KUALA LUMPUR: The Human Resource Development Corporation (HRD Corp) levy places a major financial strain on industry members, said the Electrical and Electronics Association Malaysia (TEEAM).

The association, in a statement, said the levy, set at one per cent of employees' monthly wages, presented considerable financial challenges to employers or companies.

"This was set in 2021, and until now, the levy has added to the already heavy financial obligations faced by companies in the sector, including industry-specific fees and levies.

"Electrical contractors not only pay the HRD Corp levy but also contribute to the Construction Industry Development Board by paying a 0.125 per cent levy on the total value of construction work.

"Professionals such as engineers and competent servicing engineers are required to pay annual renewal fees and participate in compulsory training programmes under the Continuing Professional Development initiative."

TEEAM urged the government to reassess and reconsider the HRD Corp levy on the industry.

"The exemption will help reduce the cost of doing business and allow companies to focus on delivering quality services and products without additional financial strain.

"We are ready to engage with the government and relevant entities to discuss this matter and advocate for a more favourable regulatory environment for our industry," it said.

https://www.nst.com.my/news/nation/2024/07/1079990/call-hrd-corp-reconsider-levy-electrical-and-electronics-industry