Small and Medium Enterprises Association of Malaysia (SAMENTA) has expressed displeasure about the lack of consultation before the announcement of the RM300 fee for the micro-credential training grant.
SAMENTA Central chairman Datuk William Ng said, despite having a communication channel with Human Resource Development Corporation (HRD Corp), the association was not called for a discussion with regard to the proposed implementation of the fee.
“We are disappointed that despite having a direct line of communication with HRD Corp, SAMENTA has not been consulted nor our view or that of any of our members, sought,” Ng said in a press statement.
As such, he noted that SAMENTA strenuously objects to the RM300 fee per employee to be imposed by HRD Corp for processing of the micro-credential training grant.
Ng said: “We urge the Minister of Human Resources, Datuk Seri M Saravanan to immediately direct HRD Corp to put the plan to impose the said fees on hold, pending further explanations from the board of HRD Corp on the rationale and financial necessity for such fees.”
At a time when a severe labour shortage is hindering the recovery and growth of Malaysian SMEs, it is imperative that SMEs upskill and reskill their employees as part of the drive towards automation and digitalisation.
According to Ng, the HRD Corp’s proposed initiative is counterproductive and limits the rights of employers to determine the training needs of their businesses and their employees.
Following amendments made to the PSMB Act in 2021, all employers, including SMEs with 10 employees and above, must contribute to HRD Corp funds, purportedly to support the skills development of Malaysian employees.
An SME with 10 employees, paying an average of RM2,000 per month, would have to contribute RM2,400 per annum to HRD Corp. This fund can then be used for training programmes to be decided by the SME.
“For example, the SME could send 3 employees to take up a course in customer service costing RM800 per person. With the new micro-credential fees kicking in, the SME would now be able to train only 2 employees, because RM600 from that fund would be paid to HRD Corp for micro-credential processing.
“The minister, HRD Corp’s CEO, and its board must answer as to how training fewer employees with the same money that rightfully belongs to the employer help in the upskilling of more Malaysians,” Ng said.
Micro-credentials are short and targeted training products, which, in vocational education and training (VET), offer more flexible ways of learning.
They also deliver in-time training to meet emerging and urgent skills needs. Micro-credentials support people to move between jobs and industries and can be used as building blocks toward full qualifications.
