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MEF calls for integrated system for foreign worker Perkeso registration
MEF calls for integrated system for foreign worker Perkeso registration

New Straits Times

time12 hours ago

  • Business
  • New Straits Times

MEF calls for integrated system for foreign worker Perkeso registration

KUALA LUMPUR: The Malaysian Employers Federation (MEF) has called for an integrated system to ease the registration of foreign workers under the Social Security Organisation (Perkeso). Its president, Datuk Dr Syed Hussain Syed Husman, said the lack of a seamless system had resulted in duplication of processes and added administrative burden. "Employers are required to submit similar information each to Perkeso, Immigration and the Labour Department. "A centralised, interoperable system for foreign workers verification, work permit approval and Perkeso registration will significantly reduce complexity," he said. Syed Hussain said some employers found the online portal unfriendly, with frequent downtime, complex forms and technical errors hindering timely registration and payment, especially for first-time or small employers. Syed Hussain said delays in work permit approvals and biometric clearance had also hampered timely Perkeso registration, leaving some employers flagged for non-compliance despite the issues being beyond their control. He called for a review of enforcement to ensure fairness, including safeguards for employers facing technical delays after applying for coverage. MEF said while it welcomed the extension of the social protection scheme to foreign workers, the additional cost burden — 0.5 per cent of a worker's monthly wage — would certainly affect employers, particularly in sectors with a large foreign labour pool and thin profit margins, such as plantations, construction, manufacturing and cleaning services. He recommended the government to consider financial incentives and contribution subsidies for micro, small and medium enterprises (MSMEs). "Employers also have to bear other costs, including levies, housing and transport under the Minimum Standards of Housing and Amenities Act, medical insurance and renewal fees. "Coupled with rising business costs, thin margins in sectors with capped prices or intense global competition and labour shortages reducing productivity, this makes compliance challenging," he said. Syed Hussain noted that while cost did not justify non-compliance, overlapping schemes like the Foreign Workers Compensation Scheme (FWCS) and unclear benefits were deterrents to register foreign workers. He said clearer guidelines were needed to educate employers and address confusion, such as whether refugees, asylum seekers, undocumented workers, and outsourced or subcontracted foreign workers should be registered under Perkeso. MEF also suggested more compliance programmes be carried out with amnesty elements for employers who come forward to register their workers. Perkeso group chief executive officer Datuk Seri Dr Mohammed Azman Aziz Mohammed said the organisation was working with relevant agencies to improve system integration and streamline data-sharing, including work permit and biometric information. He said clear guidelines were issued regularly to outline the registration responsibilities of principal employers and subcontractors, including joint liability provisions under the law. Perkeso also frequently engaged employers and industry associations, and was working with enforcement authorities to address issues relating to undocumented workers. It had enhanced its registration process through its ASSIST system, which was integrated with its MYFutureJobs job-seeking portal to streamline foreign worker quota approvals and social protection coverage. Azman noted that many employers had wrongly assumed that registration with FWCS alone was enough, which concurred with Syed Hussain's concern about duplication. He clarified that since Jan 1, 2019, Perkeso coverage under Act 4 has been made mandatory for foreign workers, whereas FWCS is optional. To address this confusion, Perkeso had conducted awareness campaigns, published comparison guidelines and integrated its registration into Immigration work pass processes. "Once registered under Perkeso, employers no longer need FWCS as Perkeso offers more comprehensive benefits, income replacement through monthly pensions in case of invalidity, medical care, temporary and permanent disability coverage, dependents' benefit and rehabilitation," he said.

Malaysia Employers Federation supports 13MP, calls for industry collaboration
Malaysia Employers Federation supports 13MP, calls for industry collaboration

