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Sunday, March 14, 2010

RM2mil fund to retrain SME workforce

KUALA LUMPUR: The Government has introduced yet another fund to retrain the Malaysian workforce to become highly skilled workers, this time in small and medium enterprises (SMEs), with an initial amount of RM2mil to retrain 500 workers.

Human Resource Minister Datuk Dr S. Subramaniam said the new fund, known as the 1Malaysia HRDF (Human Resource Development Fund) Skills Upgrading Fund, would assist more than 8,000 SMEs in continuous retraining and skills upgrading.

Speaking at the launch of the new fund here, Dr Subramaniam said the objectives of the fund were to provide financial assistance and opportunities for employees whose workers were registered with the ministry’s Perbadanan Sumber Manusia Berhad (PSMB).
”The aim is to upgrade their knowledge and skills in the areas of innovation, creativity and high value-added, and also to encourage SMEs to send their employees for training in certification programmes that would increase their income,” he said.

He said this would add value to the training that they undergo.

”These objectives are in line with the Government’s aspiration to develop Malaysia into a high-income economy with human capital development as the impetus for growth,” the minister said.

To be eligible for the fund, he said, employees must attend certification training programmes which were assessed and awarded by recognised bodies such as chargeman training by the Energy Commission of Malaysia, boiler training by the Department of Safety and Health as well as ICT training programmes certified by Microsoft, SAP, Sun Microsystems, Oracle and Linux vendors.

”Under this scheme, employers can claim up to 100% of the course fee while other allowable costs such as daily allowances, accommodation and transportation will be borne by the participating employers,” Dr Subramaniam said.

He said that since the allocation for the fund was limited, the number of employees entitled would be one employee per employer based on a first-come first-served basis with a target of 500 employees.

”The effectiveness of the fund will be monitored through an impact study and an additional allocation will be given if it meets its objectives,” he said.

He said his ministry, through PSMB, was continuously extending assistance to all employers in training and skills upgrading.
He said that last year, the total amount of financial assistance approved for SME employers was RM73.09mil involving 122,989 training places, representing 21.46% of the total RM340.65mil approved for all employers.

He also said that in response to the global economic crisis in 2009, the Government had reduced the rate of HRD levy from 1% to 0.5% effective April 1, 2009 to March 31, 2011 under the Second Stimulus Package.

”This reduction in the rate of levy is to assist employers to cushion the impact of the financial crisis by lowering the cost of doing business.

“Therefore, it is forecast that employers would have insufficient levy, which may slow down training and skills upgrading activities,” he said. -- Bernama 

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