Latest news with #VoluntarySeparationScheme
The Sun
21-07-2025
- Business
- The Sun
Finding soft landing amid hard times
PETALING JAYA: Azman Mohamed Asmayatim, 38, was among staff of a Malay daily who accepted a Voluntary Separation Scheme (VSS) in 2018. Little did he know, the move would set him on an unexpected entrepreneurial path. 'When the opportunity to take VSS arose at my previous workplace, I didn't have much choice as there were only two photographers at the Penang bureau. One more senior colleague turned down the offer and as a result, I had to accept it. 'My company didn't offer a lump sum payment. Instead, they paid it like a salary. Then, due to financial issues, the payments were delayed. However in 2023, they finally settled the outstanding payments,' Azman said in a phone interview with theSun. Despite the setback, Azman was determined to make the most of his situation. Equipped with a degree in photography and digital studies, he had honed his graphic design skills through freelance work while in the media industry. Having a passion for business, he started a home-based printing business designing T-shirt and personalised name stickers. 'I only took on small jobs such as schoolbook name stickers. The income was enough to sustain my small family. But when the pandemic hit, my supplier shut down, which impacted my business. To make ends meet, I worked with a vehicle insurance agent shop for a year.' Later, his former employer offered his old job back to him, but he would have to relocate to Kuala Lumpur. 'With a newborn son who needed extra care due to health issues at the time, I had no choice but to decline the offer and remain in Taiping, where my family had settled.' The economic landscape was challenging post-pandemic, with limited job opportunities. But Azman found hope through the North Corridor Economic Region (NCER), which hosted several entrepreneurial programmes. Through one of these initiatives, he secured a photography gig on a project basis. But in 2023, the NCER office near his home shut down, leaving him once again struggling to find work in Taiping. 'I was already in my mid-30s then.' As he and his wife welcomed their second child, Azman made the decision to pivot. 'I knew I had to come up with a new business plan to support my growing family.' The turning point came when he chanced upon a soy milk and tofu-making class, popularly known as 'taufufa', which cost RM220. 'I learned about the class through a friend's WhatsApp post. After thinking it over for a few days, I decided to give it a try. The one-day class taught participants how to make soy milk and tofu. 'It wasn't easy at all. I had to spend a lot of time researching and developing the right consistency of tofu that I felt confident would be marketable,' he said, adding that he attended the class in October 2024 and began making tofu at home within two weeks. His first five attempts failed, the tofu was too soft, and the texture was off. But by the sixth try, he struck gold. Now, seven months into the business, Azman runs a roadside stall in Kampung Boyan, Taiping, where his brown sugar syrup is a customer favourite. 'Many of my customers prefer to have soy milk with brown sugar syrup.' Azman said although the love of photography remains close to his heart, he is now fully focused on his taufufa business, adding that he hopes to scale up his operations someday. 'I hope to supply soy milk and taufufa to other businesses in the district. 'Although my income is a bit lower than what I used to make, I am happy.'
Express Tribune
17-07-2025
- Business
- Express Tribune
Govt offloads another white elephant
Listen to article The government on Wednesday reaffirmed its decision to close the lossmaking Utility Stores Corporation from the end of this month and constituted a panel to consider giving a golden handshake to 11,421 employees that may cost it over Rs29 billion. It was not clear whether the government would give the severance package to all 11,421 employees or limit it to regular 5,217 employees. The discussions took place during a meeting of a committee constituted by the Prime Minister to oversee the closure and privatization of the Utility Stores Corporation (USC). Finance Minister Muhammad Aurangzeb chaired the meeting, which was attended by other cabinet members. The committee has been tasked with ensuring a smooth and transparent closure process, formulating a suitable VSS for USC employees, and recommending a structured timeline for privatisation, said the Ministry of Finance. The finance ministry said that the committee reviewed the progress made in the light of the tasks assigned to it and held detailed deliberations on the way forward. "It was reaffirmed that, in accordance with the government's directives, all operations of USC will be closed by July 31, 2025," according to the Ministry of Finance. The committee discussed at length the formulation of a fair and financially viable Voluntary Separation Scheme (VSS) for the USC employees, it added. Trading entities like USC struggled with high liabilities, ineffective subsidy utilisation, and operational inefficiencies, according to the SOEs performance report that the Ministry of Finance released last week. It added that dependence on delayed government subsidies creates cash flow crisis, while poor inventory management worsens fiscal risks The Finance Ministry report stated that the USC lost Rs6.1 billion at the operating level during July-December period of last fiscal year and it was riddled with finance costs, adding to the burden due to compounding operational losses. The USC model is subsidy-driven rather than market and cumulative losses stood at Rs15.9 billion as of December last year, according to the Finance Ministry. It added that the balance sheet revealed a weak equity of just Rs1.8 billion, heavily overshadowed by current liabilities of Rs50.7 billion, reflecting solvency risks and negative working capital. According to the official documents, there were a total 11,421 employees of the USC, including 5,217 regular employees. The total cost of the golden handshake is estimated at Rs29.2 billion, including Rs22.8 billion for the regular employees. However, these figures are not final and the cost of the severance package will be determined by another committee. The details showed that the regular employees having over 20 years association with the USC would get two running basic pays of the completed years while those having less than 20 years of experience will get either three running basic pay of completed years or 125% of the basic pay of the remaining months, whichever is higher. The regular employees will also get terminal dues and house rents. There are 3,319 contractual employees who are proposed to receive two running basic pay of completed years as compensation, which will cost Rs3.5 billion. Another 2,885 are the daily wagers who are proposed to be given two salaries of the completed years that will cost Rs2.9 billion. The entity has 21 properties and it also faces a major issue of non-payments of promised subsidies of over Rs50 billion by the Ministry of Finance. The Finance Ministry handout stated that during the course of the meeting, the members examined various dimensions of the proposed VSS, including its projected size, potential fiscal impact, and legal and operational implications associated with its structure and rollout. The Committee recommended that the Privatization Commission be consulted regarding the optimal structuring and feasibility of privatization or alternatively asset sales linked with the USC operations. To facilitate a comprehensive analysis, the Chair constituted a sub-committee headed by the Secretary Establishment Division, stated the ministry. The committee will include representatives from the Finance Division and the Industries & Production Division to examine the legal and operational aspects, contours, size, and structure of the proposed VSS and submit its report to the main Committee by the end of the week. This will enable the Committee to consolidate its findings and finalize its report and recommendations to be submitted to the Prime Minister in line with the Terms of Reference, said the Ministry of Finance. The SOEs report stated that USC's heavy reliance on government subsidies and declining sales highlighted systemic inefficiencies. The USC reflects a structurally weak and inefficient business model that is unsustainable without continuous government subsidies. The report showed that the company's sales sharply dropped by more than 50% compared to the same period last year — showing the company's inability to retain market share or operate competitively. However, one of the reasons for drop in sales was the government's decision to wind up the entity. The report underlined that without structural reform, including privatization, supply chain digitization, direct beneficiary targeting (DBT) of subsidies, and converting to a lean wholesale model, USC will continue draining fiscal resources with no viable path to self-sustainability.
Express Tribune
16-07-2025
- Business
- Express Tribune
Utility Stores to shut down by July 31
Listen to article A high-level committee formed by the prime minister to oversee the closure and privatisation of the Utility Stores Corporation (USC) has reaffirmed that all operations of the corporation will be shut down by July 31 in accordance with government directives. The meeting, held in Islamabad on Wednesday, was chaired by Finance Minister Muhammad Aurangzeb. The committee is tasked with ensuring a smooth and transparent closure process, along with formulating a Voluntary Separation Scheme (VSS) for USC employees and recommending a structured timeline for privatisation. Read More: 6,000 Utility Stores workers to be laid off The committee reviewed the progress of its assigned tasks and held detailed discussions on the next steps. During the meeting, the members focused on developing a fair and financially viable VSS for USC employees, which would facilitate an orderly exit for workers and ease the transition. Members of the committee examined various aspects of the VSS, including its potential size, fiscal impact, and the legal and operational challenges associated with its implementation. They also evaluated the implications of the scheme's rollout and its potential effects on the workforce. In addition to the VSS, the committee recommended that the Privatisation Commission be consulted on the optimal structuring and feasibility of the privatisation process, or alternatively, the possibility of asset sales tied to USC operations. Also Read: Utility Stores employees announce nationwide protest over layoffs To facilitate a more thorough analysis, the chair has constituted a sub-committee, led by the Secretary of the Establishment Division. The sub-committee will delve into the legal and operational aspects, size, and structure of the proposed VSS and submit its findings to the main committee by the end of the week. The closure of USC, part of the government's broader privatisation plan, is set to reshape the retail landscape, though its impact on employees and consumers remains a point of ongoing concern.
The Hindu
07-07-2025
- Business
- The Hindu
Management disregards govt. directions, allege NIEIT staff
The employees of NIE Institute of Technology (NIEIT) at Koorgalli in Mysuru have alleged that the management had disregarded the directions issued by the Higher Education Department to continue their services. In a press statement, they said the Higher Education Department on June 27 directed the institution to continue the services of teaching and non-teaching staff at NIEIT, pending the final outcome of a writ petition filed in the High Court in this regard. The department's direction came after the High Court issued an interim order on June 12 in their favour, they said. Despite repeated requests for their reinstatement, the principal has blatantly refused to comply, they added. It may be mentioned that the management decided to close NIEIT at Koorgalli, which has about 95 teaching and non-teaching staff, from the ensuing year, while leasing its infrastructure on Mananthavadi Road. The employees claimed that the management assured to absorb all the permanent staff of NIEIT into NIE during the merger with service continuity, seniority, and lawful benefits, but the promises were not met. While alleging that they their entry into the NIEIT campus was barred from June 12, and that unlawful retrenchment notices were served on June 14, the aggrieved employees said that the Voluntary Separation Scheme introduced by the management also deprives them of their rightful dues. However, the management said the matter was still pending in the court.
Express Tribune
03-07-2025
- Business
- Express Tribune
4,000 USC staff to be laid off through VSS
The federal government has decided to terminate nearly 4,000 permanent employees of the Utility Stores Corporation (USC) through a Voluntary Separation Scheme (VSS) before proceeding with the corporation's privatisation. The regular employees will be transferred to the federal government's surplus pool prior to the privatisation process. According to sources, the USC Board of Directors, chaired by Federal Secretary for Industries Saif Anjum, approved the formation of a four-member committee to finalise the VSS package during a meeting. Officials from the Privatisation Commission and the Ministry of Finance were also in attendance. During the meeting, it was stated that the USC will be shut down by July 30, 2025. Earlier, in a meeting chaired by USC Managing Director Faisal Nisar on June 30, 2025, key decisions were made regarding the closure of USC operations, and instructions were issued to suspend all utility store operations nationwide from July 1, 2025. All zonal managers were directed to close accounts of utility stores and warehouses and submit reconciliation reports within a day. This decision triggered a strong backlash from employees and their representative bodies. Following protests, USC management met with corporation's officials and announced that the closure letter had been withdrawn, describing it as a misunderstanding. However, just days later, the board reconvened and reaffirmed the closure plan. It was decided that all vendors and suppliers would be notified to retrieve their goods from stores and warehouses by July 10. Additionally, rented utility store buildings will be vacated starting August 1, 2025, and notices will be issued accordingly. A two-year audit report is also expected by August, while a detailed report on USC assets and their valuations is being prepared to facilitate the privatisation process.
