KUALA LUMPUR (March 24): Plantation associations have voiced opposition to the inclusion of the sector within the Human Resources Development Fund (HRDF) Act, which entails having to pay for a Human Resources Development (HRD) levy.

In a joint statement, the Malaysian Estate Owners Association (MEOA), Malaysian Palm Oil Association (MPOA) and the Malayan Agricultural Producers Association (MAPA) said it was unsuitable to use the Act on the plantation industry as it is dependent on foreign workers not out of choice but out of need, and noted that the sole objective of the HRDF Act is to train Malaysian workers.

“Alternatively, MAPA, MPOA and MEOA would like to propose that employers in the plantation sector may be given the option of whether to contribute 0.5% or otherwise towards the payment of the HRD levy,” the associations instead proposed.

They added that they have agreed to seek immediate action from the Minister of Human Resources to review the order and to continue to grant the exemption the plantation sector has enjoyed under the Act.

Most of the plantation sector’s workforce still consists of predominantly unskilled workers, the associations stated.

In light of this, the associations viewed that it is not necessary for the sector to be included under the Act, which was enacted with the main objective to drive human capital development in Malaysia towards a knowledge economy.

The plantation sector has been exempted since the Act was first formally proclaimed in 1992, according to the associations. This is was done in recognition of the peculiar nature of the sector’s operations, which are self-contained — wherein every aspect of its operations from training and performance are carried out internally within the estate environment.

Additionally, the associations viewed that the nature of an estate worker's job is manual and repetitive, and not complex. They viewed that no formal training is required as On-the-Job Training (OJT) is more than adequate to gain knowledge on how to tap rubber or harvest oil palm, etc. The associations highlighted that this is the only training required.

It was highlighted that more than 90% of plantation workers are foreign nationals, with 10% being locals. The associations elaborated by saying that the local worker population is dwindling due to retirement, resignation and the reluctance to carry out manual work in plantations.

As such, the associations opined that the overriding problem confronting the plantation sector is not a shortage of skilled manpower but rather a shortage in terms of the number of manual workers required.

“The primary objective of this sector now is how to get the required number of manual workers rather than the training requirements,” the associations shared.

In a Federal Gazette signed by Human Resource Minister Datuk Seri M Saravanan dated Feb 26, the Act was amended to include the plantation sector.

The Act provides for the imposition and collection of the HRD Levy, which is used to promote training and development for employees, apprentices and trainees, as well as the establishment of the HRDF.