­pen­dent GOC to re­view and probe the al­le­ga­tions, had ear­lier re­vealed that there were el­e­ments of fraud in the use of the fund by some man­age­ment per­son­nel.

“Th­ese went on in the past. But it has come an end,” he said, adding that the bal­ance of funds would go to­wards hu­man cap­i­tal ini­tia­tives as listed in the In­dus­trial Revo­lu­tion 4.0 blue­print, to be an­nounced to em­ploy­ers later.

Of the 1% HRDF levy de­duc­tion from com­pa­nies with more than 10 em­ploy­ees and 0.5% from busi­nesses with five to nine em­ploy­ees, 70% is claimable by com­pa­nies for train­ing pur­poses, while 30% is held un­der a con­sol­i­dated fund for com­mon use, re­gard­less of con­tri­bu­tion, for spe­cific train­ing pro­grammes de­cided by HRDF.

The levy cov­ers 63 sub-sec­tors in the ser­vices, man­u­fac­tur­ing, in­clud­ing min­ing and quarry in­dus­tries.

With the ces­sa­tion, the monthly HRDF levy de­duc­tion, which was ini­ti­ated in 2016 and gov­erned by the Pem­ban­gu­nan Sum­ber Manu­sia Ber­had Act 2001, would still be ap­pli­ca­ble on reg­is­tered em­ploy­ers, al­low­ing com­pa­nies more funds to train their work­force.

Ku­lasegaran also noted that some em­ploy­ers were un­der the im­pres­sion that their con­tri­bu­tions would not be used to train non-con­trib­u­tors.

How­ever, he said all em­ploy­ers have to play their part in train­ing a good lo­cal work­force.

“There are many small en­ter­prises with in­suf­fi­cient fund to con­trib­ute to the HRDF, and their work­force has to be trained too,” he said.

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.