HR levy relief for textile, electronics and electrical sectors

HR levy relief for textile, electronics and electrical sectors
By A. LETCHUMANAN
Star, 22 Jan 2009

PUTRAJAYA: Employers in the textile and electronics and electrical sectors will be exempted from paying the human resources development levy for six months starting Feb 1, Human Resources Minister Datuk Dr S. Subramaniam said.

He said this was being done to ease the employers? financial burden in view of the global economic crisis.

With the Government?s move, these employers are expected to save between RM30mil and RM40mil, he said in a statement here Thursday.

Dr Subramaniam said the textile industry would be exempted from paying RM2.68mil while the electronics and electrical industry would not have to pay RM30.57mil during the six-month period.

He said the exemption involved 1,234 employers registered with the Human Resources Development Corp under his ministry, comprising 325 employers in the textile industry and 909 employers in the electronics and electrical industry.

?This is a proactive measure undertaken by the Government to assist employers during these hard times,? he said.

He said the exemption was given due to the continued decline in demand which has badly affected the two industries.

Despite the exemption from February to July, employers were encouraged to continue sending their workers for training and to utilise the levy in their accounts, he said.

Dr. Subramaniam said the Government had previously fully or partially exempted payment of the levy on three occasions: The Asian financial crisis in 1998; the 2001 economic slowdown and during the Iraq war and SARS epidemic in 2003.

He said the Government would continue to monitor the growth of both industries based on the monthly Industrial Production Index and review the situation at the end of the six-month period.

If the situation persists, a further exemption would be considered, he said.