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FMM Expresses Concern over Employment Insurance System Bill

FMM in the News - The Edge - August 2, 2017

KUALA LUMPUR (Aug 2): The Federation of Malaysian Manufacturers (FMM) has voiced out its concern over the Employment Insurance System (EIS) Bill 2017, which was tabled for the first reading in the Dewan Rakyat yesterday, claiming that the EIS could cause further deterioration in work attitude and commitment.

"Human related costs would rise significantly without commensurate increase in work productivity and quality. We are most concerned that the EIS could cause further deterioration in work attitude and commitment," FMM said.

"Consideration has to be given to the business sector's capacity to absorb continually rising costs of doing business which is affecting sustainability and competitiveness," it added.

The EIS Bill was presented by Human Resource Minister Datuk Seri Richard Riot and provides guidelines to assist in the re-employment of an individual and payment of benefits to dependents should an insured employee pass away, falls into a coma or is of unsound mind, among others.

It also highlights the introduction of the 'Employment Insurance Fund', which will operate and manage insurance contributions collected from both employers and employees.

"In all engagements with employers which the FMM had participated, the Ministry of Human Resources had always informed that the EIS is to protect the interests of workers who had been retrenched and were not paid their employment termination and lay-off benefits (ETLB) and to help tide them over when seeking new employment," FMM said in a statement today.

"However, press reports implied that the Bill is providing financial assistance to all who are unemployed, including those who took up Voluntary or Mutual Separation Schemes (VSS and MSS) and even allowing dependents to claim in the event an insured employee dies, falls into a coma or of unsound mind," it said.

FMM further claimed that the transfer of benefits to dependents is "confusing" and that the provision had never been highlighted during engagement with employers.

It also suggested that employers be given access to the Bill to review the details, thus allowing the federation to further highlight its concerns to the Malaysian government.

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