Security firms want to renegotiate deals with govt

BANGI: Security companies are demanding to renegotiate their contract agreements with the government, especially when they are owed more than RM300mil.

Security Services Association of Malaysia president Datuk Seri Mus­tapa Ali said some 600 of its member companies had yet to receive payments from various ministries and agencies for over six months.

“This is a long-standing issue and one that really burdened the companies, forcing 30% of them to close down,” he told a press conference after attending a dialogue between association members and representatives from various ministries.

“We will meet with the Attorney General’s Chambers to renegotiate the contracts soon.

“Our member companies employ to 300,000 security personnel.

“When they don’t receive their payments, the companies still have to pay their workers and make EPF and Socso payments.

“They also have to service their respective bank loans, including mounting interest payments.”

Mustapa said the association had initially planned to organise a large-scale protest including telling their security guards not to show up for work at the various ministries because of the overdue payments.

“However, as some of the ministries have settled the overdue payments, we are not going to protest.

“If things are not settled within the next few days, then we will decide on further action,” he said, adding that the Education Ministry was one of biggest clients for security companies.

Mustapa also urged the government to reduce the security licence fee from RM3,000 to RM1,000.