HRDF levy meant for contributors’ use

THE Human Resources Development Fund (HRDF) has announced that it will use 30%

of employers’ unused levy contributions to retrain retrenched workers “HRDF to retrain retrenched workers under

pilot scheme” (The Star, April 11). Since June 2015, 30% of the total levy payments to HRDF by employers has been placed in the 1Malaysia Globally Recognised Industry and Professional Certification Programme (1MGRIP).

Due to the high percentage of non-utilisation of the fund under 1MGRIP, HRDF has announced that from this month, all unused funds would be transferred into a consolidation fund which would be opened to all companies registered with HRDF and would be given out on a first-come, first served basis.

My understanding is that the levy contributed by employers to the HRDF is held in trust by HRDF for the respective companies to use to train their own employees.

If I am right, then it is wrong for HRDF to arbitrarily make the decision to transfer the unused 1MGRIP funds into a consolidated fund to be used for employees of other companies. And now it wants to transfer another 30% of the employers’ unused levy contributions into a common fund to retrain retrenched workers!

With the current difficult economic situation, HRDF should look into other options, taking into consideration the large amount of unused funds available.

Options could include suspending the levy contributions or reducing the amount from the current 1%.

I think the main reason behind the low utilisation of the fund, including 1MGRIP, is companies are very careful when they send employees for training. Even though the course fees are paid by HRDF, the time the employee is away from work is also a “cost” to the company.

Companies also have to consider the benefits of the training programmes and whether they are relevant to their business or employee’s role. Companies do not send employees for training just for the sake of training.

LEE CHENG POH

Penang