APPENDIX B

www.mef.org.my

Annual Report 2019 VISION To be the premier employers’ representative at national, regional and international levels and to be the leader in the development of human resources and the promotion of good employment practices and harmonious industrial relations with a view to achieving national objectives.

MISSION • To promote the development of excellence in human resource management to enable employers meet current and future business challenges. • To promote productivity through inter alia harmonious employer/ employee relationship. • To promote and represent the interests of employers at national, regional and international fora. • To promote and represent the business interests of employers at national, regional and international fora.

OBJECTS The Federation achieves its vision and mission through the following core activities and objects:-

• representation of members at conciliation and mediation proceedings and at proceedings before the Labour and Industrial Courts. • provision of advisory/consultancy services, at all levels. • provision of professional training and related activities through the establishment of an MEF Academy. • research and development of best practices in all relevant fields. • advocacy and representation of employers’ interests and business needs at national, regional and international fora. MEF Council 2018 – 2020 02 MEF Committees 2018 – 2020 04 Tribute To Past Council Members 08 President’s Report of the Council 10 Dialogues & Representations to Government 18 International & Regional Cooperations 26 MEF Conferences & Seminars 42 MEF 60th Anniversary Dinner 54 MEF Industrial Relations Panel 58 MEF Services to Members • Membership & Public Relations 64 • Industrial Relations 71 • Research & Information 72 • Information Technology 75 • Employer Affairs 77 • Occupational Safety, Health & Environment 78 • Regional Meetings / Activities 81 MEF Academy 90 International Meetings/ Seminars 2019 100 MEF Representatives to Other Organisations 103 MEF Industrial Relations Panel Members 109 MEF Health, Safety & Environment Advisory Committee 112 Email – MEF Council (2018 – 2020) 113 MEF Secretariat 114 Headquarters & Regional Offices Addresses 118

ANNUAL REPORT 2019 MEF COUNCIL (2018 – 2020)

Front row (seated from left): Dato’ Ir. S. S. Subramaniam, En A. Ramadass, Datuk Hj Shamsuddin Bardan, Tan Sri Azman Shah Dato’ Seri Haron, Dato’ J. Palaniappan, Tn Hj Abdul Wahab Abu Bakar, En Christopher S. Raj, KMN

Second row (standing from left): Datuk Wira SM Faisal Tan Sri SM Nasimuddin, Datuk Nora Abd. Manaf, Pn Anne Kung Soo Ching, Tan Sri Dato’ Dr. Mohd Noor Ismail, Tn Hj Mohammed Amin Aziz, En Alan Khoo Choom Kwong, Dato’ Sri Tan Thian Poh, En Mohd Syukri Ahmad Sudari, Dato’ Dr. Syed Hussain Syed Husman, J.P., Assoc. Prof. Dr. Michael Chiam Tow Hui, Dato’ Dr. Lim Weng Khuan, Pn Peggy Chew Being Being, Dato’ Raiha Azni Abd Rahman, Dato’ Ahmad Nadzarudin Abdul Razak, Tn Hj Mohd Farid Shah Mohd Basir, Tn Hj Mohamad Audong

Not in group photo: Pn Nadiah Tan Abdullah, Tn Hj Zulkifly Abdul Rahman

02 ANNUAL REPORT 2019 President Dato’ Ahmad Nadzarudin Abdul Razak Tan Sri Azman Shah Dato’ Seri Haron Golden Pharos Berhad Antara Holiday Villas Sdn Bhd Assoc. Prof. Dr. Michael Chiam Tow Hui Vice-Presidents Commercial Employers’ Association of En A. Ramadass Peninsular (CEAPM) Ramadass & Associates En Mohd Syukri Ahmad Sudari Tn Hj Abdul Wahab Abu Bakar Association of Insurance Employers (AIE) Excel Minds Consultancy Sdn Bhd En Alan Khoo Choom Kwong Dato’ Ir. S. S. Subramaniam Employers’ Consultative Association Malaysian Chamber of Mines (MCM) (SECA)

En Christopher S. Raj, KMN Datuk Nora Abd. Manaf Association of Hotel Employers (AHE) Malayan Commercial Banks’ Association (MCBA)

Honorary Treasurer Pn Anne Kung Soo Ching Dato’ J. Palaniappan Chamber of Commerce and Satake Technologies Sdn Bhd Industry (SCCI)

Tn Hj Mohamad Audong Council Members The Malayan Agricultural Producers Tn Hj Mohammed Amin Aziz Association (MAPA) A. P. Search Management Recruitment Sdn Bhd Tan Sri Dato’ Dr. Mohd Noor Ismail Dato’ Dr. Syed Hussain Syed Husman, J.P. (Tan Sri Dato’ Dr. Mohd Noor Ismail passed away SVTT Resources Sdn Bhd on 13.07.2020) Rebut Resources Sdn Bhd (Uptown Sports) Tn Hj Zulkifly Abdul Rahman Pn Peggy Chew Being Being Renesas Semiconductor KL Sdn Bhd Sarawak Timber Association (STA) Tn Hj Mohd Farid Shah Mohd Basir Dato’ Raiha Azni Abd Rahman Telekom Malaysia Berhad Petroliam Nasional Berhad (PETRONAS) Pn Nadiah Tan Abdullah Datuk Wira SM Faisal Tan Sri SM S P Setia Berhad Nasimuddin, D.C.S.M.D.S.D.K.

