KUALA LUMPUR (April 7): Twelve plantation groups today voiced their opposition to the government’s decision to order the plantation sector to contribute 1% towards the Human Resources Development Fund (HRDF) Levy.

In a joint statement today, they stressed the importance of inclusive and effective engagement with the relevant stakeholders of the plantation sector on this matter.

“Such engagements will constructively facilitate towards an open and transparent platform to review the additional levy made under the expansion of the compulsory HRDF Order 2021. In doing so, this will be testimony to the government’s objective to attain win-win propositions in inclusive partnership with the private sectors, towards reviving the Malaysian economy in post-pandemic recovery period,” they said.

The 12 associations are Malaysian Palm Oil Association (MPOA),  Malaysian Estate Owners’ Association (MEOA), Malayan Agricultural Producers Association (MAPA),  Malaysian Employers’ Federation (MEF),  Sarawak Oil Palm Plantation Owners Association (SOPPOA), Palm Oil Millers Association (POMA), Palm Oil Refiners Association of Malaysia (PORAM),  Malaysian Oleochemical Manufacturers (MOMG),  Malayan Edible Oil Manufacturers’ Association (MEOMA), Malaysian Biodiesel Association (MBA), Incorporated Society of Planters (ISP) and Sabah Employers Consultative Association (SECA).

The associations are appealing to the human resources minister to expedite and facilitate an engagement between his ministry officials and the industry representatives towards formulating win-win propositions pertaining to the plantation sector’s contribution to the HRDF levy.

They have proposed a contribution waiver for at least another 12 months to allow for engagements between the industry and government.

They also feel that employers in the plantation sector should be allowed to opt out of making HRDF payments, or make optional and voluntary contributions of a lower HRDF levy threshold.  

Downstream players, in particular,  should be given the option to voluntarily contribute or contribute a lower levy of 0.5%, they said.

“This is taking into consideration of slower sales and exports during this Covid-19 pandemic and companies would appreciate the extra funds be channelled towards covering their business overheads. The utilisation of training funds will be much lower during this period, as it is difficult to nominate employees to participate in trainings, particularly those related to technical or skills-based, which would be more effective to be carried out physically,” they said.

The associations also want the HRDF to work closely with relevant associations in drawing up and structuring training programmes that can be more relevant and effective for the eventual contributors.

They said if the training programmes are deemed to be effective and useful, more employers in the sector would be encouraged to participate.

The associations also appealed to the plantation industries and commodities minister to recognise and appreciate the plight of the industry under his care, and take up the matter directly with the human resources ministry.

Human Resources Minister Datuk Seri M Saravanan signed a federal gazette to include the plantation industry in the HRDF Act in February.