PETALING JAYA: Following revelations that more than RM100 million under the Human Resources Development Fund (HRDF) had been misused to buy property, the Malaysian Employers Federation (MEF) urged the government to ensure the fund stick to its role — to catalyse the development of competent local workforce.
Otherwise, the government should abolish HRDF and leave it to individual companies to manage their own funds for training workers.
MEF executive director Datuk Shamsuddin Bardan told Sin Chew Daily in a report published today that the federation is following closely reports that HRDF money had been misused to buy property.
He pointed out that the fund, to which employers registered with Human Resource Development Council are required to contribute an amount equal to 1% of their employee’s monthly salary, was set up to allow employers to train their employees.
However, now that the fund has been used to purchase property in transactions that may not have followed the proper procedures, he said.
“We have time and again reminded the government not to allow HRDF to engage in activities other than managing the training of the domestic workforce. This is very crucial.
“Now, the fund is also involved in investment, i.e. purchase of property. The amount involved, which totalled RM140 million, could have been better used by contributing employers to train and upskill their workers,” he said.
In November last year, Human Resources Minister M Kulasegaran disclosed that a big portion of money entrusted with HRDF had been misused by several individuals linked to the previous management for their personal gain.
He said the money, which amounted to millions of ringgit, were used to buy property as well as pay salaries and hefty bonuses for selected employees.