NAZA World Group of Companies Dato’ Sri Tan Thian Poh Trackland Sdn Bhd Secretary Dato’ Dr. Lim Weng Khuan Datuk Hj Shamsuddin Bardan TC Management Services Corporation Sdn Bhd Malaysian Employers Federation

ANNUALANNUAL REPORT REPORT 2019 2019 03 MEF COMMITTEES 2018 – 2020 (Committees Established Under MEF Constitutional Rules)

MEF CONSTITUTIONAL COMMITTEES Audit Committee • Dato’ Ahmad Nadzarudin Abdul Razak – Chairman • Dato’ Ir. S. S. Subramaniam • Tn Hj Mohamad Audong • Datuk Nora Abd. Manaf • Tan Sri Dato’ Dr. Mohd Noor Ismail (Tan Sri Dato’ Dr. Mohd Noor Ismail passed away on 13.07.2020)

Establishment Committee • Tan Sri Azman Shah Dato’ Seri Haron – Chairman • En A. Ramadass • Tn Hj Abdul Wahab Abu Bakar • Dato’ J. Palaniappan • Tn Hj Mohammed Amin Aziz • Assoc. Prof. Dr. Michael Chiam Tow Hui • Dato’ Dr. Lim Weng Khuan

Finance Committee • Dato’ J. Palaniappan – Chairman • Tn Hj Abdul Wahab Abu Bakar • En Mohd Syukri Ahmad Sudari • Tn Hj Zulkifly Abdul Rahman • Dato’ Sri Tan Thian Poh • Pn Anne Kung Soo Ching

Membership Committee • Tan Sri Azman Shah Dato’ Seri Haron – Chairman • Tn Hj Abdul Wahab Abu Bakar • Tn Hj Mohammed Amin Aziz • Dato’ Dr. Syed Hussain Syed Husman, J.P. • Pn Nadiah Tan Abdullah • Tn Hj Mohd Farid Shah Mohd Basir

Selection & Credential Committee • Tan Sri Azman Shah Dato’ Seri Haron – Chairman • En A. Ramadass • Tn Hj Abdul Wahab Abu Bakar • Dato’ Ir. S. S. Subramaniam • En Christopher S. Raj, KMN

04 ANNUAL REPORT 2019 MEF STANDING COMMITTEES Transformation Committee • En Mohd Syukri Ahmad Sudari – Chairman • Tn Hj Abdul Wahab Abu Bakar • En Christopher S. Raj, KMN • Dato’ J. Palaniappan • Dato’ Dr. Syed Hussain Syed Husman, J.P. • Pn Peggy Chew Being Being • Tn Hj Mohd Farid Shah Mohd Basir • Pn Nadiah Tan Abdullah • En Alan Khoo Choom Kwong

Current Issues Committee • Dato’ Sri Tan Thian Poh – Chairman • En Christopher S. Raj, KMN • Assoc. Prof. Dr. Michael Chiam Tow Hui • Datuk Nora Abd. Manaf • Tan Sri Dato’ Dr. Mohd Noor Ismail (Tan Sri Dato’ Dr. Mohd Noor Ismail passed away on 13.07.2020) • Dato’ Raiha Azni Abd Rahman • Dato’ Ahmad Nadzarudin Abdul Razak

International Relations Committee • En A. Ramadass – Chairman • Tn Hj Abdul Wahab Abu Bakar • Dato’ J. Palaniappan • Assoc. Prof. Dr. Michael Chiam Tow Hui • Tn Hj Mohamad Audong • Datuk Nora Abd. Manaf • Tn Hj Mohd Farid Shah Mohd Basir • Dato’ Dr. Syed Hussain Syed Husman, J.P. • Pn Nadiah Tan Abdullah

Public Relations Committee • En Christopher S. Raj, KMN – Chairman • Dato’ Dr. Syed Hussain Syed Husman, J.P. • Tan Sri Dato’ Dr. Mohd Noor Ismail (Tan Sri Dato’ Dr. Mohd Noor Ismail passed away on 13.07.2020) • Tn Hj Zulkifly Abdul Rahman

ANNUAL REPORT 2019 05 MEF AD HOC COMMITTEES Law Revision Committee • En A. Ramadass – Chairman • En Christopher S. Raj, KMN • Dato’ J. Palaniappan • Tn Hj Mohammed Amin Aziz • Assoc. Prof. Dr. Michael Chiam Tow Hui • En Alan Khoo Choom Kwong • Tn Hj Mohamad Audong • Pn Peggy Chew Being Being • Dato’ Dr. Lim Weng Khuan

President’s Committee • Tan Sri Azman Shah Dato’ Seri Haron – Chairman • En A. Ramadass • Tn Hj Abdul Wahab Abu Bakar • Dato’ Ir. S. S. Subramaniam • En Christopher S. Raj, KMN • Dato’ J. Palaniappan

Social Responsibility & Standards Committee • Assoc. Prof. Dr. Michael Chiam Tow Hui – Chairman • En A. Ramadass • Tn Hj Mohamad Audong • Pn Peggy Chew Being Being • Dato’ Raiha Azni Abd Rahman • Tn Hj Mohd Farid Shah Mohd Basir

