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MEF: please reconsider implementing SIP

May 02, 2017

MEF has called for the government to reconsider implementing its Employment Insurance Scheme, SIP saying it will cause an increase in operating costs for employers.

The Federation told the NST, most businesses are already experiencing difficulties and the scheme, which will be implemented next year, will only add to the burden.

It adds, the amount of collection will far exceed the amount given to assist forcefully retrenched workers, while the initial cost of setting up the infrastructure is expected to cost 320 million ringgit.

As such, it suggested for the government to consider imposing a savings scheme, which allows an employee to contribute money to a fund, which he can use if he's retrenched.

The PM announced yesterday the allocation of 70 million ringgit to the SIP.