MEF Survey: Members disapprove of 1MyGrip consolidated fund

PETALING JAYA: A survey by the Malaysian Employers Federation (MEF) has revealed that 90% of its members do not approve of the unutilised employers’ contribution to the 1MyGrip be converted into a consolidated fund.

MEF president Tan Sri Azman Shah Haron said that the survey results indicated a very strong reaction from Human Resource Development Fund (HRDF) to the setting up of a consolidated fund from the unutilised balance of their own funds.

“It is unfair to HRDF contributors. There is a lack of transparency and there are problems in training programs,” he said during a press conference today.

The unutilised fund under the 1MYGRIP  was implemented on August 1, 2015 whereby 30% of employers’ monthly 1% contributions – roughly RM86.3mil – was channelled into the 1MYGRIP account starting June 2015 to fund the training of employees of HRDF registered employers.

Azman said by deducting 30% of HRDF to put into a common pool, employers would end up having reduced funds to plan for training that is really required.

He said companies are also adopting cost-cutting measures in times of economic downturn, adding that as such, it is vital to have access to all their HRDF contributions to train their own employees.

The MEF survey was conducted in March and involved 276 participants, of which 60% of the respondents were from the manufacturing sector.
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