Print  |  Favourites

UNTRUE Allegations of FMM Monopolising and Regulating HRDF Pool Fund

Letter to Editor on May 17, 2016

Reference is made to the Malaysia SME April 30 – May 13 and May 14 – May 27, 2016 editions which covered the Federation of Malaysian Training Providers & TVET Association (FMTA) memorandum to the Government alleging that the FMM Institute and MEF Academy have been allowed to monopolise and regulate the 1MalaysiaGRIP fund. FMTA went on to allege that FMM is usurping the role of the HRDF and charging a 25% fee on training providers to be awarded programmes. These are all false allegations and we are further disturbed that this memorandum has been copied to the Prime Minister, the Minister of Human Resources and the Chief Secretary to the Government.

2.       FMTA’s allegations are grossly defamatory to the good standing and reputation of both the FMM and its training arm, the FMM Institute. If FMTA is a responsible association, FMTA should have first verified the information with the authorities concerned before making these unfounded statements and allegations in public. This is even more important given the seriousness of the allegations which are not based on facts and proof.

3.       The Federation of Malaysian Manufacturers (FMM) has not received nor is it monopolising HRDF funds as alleged. The FMM Institute has also NOT been appointed by the HRDF to regulate the pool fund.

4.         The FMM Institute, like other training providers, also goes through the formal process of submitting and tendering for programmes under the 1MalaysiaGRIP fund. The FMM Institute had recently submitted additional programmes at the behest of PSMB to help our members utilise their levy in the 1MalaysiaGRIP account before the funds were channelled into the pool. For the record, of the 152 training programmes approved by PSMB under the 1MalaysiaGRIP, only 12 courses or 8% had been approved for FMM Institute. This hardly qualifies as a monopoly.

5.       The FMM Institute offers only its own 1MalaysiaGRIP courses. It does not offer third party programmes under 1MalaysiaGRIP. The claim of charging a 25% fee on training providers if they wish to be awarded programmes by the FMM Institute is therefore false, irresponsible and damaging to the good name of our organisation.

6.       Even the statistics used to denigrate the FMM Institute’s contribution to training and standing as a credible training provider is grossly inaccurate. The FMM Institute trains on average 18,000 participants A YEAR throughout the country; and not as quoted 19,909 participants over 23 years.

7.       FMM has no intention nor can it usurp the role of HRDF. FMM is very clear on its mission to champion the interest of manufacturers in the country. FMM has from the outset strongly objected to the apportioning of 30% of employers’ monthly HRDF contribution into the 1MalaysiaGRIP programme and the subsequent decision to channel any unutilised funds from the programme into a common pool. FMM maintains its objections until today. FMM’s interest and concerns have always been to ensure that HRDF funds are properly and efficiently used for the benefit of employers registered under the HRDF Act, and their employees. FMM has never called on PSMB or the Government for monopoly of the fund. 

8.       The training providers claimed to have been informed by PSMB that the FMM Institute and MEF Academy would be regulating the pool fund. PSMB CEO had also in the latest Malaysia SME edition claimed that employers’ federations are lobbying for control of the HRDF. This claim has been echoed by the Editor of Malaysia SME in the same edition. FMM has not made such a lobby and it has no intention of doing so. It is unprofessional and misleading to distort and infer that FMM’s strong criticisms against the 30% and pool fund issues as a lobby to control the HRDF. PSMB has an obligation to employers registered with the HRDF as well as to FMM to clear the air on this issue and clarify any miscommunication which may have been conveyed to the training providers by its officers.

9.         FMM demands an apology from the FMTA and to desist from further making these false allegations. We also demand an apology from the Malaysia SME on their claim and to print FMM’s letter to ensure balanced and fair reporting; as well as FMTA’s apology and PSMB’s clarification, in particular.

Back to Top

Advertising Opportunities in FMM's Directories:
Copyright © 2017 Federation of Malaysian Manufacturers 
Wisma FMM, No 3 Persiaran Dagang, PJU 9, Bandar Sri Damansara, 52200 Kuala Lumpur.