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Levy exemption for employers

KUALA LUMPUR, 22 Jan 2009: The government will exempt employers in the textile and the electrical and electronics (E&E) industries from paying the human resources development levy for six months effective 1 Feb.

The move is aimed at easing their financial burden in view of the global economic crisis, Human Resources Minister Datuk Dr S Subramaniam said in a statement from Putrajaya today.

With the government’s move, employers were expected to save between RM30 million and RM40 million, he said.

He said for the six month period, the amount of human resources development levy that would be exempted for the textile industry was RM2.68 million and RM30.57 million for the E&E industry.

Dr Subramaniam said the exemption involved 1,234 employers registered with the ministry’s Pembangunan Sumber Manusia Bhd, and affected 325 employers in the textile industry and 909 employers in the E&E 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.

“Even though the levy is exempted from February to July 2009, employers in both industries are encouraged to continue sending their workers for training, and to utilise their levy in their accounts,” he said.

Dr Subramaniam said the government had fully or partially exempted the levy payment on three previous occasions namely the Asian financial crisis in 1998; the 2001 economic slowdown; and 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 six months.

“If the situation persists, a further exemption would be considered,” he added. — Bernama


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