Thursday 25 Apr 2024
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KUALA LUMPUR (July 27): The Ministry of Entrepreneur Development is in talks with Prime Minister Tun Dr Mahathir Mohamad over its proposal to take over government departments, agencies and statutory bodies related to entrepreneur development, said its Deputy Minister Mohamad Hatta Ramli. 

"We are in talks with the Prime Minister to take over the jurisdiction of certain government agencies such as Majlis Amanah Rakyat (Mara) and other entrepreneur development agencies," Mohamad Hatta told reporters after attending the Malaysia International Retail and Franchise Exhibition (MIRF) here today. 

At the same time, Mohamad Hatta did not rule out the possibility of the new ministry taking over several other government agencies such as Tekun Nasional, Amanah Ikhtiar Malaysia and SME Corp, as well as cooperatives. 

"The final decision will depend on the Prime Minister. We will also be waiting for some allocation to kick-start the operation of the new ministry," he said, adding that the creation of the new ministry may not necessarily require the passing of the relevant parliamentary act.

The Pakatan Harapan government, under the leadership of Prime Minister Tun Dr Mahathir Mohamad, revived the Entrepreneurs Development Ministry which was abolished by the previous Barisan Nasional administration in 2009.

Earlier, Mohamad Hatta attended a closed-door roundtable discussion with 22 Malaysian Retail Chain Association council members, led by its president Datuk Seri Garry Chua. 

During the roundtable discussion which lasted for nearly two hours, Mohamad Hatta listened to several grouses and issues raised by the MRCA, which represents over 450 retail members that command a 60% market share in the country's food and non-food retail space. 

"The deputy minister was presented with the challenges in rehiring foreign labour, and the minimum wage issue," MRCA general manager Simon Wong said to reporters.

According to Wong, the Pakatan Harapan government's proposal to raise the monthly minimum wage from around RM1,000 to RM1,500 could have a negative impact on MRCA members, most of whom being small and medium entrepreneurs and business owners.

"A proper study is needed to realign the basic workers' right and the cost of doing business. It will impact business and the MRCA will be monitoring the development of this issue closely," Wong added.

In June, Human Resources Minister M. Kulasegaran said the government will announce the outcome of the minimum wage review for the private sector by August, which is one of the Pakatan Harapan's 10 election promises.

As for the rehiring of foreign workers, Wong said MRCA is urging the government to draw a proper guideline to provide adequate labour supply to support retailers' existing operations and future business expansions.

"When our members requested for foreign workers to support their current business, they are always given different instructions that are confusing and to some extent, [this] fails to resolve the labour shortage," M. Kula said. 

"With the government going on the offensive to flush out illegal workers, and the difficulty in obtaining new labour supply, business operations could be disrupted," he added.

Earlier this month, the Immigration Department launched Ops Mega 3.0 to reduce the number of illegal workers in the country, which is currently estimated at two million. 

"The takeaway from the roundtable discussion is very good, as the deputy minister got a feel of what is happening on the retail ground," he added. 

Going forward, Wong said the ministry will look beyond retailers to discuss with industry players across the value chain within the small and medium enterprises.

"The new ministry will now seek the views from chambers of commerce, manufacturers, vendors and various other associations to further enhance entrepreneur development in the country," he said. 

As for the MIRF, a three-day exhibition by local retailers and selected franchisors from July 26 to July 28, Wong hopes the business event will generate RM75 million in gross revenue. 

"This is the third year the MRCA is organising the MIRF. In 2016, the event garnered RM60 million in gross revenue, and in 2017, the value rose to RM65 million," Wong added. 

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