Orgs Oppose HRD Corp’s Microcredential Fee
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According to the Small and Medium Enterprises Association of Malaysia (SAMENTA), the Human Resource Development Corporation's (HRD Corp) new RM300 per employee fee for microcredential training grants will undercut the goal of upskilling Malaysians.
The fee would heavily impact smaller businesses
Datuk William Ng, chairman of SAMENTA Central, stated recently that the cost would immediately lower the number of funds businesses have available for training with the HRD Corp from their required payments, with smaller firms being disproportionately impacted.
He said that an SME with ten employees who pay an average of RM 2,000 monthly would have to pay RM 2,400 to HRD Corp annually. The SME may then use these funds for training initiatives.
He said that, for instance, the SME could send three workers to enrol in a customer service training that costs RM800 per student. The SME can no longer train more than two employees due to the increased microcredential fees, as RM600 from that amount must be paid to HRD Corp for the credential.
According to an HRD Corp circular dated June 15, 2022, the statutory agency would start charging a fee of RM300 per trainee for almost all of its microcredential training programmes.
SAMENTA said that the new HRD Corp decision would restrict companies' ability to decide on the training needs of their company and employees at a time when labour shortages are already limiting the expansion of SMEs.
The fee would lower the number of eligible workers
The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) also opposed the implementation of a mandatory microcredential fee levied on employers for all HRD Corp claimable programmes beginning August 15, 2022.
Tan Sri Low Kian Chuan, president of the ACCCIM, hoped the government would rethink the decision to remove a mandatory fee from the training levy that employers contribute.
According to him, doing so would lower the number of workers who would be eligible for training programmes, which would go against HRD Corp's goal of promoting employee up- and re-skilling. Additionally, during a time when it is already difficult, the business sector would have to bear more expenses.
Low said the ACCCIM supports the effort since it promotes employees' lifelong learning. However, the organisation believes that not all courses should be subject to microcredential requirements in addition to an employee-only mandatory charge of RM300.
He said that obtaining microcredentials as a means of formal qualification is not something that all employees are interested in doing and should be viewed as optional rather than required.
Orgs calling for the suspension of the new policy
According to Low, numerous details still need to be clarified and require open discussion.
These include the requirement to make public the experts from the Department of Skills Development and the Malaysian Qualifications Agency (MQA) panel who certify the microcredential courses.
In a similar vein to what MQA does for its website, he added that ACCIM also expects that HRD Corp may list down the microcredential courses and post them there.
Low emphasised that it is improper for HRD Corp to implement new policies without engaging in a fruitful dialogue with the various stakeholders and business sectors.
In light of this, ACCCIM urged HRD Corp to postpone the introduction of new fees and perform the required consultations with the levy-paying companies and stakeholders.
SAMENTA also urged the human resources minister, Datuk Seri M. Saravanan, to immediately direct HRD Corp to suspend the plan to impose the said fees, pending further justifications from the Board of HRD Corp on the necessity and cost of such payments.
According to changes made to the Pembangunan Sumber Manusia Berhad (PSMB) Act in 2021, all employers must pay a contribution to the HRD Corp funds in order to assist the skill development of Malaysian employees.