06 ANNUAL REPORT 2019 OTHER MEF COMMITTEES MEF Council Members in Health, Safety & Environment Advisory Committee • Dato’ Dr. Syed Hussain Syed Husman, J.P. – Chairman • Assoc. Prof. Dr. Michael Chiam Tow Hui • Tn Hj Mohamad Audong • En Mohd Syukri Ahmad Sudari • Pn Peggy Chew Being Being • Dato’ Ahmad Nazarudin Abdul Razak

MEF Council Members in Industrial Relations Panel • En A. Ramadass – Chairman • En Christopher S. Raj, KMN • Dato’ J. Palaniappan • Tn Hj Mohammed Amin Aziz • Dato’ Dr. Lim Weng Khuan • Dato’ Sri Tan Thian Poh • Tn Hj Mohd Farid Shah Mohd Basir • Assoc. Prof. Dr. Michael Chiam Tow Hui • Tn Hj Mohamad Audong • Pn Peggy Chew Being Being • Pn Anne Kung Soo Ching • En Mohd Syukri Ahmad Sudari • En Alan Khoo Choom Kwong

MEF Council Members in TVET Committee • Tan Sri Dato’ Dr Mohd Noor Ismail – Chairman (Tan Sri Dato’ Dr. Mohd Noor Ismail passed away on 13.07.2020) • En Abdul Wahab Abu Bakar • En Christopher S. Raj, KMN • Dato’ J. Palaniappan • Dato’ Dr. Syed Hussain Syed Husman • Dato’ Dr. Lim Weng Khuan • Datuk Wira SM Faisal Tan Sri SM Nasimuddin

ANNUAL REPORT 2019 07 TRIBUTE TO PAST COUNCIL MEMBER We extend our condolences to the family and business counterparts of the following Council Member whose demise deeply remembered by MEF

• Datuk Ng Beh Tong MEF Council Member: 8 May 1996 – 18 July 2018

The late Datuk Ng Beh Tong was the MEF Council Member beginning 8 May 1996 up to 18 July 2018. He represented the Malaysian Chamber of Mines (MCM) in the MEF Council. Datuk Ng Beh Tong passed away peacefully on 5 January 2019.

The late Datuk Ng Beh Tong contributed significantly as Vice-President of MEF for the following duration: • 1998 • 2001 • 2006 – 2007 • 2012 – 2013 • 2018 – 2020 (up to 18 July 2018)

He was also an active MEF Council Member and had served in various committees of MEF Council which include the followings: • Membership Committee – Member (2000 – 2017) • Selection & Credentials Committee – Member (2012 – 2013) • President’s Committee – Member (2012 – 2013)

08 ANNUAL REPORT 2019

TRIBUTE TO PAST COUNCIL MEMBER We extend our condolences to the family and business counterparts of the following Council Member whose demise deeply remembered by MEF

• Allahyarham Tan Sri Dato’ Dr. Mohd Noor Ismail MEF Council Member: 11 September 2008 – 13 July 2020

Allahyarham Tan Sri Dato’ Dr. Mohd Noor Ismail was invited as a member of MEF Council effective on 11 September 2008. He was the Chairman of The Malayan Agricultural Producers’ Association (MAPA) until 2014. Later, Allahyarham Tan Sri Dato’ Dr. Mohd Noor became a Council Member in his personal capacity as Chairman of Rebut Resources Sdn Bhd and served the MEF Council till his sudden demise on 13 July 2020.

He was an active MEF Council Member and was involved in various committees of MEF Council which include the followings: • Foundation Committee – Chairman (2009 – 2011) • Public Relations Committee – Member (2010 – 13 July 2020) • National Competitiveness Committee – Member (2010 – 2011) • Emerging Practices Committee – Member (2012 – 2017) • Current Issues Committee (2018 – 13 July 2020) • Audit Committee (2019 – 13 July 2020) • TVET Committee (2019 – 13 July 2020)

ANNUAL REPORT 2019 09 PRESIDENT’S REPORT OF THE COUNCIL

In 2019, MEF celebrated its 60th anniversary. As the apex employer organisation at the national, regional and international levels, MEF has for the past 60 years contributed significantly as the voice of employers in ensuring that members’ interests and challenges are heard in view of the changing business environment brought about by technological advancements, globalisation and intense competition. The Federation recognised the need to adapt and adopt various strategies to improve services to the members which include expanding the Federation’s focus and scope beyond the industrial relations matters to include human resource management, education, trade, finance, taxation and health issues.

Over the years, MEF continuously took the lead to ensure that the collective views and position of businesses are represented through joint industry memoranda. MEF is deeply involved in efforts to enhance Malaysia’s productivity and competitiveness at the various platforms of Government. The active participation of the MEF Council members reflect the commitment to the development of national policies. The President is the Chairman of Finance Sub Committee of the Cabinet Committee on Enhancement of TVET and MEF Council Members sit in the various inter-agency planning groups for RMK-12 on Human Capital Development under the Ministry of Economic Affairs.

Malaysian Economy Amid the challenging global economic environment and domestic supply disruptions, the Malaysian economy expanded by 4.3% in 2019, supported by resilient private sector spending. Inflation was lower at 0.7% (2018: 1.0%). In line with most emerging market economies, however, weaker external demand weighed on Malaysia’s exports and investment activities. In the second half of the year, the economy was affected by supply disruptions in the commodities sector. The services and manufacturing sectors remained as key contributors to growth. However, these sectors expanded at a more moderate pace mainly on account of weaker external demand and a normalisation in

10 ANNUAL REPORT 2019 the growth of household spending. The services sector expanded by 6.1% (2018: 6.8%) while manufacturing sector recorded a slower growth of 3.8% in 2019 (2018: 5.0%). The agriculture and mining sectors benefitted from an improvement in oil palm yields and a recovery in natural gas production from pipeline disruptions in 2018, respectively. These sectors, which had improved in the first half of the year, subsequently contracted in the second half amid a recurrence in supply disruptions which had affected the production of oil palm, natural gas and crude oil. Growth in the construction sector moderated, following the completion of large projects, smaller scale and fewer number of new projects and an oversupply of properties. (Source: Bank Negara Economic and Monetary Review 2019).

The labour market conditions remained supportive of growth in 2019, despite being softer. Employment grew by 2.1% (2018: 2.5%), amounting to an additional employment gain of 316,000 persons, while unemployment rate remained stable at 3.3%. The labour force participation rate also rose to 68.9% (2018: 68.3%). From a sectoral perspective, employment growth was driven mainly by the services sector (3.2%), followed by the manufacturing (2.1%) and agriculture (1.6%) sectors. Retrenchments rose to 29,605 persons per annum (2018: 23,168 persons).

With the expectation of global recession resulting from COVID-19 pandemic, Malaysia’s GDP growth is projected to be between -2.0 to 0.5% in 2020 (2019: 4.3%). The domestic economy will be impacted by the necessary global and domestic actions taken to contain the outbreak. Of significance, tourism-related sectors are expected to be affected by broad-based travel restrictions and travel risk aversion, while production disruptions in the global supply chain will weigh on the manufacturing sector and exports. The implementation and subsequent extension of the Movement Control Order (MCO), while critical, will dampen economic activity following the suspension of operations by non- essential service providers and lower operating capacity of manufacturing firms. (Source: Bank Negara Economic and Monetary Review 2019).

As at end-September 2019, the number of registered foreign workers employed in Malaysia was 1.98 million. The current share of foreign workers remained at 12% of total employment following the Government’s efforts to reduce dependency on low- skilled foreign workers of not more than 15% of total employment by 2020. Foreign workers were mainly from Indonesia (35%), Bangladesh (29%) and Nepal (15%). The manufacturing sector employed the highest number of foreign workers (35.3%), followed by construction (21.7%) and plantation (13.4%) sectors. As at end-September 2019, the number of expatriates employed in Malaysia was 122,169 persons. The majority of expatriates were from India (22.7%), followed by China (20.1%) and Philippines (7.0%). The expatriates were mainly employed in the services (53.0%), information technology (31.7%) and construction (5.7%) sectors. (Source: Economic Outlook Report 2019/2020, Ministry of Finance).

ANNUAL REPORT 2019 11 National Labour Advisory Council (NLAC) MEF is actively engaged at the NLAC (the highest tripartite labour advisory body in Malaysia) and its technical committees to ensure that the interests of employers are protected and promoted. In 2019, the NLAC met 11 times to discuss issues related to the proposed amendments to labour laws. The MEF Council Members sit in at least one of the many technical committees set up by NLAC to narrow down differences on the proposed amendments to labour laws in particular amendments to the Industrial Relations (IR) Act 1967, the Employment Act (EA) 1955 and the Workers’ Minimum Standards of Housing and Amenities Act 1990.The MoHR under the former Government aimed to complete amendments to all the labour laws by the end of 2019 including the amendments to the Occupational Health and Safety Act 1994 and the Factories and Machineries Act 1967.

Proposed Amendments to Labour Laws Among the main issues of MEF’s concern in 2019 were the MoHR proposals to amend the Malaysian labour laws. The new government that was sworn in following the 14th general elections in May 2018 had reviewed many of the past labour practices and replace them with new policies and regulations. The proposed amendments to labour laws by the MoHR was discussed at tripartite technical committees set up under the National Labour Advisory Council (NLAC).

In order to obtain feedback to the proposed amendments, MEF held a joint meeting with industry organisations at MEF Headquarters, Petaling Jaya on 30 January 2019 to brief and discuss with the representatives of industry organisations on the Government’s intention to amend the labour laws.

12 ANNUAL REPORT 2019 Consequently, MEF submitted a letter to the former Prime Minister YAB Tun Dr. on 12 March 2019 to express its concerns on the proposals to amend the employment laws which included the Employment Act 1955, Industrial Relations Act 1967, Trade Unions Act 1959, Occupational, Health and Safety Act 1994 and Workers’ Minimum Standards of Housing and Amenities Act 1990. In addition, as on 5 April 2019, MEF followed up with a letter to the former Prime Minister on the rationale why Malaysian Government should not ratify ILO Convention 87 – Freedom of Association and Protection of the Right to Organise Convention, 1948.

MEF issued a press release on 14 October 2019, urging the Dewan Negara to reject the proposed amendments to Industrial Relations Act 1967 as tabled at on 7 October by the former Minister of Human Resources following his failure to formally consult both the MEF and MTUC at the NLAC and urged the Parliament to return the proposed amendments back to the NLAC for proper discussion. MEF strongly opposed the Government’s proposal to amend various provisions of the Industrial Relations Act. The proposed amendments would detrimentally disrupt the harmonious industrial relations in Malaysia, union activities such as the creation of omnibus unions and multiplicity of unions and the nation’s economic stability. The Dewan Negara passed the Bill on IR Act on 19 December 2019, followed by the Royal Assent on 6 February 2020.

On the proposed amendments under the Trade Unions Act 1959 whereby the Director- General would be compelled to register any application to register trade union regardless of trade, occupation, industry or establishment, MEF reiterated that the proposed amendments would drastically transform Malaysia’s industrial relations landscape to become confrontational.

MEF strongly objected on the Pakatan Harapan Government’s proposal to amend the coverage of EA. The proposal was to increase the coverage of EA from those employees

ANNUAL REPORT 2019 13 who earned monthly salary of RM2,000 to those employees who earned monthly salary of RM4,000. MEF was of the view this proposal would extremely costly for employers as the cost implications are huge. MEF also felt that there should be different rules applicable to rank and file employees and executives. MEF opposed the Government’s proposal to reduce the working hours from 48 hours to 44 hours per week and to increase the eligible period of maternity leave from not less than 60 consecutive days to 98 consecutive days.

Foreign Workers MEF had been consistently called for the Government to resolve issues and challenges related to the employment of foreign workers. The employment of foreign workers in Malaysia is fraught with issues and inconsistencies that negatively impact industry’s efficiency and productivity.

In 2019, the inconsistency of Government’s policy on the employment of foreign workers by the Government was demonstrated in the issue on implementation date of lower extension levy fees for foreign workers who have worked beyond 10 years in Malaysia. On 23 February 2019, the Ministry of Finance announced that the levy rates for extension of work permit for foreign workers beyond 10 years in manufacturing, services and construction sectors would be reduced from RM10,000 to RM6,000 whilst the levy for those who worked in the agriculture and plantation sectors would be reduced from RM3,500 to RM2,000 with effect from 1 March 2019 – 29 February 2020. However, MEF was informed that a written notice dated 5 April 2019 posted at the Foreign Workers Division of Immigration Department, stated that the same levy fees of RM10,000 for foreign workers with more than 10 years’ service in manufacturing, services and construction sectors while levy of RM3,500 000 for foreign workers with more than 10 years’ service in agriculture and plantation sectors still applied. In response to this matter, MEF had written a letter to Ministry of Home Affairs to request that the revised reduced rates of levy fees for foreign workers with more than 10 years’ service as announced by the Ministry of Finance on 23 February to be implemented with effect from 1 March 2019.

Among other issues submitted on foreign workers were the imposition of multi-tier levy system of foreign workers and shifting of levy payment from foreign workers to employers. On the imposition of multi-tier levy which would be implemented on 1 January 2020, MEF had repeatedly called the Government to retain the current levy system as the implementation of multi-tier levy would significantly increase the cost of doing business and impact the competitiveness of industries.

On the proposal to hire refugees to legally work in Malaysia, MEF supported the proposal as it can reduce the country’s dependency on foreign workers. Furthermore, it would be a cheaper alternative for employers compared to employing foreign workers. MEF supported the proposal made by the Institute for Democracy and Economic Affairs (IDEAS) on employing refugees in Malaysia.

14 ANNUAL REPORT 2019 Minimum Wages Rates Since 1 January 2018, the minimum wages were reviewed upwards for three times from RM1,000 and RM920 (for Peninsular Malaysia and Sabah and Sarawak respectively) to RM1,050 and RM970 and thereafter to RM1,100 across Malaysia. During the tabling of the Budget 2020 on 11 October 2019, the former Minister of Finance announced minimum wages be increased to RM1,200 for bigger cities.

In response to the announcement of increase in minimum wage to RM1,200, MEF together with 28 industry organisations met on 23 October 2019 and concluded that the review on minimum wages rate had ignored views and recommendations made by the National Wages Consultative Council (NWCC).

The industries were of the view that the increase of minimum wage rate would not solve the problem of high cost of living but would compound the problem with increase in prices of goods and services. The increase in minimum wages would largely benefit the foreign workers as they would remit the increased wages back to their home countries, which would result in an additional cash leakage of about RM4 billion yearly.

The meeting proposed that the Pakatan Harapan Government should meet their GE14 promise to the employers by subsidising 50% of the increase in minimum wages. The Government should also amend the definition of minimum wages from basic wages to gross wages as it would align to a productivity-linked wage system that would encourage growth and productivity.

On 18 December 2019, the former Minister of Human Resources announced that beginning 1 January 2020, the minimum wages of RM1,200 would be applied to 57 bigger cities and towns instead of limiting the coverage to bigger cities as initially announced during 2020 Budget. In response, MEF held another meeting together with 37 employer and business organisations on 23 December 2019. The Government’s decision to implement RM1,200 minimum wages in major cities and towns caused distress and anxiety among the employers and employees as the demarcation of geographical boundaries is unclear and left very little time for employers to make the necessary arrangements and adjustments. The meeting also concluded that the review of minimum

ANNUAL REPORT 2019 15 wages is not appropriate as it add on the cost of doing business when employers are faced with uncertainties. Following the meeting, a press conference was held on the same day and MEF also issued a press release dated 27 December 2019 with regard to the matter.

Employment Insurance System (EIS) MEF was informed that SOCSO as the administrator of EIS had proposed amendments to the EIS Act 2017 and planned to engage with various stakeholders to gather feedback on the matter. MEF was very concerned that this did not conform to agreed proper procedure for tabling such amendments to labour laws.

In a meeting between MEF Council Members and the Officers of Malaysian Trades Union Congress (MTUC) on 14 November 2019, both parties concluded that since the Employment Insurance System Act 2017 is part of the labour laws in Malaysia, it should then follow that the MoHR should table the proposed amendments at the NLAC and its Technical Committee for discussion by the recognised tripartite partners. MEF Council Members who attended the meeting were En A. Ramadass (Vice- President), Dato’ Sri Tan Thian Poh (Council Member) and Dato’ Dr. Lim Weng Khuan (Council Member). The MTUC was represented by its President Dato’ Abdul Halim Mansor, Secretary General En J. Solomon, Deputy Secretary General En A. Balasubramaniam and Vice President (Private Sector) En S. Somahsundram. A letter which contained MTUC and MEF views on the matter was then submitted to the former Minister of Human Resources YB Tuan M. Kulasegaran for his further action.

Tripartism Besides the involvement of MEF in the NLAC, MEF also participated in various MoHR and MTUC activities in the spirit of tripartism. MEF continues to take part in the National Labour Day celebration. In 2019, the National Labour Day celebration was held on 1 May 2019 at the Putrajaya International Convention Centre (PICC).

16 ANNUAL REPORT 2019 About 50 MEF staff and some of MEF Council Members participated in the National Labour Day celebration. MEF President Tan Sri Azman Shah Dato’ Seri Haron was invited as one of the VVIPs representing the employers at the celebration. Among the MEF Council Members that attended the celebration were MEF Vice- Presidents En A. Ramadass, Tn Hj Abdul Wahab Abu Bakar and MEF Council Members, Pn Nadiah Tan Abdullah, En Mohd Syukri Ahmad Sudari, Dato’ Dr. Lim Weng Khuan and Dato’ Ahmad Nazarudin Abdul Razak. MEF also participated in the exhibition booth displaying posters and leaflets on MEF milestone, role, activities, training and MEF publications.

In conjunction with Labour Day Celebration, MEF held a Tripartite Seminar on 23 April 2019 with theme on ”Pekerja Amanah Aspirasi Negara“. The Seminar was partly supported by Petronas, Telekom Malaysia Berhad and SP Setia Berhad. The event was well attended by representatives from MTUC, Congress of Unions of Employees in the Public and Civil Services (CUEPACS), MoHR officials and MEF members.

ANNUAL REPORT 2019 17 DIALOGUES & REPRESENTATIONS TO GOVERNMENT

Budget Consultation 2020 On 27 June 2019, MEF President Tan Sri Azman Shah Dato’ Seri Haron together with MEF Senior Manager – Employer Affairs En Mohd Zakri Baharudin attended the Budget Consultation session at the Ministry of Finance (MoF), Putrajaya.

The theme for the 2020 Budget Consultation Session was “Shared Prosperity: Sustainable and Inclusive Growth Towards High Income Economy”. The consultation session was chaired by the former Minister of Finance YB Tuan . Following were amongst the issues and proposals submitted by MEF in its memorandum to MoF:

• Foreign Workers MEF continued to object to the Government’s policy on renewal of work permit for foreign workers after 10 years which had created confusion among the employers. Government should not impose additional levy for renewal of work permit for foreign workers after 10 years. MEF proposed that the levy rate should be the same as normal renewal of work permit. The imposition of multi-tier levy for foreign workers which began on 1 January 2020 would significantly increase the cost of doing business and impact competitiveness of industries.

On the Government’s decision to shift the responsibility of paying levy from foreign workers to employers, MEF emphasised that payment of levy should remain to be paid by the foreign workers as the levy functions as a form of income tax for the foreign workers to utilise public utilities. In addition, levy should not be used as a mechanism to increase the Government’s revenue or to reduce Malaysia’s dependency on foreign workers. MEF recommended that the levy paid should be ploughed back into industry, used to develop skilled local workers and to provide industry with the necessary incentives for skills training, automation and mechanization.

On forced labour and anti-trafficking issues, MEF proposed that the Government ensure that foreign workers entering Malaysia to work to be free from elements of forced labour including debt bondage. This would reflect that Malaysia upholds high labour standards and not be subject to accusations of forced labour.

MEF recommended that income tax deduction of 28% of the monthly income of new foreign workers for the first 6 months income even though the amount of the monthly income does not exceed the threshold taxable income be waived unless the monthly income of the foreign workers exceeds the taxable threshold level.

18 ANNUAL REPORT 2019 • Cost of Living MEF continuously recommended that the Government extends assistance to retrenched workers in the form of full tax relief for any payment made to an employee as compensation for loss of employment.

On personal income tax relief of employees for EPF and life insurance , MEF proposed that the personal income tax relief for contribution to EPF and life insurance premium should be based on total actual contributions to EPF and life insurance premium payment and not to be capped.

• Minimum Wages MEF disagreed with the Government’s proposal that the minimum wages be standardised throughout the country. MEF was of the view that wages should reflect the productivity and economic level of the regions or states and based on each sector of the occupation as stated in the NWCC Act. MEF also proposed that the Government should establish policy to link wages to certified skills of employees.

• Cost of Doing Business MEF was of the view that with the proposed amendments to labour laws, the cost of doing business by employers would be increased. MEF stressed that employers should not be made to bear the additional costs for maternity leave, paternity leave and bereavement leave. MEF proposed that these proposed amendments to the labour laws be rejected.

Memorandum to MITI Consultative Dialogue 2019 MEF participated in the Ministry of International Trade and Industry (MITI) Consultative Dialogue 2019 which was held on 15 – 16 October 2019 at MITI Tower, . The former Minister of International Trade and Industry YB Datuk chaired the dialogue session with theme “Rebuilding Malaysia Together: Strengthening Synergies Between Government and Industries”.

ANNUAL REPORT 2019 19 In its memorandum to MITI, MEF was of the view that in general, the overall quality of fresh graduates produced by the public and private universities, especially among Malay graduates did not fulfil the required standards set by employers. Among the weaknesses commonly found among the fresh graduates were: • lack of communication skills and intellectual thinking ability to discuss and present ideas during interviews. • lack of self-confidence is reflected during job interviews, office meetings and public speaking. • taking up courses that do not match industry needs • lack of job experience due to fresh graduates’ attitude • selective about jobs • reluctance of graduates to relocate from rural to urban areas where employment opportunities are aplenty

MEF recommended that the existing education system should be revamped to meet the rapid changes taking place in the globalized environment so as to prepare the students for the IR 4.0, the future of work and in the digital economy. Graduates should be willing to take up courses in new promoted areas such as the services sector and biotechnology, where job opportunities are aplenty and avoid taking courses where the market demand for such job opportunities are already saturated. In addition, graduates should not be choosy on the type of jobs that are available in the labour market. Graduates should be open minded, be prepared to work at any place and need to be multi-skilled. Universities also need to be sensitive to market trends and align their curriculum to meet necessary requirements.

Joint Memorandum on the Reinstatement of Foreign Workers Replacement System MEF together with 23 industry organisations which included the National Chamber of Commerce and Industry of Malaysia (NCCIM) submitted a joint memorandum on the reinstatement of Foreign Workers Replacement System to the former Minister of Human Resources YB Tuan M. Kulasegaran on 16 July 2019.

The memorandum sought for the Minister’s consideration to simplify the approval process of the reinstated Foreign Workers Replacement System as well as normalising the supply of foreign workers. It was highlighted that currently, the application process of the reinstated Foreign Workers Replacement System as announced by the YB Tuan M. Kulasegaran on 31 May 2019 still required employers who sought to replace their foreign workers to go through the similar process as the new application for foreign workers. The former Minister of HR in his media statement clearly stated that the to-

20 ANNUAL REPORT 2019 be-reinstated Foreign Workers Replacement System would enable employers to replace foreign workers who have returned to their source countries without the need to go through the process of new foreign workers application.

The memorandum recommended that the approval process of the reinstated Foreign Workers Replacement System to be simplified by abolishing the requirement of going through the Labour Department’s assessment again which could be considered redundant. The memorandum also highlighted the issue on supply shortage of foreign workers from approved source countries, particularly from Bangladesh and Nepal faced by the industries.

The memorandum emphasised that the unresolved long-drawn foreign workers’ issues including the tedious and lengthy application procedures continue to add on the burden of doing business and had seriously disrupted the business operations of many sectors in Malaysia.

Letter to Prime Minister on Proposed Amendments to Employment Laws On 12 March 2019, MEF submitted letter to the former Prime Minister YAB Tun Dr. Mahathir Mohamad to express its concerns on the proposals by the MoHR to amend the employment laws which included the Employment Act 1955, Industrial Relations Act 1967, Trade Unions Act 1959, Occupational, Health and Safety Act 1994 and Workers’ Minimum Standards of Housing and Amenities Act 1990.

MEF submitted that the proposed amendments were mainly based on the Labour Consistency Plan (LCP) under the defunct Trans-Pacific Partnership Agreement (TPPA) to align Malaysia’s employment laws with the core Conventions of the International Labour Organisation (ILO) that might not be in the best interest of Malaysia. In addition, some of the proposed amendments would detrimentally impact the economy and potentially be harmful to the existing harmonious industrial relations.

MEF opposed the proposed amendments to increase the coverage of Employment Act from those who earned wages of RM2,000 per month to those who earned wages of RM4,000 per month. MEF was of the view that extending the coverage of EA to the Executives and upper management level employees might give rise to conflict of interest of such employees vis-à-vis the employers’ interest. MEF also submitted that it disagreed with the enhancement of eligible period of maternity leave from 60 consecutive days to 98 consecutive days, the proposed amendments by decoupling the hospitalization leave and outpatient sick leave, the proposed introduction of paid paternity leave of 3 consecutive days for each child born to a maximum of 5 child birth and the proposed insertion of flexible working arrangements. MEF stressed that these proposals would add to the cost of doing business and would cause a lot of administrative difficulties and operational challenges to the employers.

ANNUAL REPORT 2019 21 MEF submitted that the proposed amendments on Employees’ Minimum Standards of Housing, Accommodation and Amenities Act 1990 imposed very high standards for accommodation especially for foreign workers with increased penalties imposed on employers.

With regard to the proposed amendments to the Occupational Safety and Health Act 1994, MEF raised its concerns regarding the commercialization of OSH services and the power of Director-General to approve licensed persons to conduct inspection, and the Minister’s powers to grant licence to any individual to carry out inspections.

On the proposed amendments to the Industrial Relations Act 1967, MEF stressed that the proposed amendments would explicitly encourage multiplicity of trade unions. This would give rise to a lot of intra union rivalries which would be not conducive for harmonious industrial harmony. MEF was very concerned with the Government’s proposal to delete certain industries such as banking services, postal services, radio communication services, port, dock, harbour and airport services and undertakings and Production, refining, storage, supply and distribution of fuel and lubricants from the list of Essential Services as stipulated in the First Schedule of the IRA. MEF submitted that the proposed amendments would invariably affect the harmonious industrial relations in these industries which need to operate round the clock thereby affecting the national economy and competitiveness.

With regard to the proposed amendments to the Trade Unions Act 1959, MEF submitted that the proposals would lead to the establishment of omnibus unions and multiplicity of unions which would disrupt the existing harmonious industrial relations and strikes would no longer be confined to the workplace any more. The proposed amendments would drastically transform Malaysia’s industrial relations landscape to become confrontational which might lead to widespread social unrest and disruption to economic development and wellbeing.

The key issues concerning the proposed amendments to employment laws in Malaysia were also brought to the attention of the former Prime Minister YAB Tun Mahathir Mohamad in a joint letter with 23 industry organisations on 12 July 2019. In the joint letter, employers’ concerns on the proposed amendments were highlighted. Amongst the issues were: • Some aspects of the proposed amendments to employment laws did not take into consideration on business practicality and tend to be over-regulated amidst a very challenging business environment. • The proposed amendments to employment laws should take into account local labour market environment and balance the interest of employees and employers. Malaysia does not necessary need to hastily ratify every aspect of ILO Conventions as many developed countries have also not ratified all ILO conventions. In addition, the proposed amendments should not be initiated by the Labour Consistency Plan (LCP), but at our own pace.

22 ANNUAL REPORT 2019 Letter to Prime Minister on Why Malaysian Government Should Not Ratify ILO Convention 87 – Freedom of Association and Protection of the Right to Organise Convention, 1948 MEF submitted a letter to the former Prime Minister stating the rationale why Malaysian Government should not ratify ILO Convention 87 – Freedom of Association and Protection of the Right to Organise Convention, 1948 on 5 April 2019. Following were among the reasons why MEF objected the MoHR’s intention to ratify C87: • The proposed ratification of C87 would detrimentally impact the economy and potentially be harmful to the economic stability and harmonious industrial relations that Malaysia had enjoyed thus far. • The present industrial relations system in Malaysia promotes industrial harmony, national unity, trade unions development and national development. If Malaysia ratifies C87, it would promote multiplicity of trade unions and omnibus unions rather than the formation of trade unions based on establishment, trade, occupation or industry. C87 also enables any person including foreigners to form and to organise any activity in Malaysia to pursue their personal, political or subversive interests which could be a threat to national security and harmony. Eventually, the Government would not have any control of trade union activities which would be disastrous to Malaysia as a developing country. • The freedom of association and protection of the rights to organise are in fact provided in Article 10 of the Federal Constitution of Malaysia and are enforced to the Malaysian public through the abolition of Internal Security Act 1960 and the enactment of Peaceful Assembly Act 2011. • It was also pointed out that while MEF supported the promotion of fair and equitable labour standards, the labour standards should not be manipulated by superpowers in the form of trade barriers or for denying the competitive edge of developing countries such as Malaysia to continue to attract foreign or local investors.

Letter to Ministry of Home Affairs on Levy for Foreign Workers Who Have Worked for More Than 10 Years On 16 April 2019, MEF submitted a letter to the former Minister of Home Affairs YB Tan Sri Muhyiddin Md Yassin on the implementation date of lower extension levy fees for foreign workers who have worked beyond 10 years in Malaysia.

The former Minister of Finance YB Tuan Lim Guan Eng decided in a meeting on 20 February, 2019 to lower levies for the five sectors from 1 March 2019 to 29 February 2020. For the manufacturing, services and construction sectors, the levy would be reduced from RM10,000 to RM6,000, while for the agriculture and plantation sectors, the levy would be reduced from RM3,500 to RM2,000.

ANNUAL REPORT 2019 23 However, MEF was informed that a written notice dated 5 April 2019 at the Foreign Workers Division of Immigration Department, Putrajaya posted the same levy fees for foreign workers with more than 10 years’ service applied. MEF requested that the revised reduced rates of levy fees as announced by the former Minister of Finance to be implemented with effect from 1 March 2019.

Joint Letter on Issues Regarding Budget 2020 Announcement on Review of Minimum Wages and Proposed Amendments to Employment Act 1955 and Industrial Relations Act 1967 MEF together with 28 industry organisations met on 23 October 2019 to discuss on the announcement made by the former Minister of Finance YB Tuan Lim Guan Eng during the Budget 2020 presentation on review of National Minimum Wages and proposed amendments to Employment Act (EA) 1955 and Industrial Relations Act (IRA) 1967. