KUALA LUMPUR: The Federation of Malaysian Manufacturers (FMM) is against the introduction of unemployment insurance saying it views the scheme as penalising well-managed companies by adding unnecessarily to their cost of doing business when they are forced to contribute to a scheme which is to bail out delinquent companies.
In a statement, FMM said only a small number of employers defaulted in payment of retrenchment benefits even at the height of the financial crisis in 1998. “Unpaid retrenchment benefits at RM25mil was only 5% of total retrenchment benefits pyable as the vast majority of 95% was duly paid out.”