New Straits Times

time31-07-2025

  • Business
  • New Straits Times

Malaysia Employers Federation supports 13MP, calls for industry collaboration

KUALA LUMPUR: The Malaysia Employers Federation (MEF) has welcomed the 13th Malaysia Plan (13MP), calling it a bold and inclusive framework for the nation's next development chapter. MEF president Datuk Dr Syed Hussain Syed Husman said the five-year plan's success hinges on cooperation among government agencies, Parliament, the private sector, and civil society to ensure policies deliver people-centric outcomes. He urged all Malaysians and key stakeholders to engage in constructive dialogue and support the plan's implementation as it undergoes parliamentary review. "As Malaysia positions itself for high-income and innovation-driven growth by 2030, the 13MP's integrated approach to human capital transformation is both timely and essential," he said in a statement today. "MEF supports the government's continued commitment to workforce upskilling, digital capabilities, and labour market reforms. However, MEF also urges practical alignment with industry needs and increased private sector engagement to ensure policy effectiveness." The 13MP, covering 2026 to 2030, is a key policy document with a budget of RM611 billion. It sets progressive and realistic objectives to spur economic growth, raise household incomes, and ensure inclusive development across all sectors. Syed Hussain proposed more direct fiscal incentives for companies, particularly small and medium enterprises (SMEs) and those undergoing digital transformation, that invest in upskilling talent in high-demand sectors. He also recommended co-investment models where the government matches employer contributions for critical skill areas. While MEF commends the centralisation of technical and vocational education and training (TVET) under a unified framework, Syed Hussain said that industry-led governance and performance monitoring are crucial to prevent mismatches. "Employers should be involved in curriculum design, certification, and placement guarantees. Many employers are willing to train but face constraints such as time, costs, productivity trade-offs, and regulatory complexity," he said. He added that successful implementation relies on meaningful employer participation, flexibility in delivery mechanisms, and coherent policies across ministries and agencies.

13MP talent push crucial for future economy: MEF
13MP talent push crucial for future economy: MEF

New Straits Times

time31-07-2025

  • Business
  • New Straits Times

13MP talent push crucial for future economy: MEF

KUALA LUMPUR: The 13th Malaysia Plan's (13MP) integrated approach to human capital transformation is both timely and essential as Malaysia gears towards becoming a high-income, innovation-driven economy, said Malaysian Employers Federation (MEF). MEF welcomed the plan's comprehensive approach to workforce transformation, particularly in the areas of technical and vocational education and training (TVET), lifelong learning and labour market reforms. Its president Datuk Dr Syed Hussain Syed Husman said the plan reflects a critical shift towards employer-led training and upskilling, essential for meeting the demands of digitalisation and industrial transformation. However, he said practical alignment with industry needs and greater private sector involvement are crucial to ensuring effective policy implementation. He added that more direct fiscal incentives are needed for companies that upskill in-demand talent, particularly small and medium enterprises and those undergoing digital transformation. "MEF recommends co-investment models where government matches employer contributions for critical skill areas. "While MEF commends the centralisation of TVET under a unified framework, industry-led governance and performance monitoring are vital to prevent mismatches," he said. Syed Hussani added that employers should be involved in curriculum design, certification and placement guarantees. "Many employers are willing to train but face constraints such as time, costs, productivity trade-offs and regulatory complexity," he said. Syed Hussain called for a training flexi-hours policy and the recognition of on-the-job training as formal learning pathways under HRD schemes. While efforts to enhance graduate employability are commendable, he said a significant gap still exists between academic qualifications and real-world job readiness. "MEF proposes deeper integration between universities and industry through mandatory work-integrated learning programmes," he added. While the association supports the 13MP's goal of modernising labour data systems, Syed Hussain stressed the need for real-time access to industry-specific employment trends and skills requirements, developed in close collaboration with employers. He said the five-year national development blueprint presents an ambitious and necessary recalibration of Malaysia's human capital development strategy. "MEF believes that successful implementation depends heavily on meaningful employer engagement, flexibility in delivery mechanisms and policy coherence across ministries and agencies."

Employers group praise 13MP as a bold blueprint for human capital transformation
Employers group praise 13MP as a bold blueprint for human capital transformation

The Star

time31-07-2025

  • Business
  • The Star

Employers group praise 13MP as a bold blueprint for human capital transformation

PETALING JAYA: The Malaysian Employers Federation (MEF) has welcomed the 13th Malaysia Plan (13MP) as a bold and inclusive blueprint for Malaysia's development from 2026 to 2030, particularly praising its focus on human capital transformation and inclusive growth. MEF president Datuk Dr Syed Hussain Syed Husman said the plan's emphasis on good governance, economic diversification, and people-centred outcomes was timely, given Malaysia's ambitions to become a high-income, innovation-driven nation. "The 13MP is timely and essential as Malaysia prepares for high-income and innovation-led growth. It outlines a comprehensive strategy for workforce upskilling, digital capabilities, and labour market reforms," he said in a statement on Thursday (July 31). With RM611bil allocated under the five-year plan—including RM430bil in government spending and RM181bil from GLCs, GLICs, and PPPs, Syed Hussain noted the plan's ambition and emphasised that execution must be grounded in industry realities. He welcomed the strategic focus on human resource development, skills upgrading, and labour market reforms, but stressed that effective implementation must involve close collaboration with the private sector to ensure policies are aligned with real industry needs. "The 13MP outlines a comprehensive strategy for upskilling the workforce, improving digital capabilities, and reforming labour systems. But it must go beyond policy documents. Implementation has to be practical, measurable, and driven by outcomes," he said. Syed Hussain said MEF strongly supports the plan's direction on Technical and Vocational Education and Training (TVET), particularly the consolidation of providers under a central framework to reduce duplication and address skills mismatches. He added that industry-led curriculum development, employer-institution partnerships, and apprenticeship-based learning must be core to the system. Employers, he said, should be directly involved in the design of training programmes, certification, and job placement. Syed Hussain also welcomed the plan's focus on lifelong learning, micro-credentials, and modular training, especially in high-value, digital, and green sectors. However, he urged that reskilling efforts for mid-career workers be incentivised through more accessible funding and flexibility, including training flexi-hours policies and recognition of on-the-job training as formal learning under HRD Corp schemes. On labour market reforms, MEF supported efforts to modernise employment frameworks to reduce informal work, improve job mobility, and raise productivity. "Digitalisation of labour market information systems was critical, but real-time, industry-specific data must be developed in partnership with employers to ensure accuracy and relevance." Syed Hussain noted that youth and graduate employability remained a pressing concern. "We need stronger industrial exposure and career coaching, as well as mandatory work-integrated learning programmes at the university level to better prepare graduates for the realities of the job market," he said. While commending the government's commitment to training reforms, he said employers, especially SMEs, often face constraints such as cost, time, and regulatory complexity. He proposed co-investment models where the government matches employer contributions for critical skills development, to improve uptake and outcomes. On broader reform, he said HRD Corp subsidies and grants should be rationalised to prioritise impact and make it easier for companies to access funding. He said the 13MP's success depends heavily on meaningful employer engagement, flexibility in delivery, and policy coherence across ministries and agencies. 'The 13MP is a necessary recalibration of Malaysia's human capital development strategy. As the voice of employers, MEF stands ready to collaborate with the government to ensure our workforce remains resilient, future-ready, and globally competitive," he said. He added that the plan's inclusive vision would require strong coordination across all sectors. "Its success hinges on ongoing collaboration between government, Parliament, the private sector, and civil society. We urge all stakeholders to join in constructive dialogue and complementary action as the 13MP moves through parliamentary debate and into implementation," he said.

Bosses willing to give minor offenders a chance
Bosses willing to give minor offenders a chance

The Star

time25-07-2025

  • Business
  • The Star

Bosses willing to give minor offenders a chance

PETALING JAYA: Employers are all for employing individuals previously convicted of minor offences. But they also have some proposals for the government to consider before amending the Registration of Criminals and Undesirable Persons Act 1969 (Act 7) to expunge the record of individuals convicted of non-violent or minor offences after a reasonable period. Malaysian Employers Federa­tion (MEF) president Datuk Dr Syed Hussain Syed Husman said such individuals deserve a second chance and with the right treatment and guidance, they could become assets to the nation. ALSO READ : Progressive shift towards rehabilitation 'It is our moral and social duty to help rehabilitate them into society,' he said. 'Employers are willing to give opportunities to these individuals. Nobody is perfect. 'Sometimes, due to circumstances and influence, people make mistakes.' Syed Hussain urged the government to work with the industry to train these groups. 'Making them industry-ready is important. We should use HRD Corp funds to identify and allocate resources to meet industry needs,' he said. Syed Hussain added that MEF is ready to work with the government to create such programmes and opportunities. SME Association president Dr Chin Chee Seong said the move to expunge records must not be done automatically. 'The question is not how long before the records are expunged but what kind of offences they were involved in,' he said. ALSO READ : Red tape blocks road to redemption Chin said it is also important to maintain some information even when the record is expunged so that employers know where to place their workers. For example, he said those involved in financial crime should not be placed in positions that involve money. He also proposed that an assessment period of three years be given to such employees. Based on the recommendation of employers, they should be allowed to expunge the records, Chin added. Recently, Home Minister Datuk Seri Saifuddin Nasution Ismail said the government is currently in the process of amending the Act. The Act serves as a legal authority to register individuals who have been convicted of offences listed in the First and Second Schedules of Act 7 in the criminal register. 'The proposed amendments have been agreed upon in principle by the Cabinet on May 21,' he said.

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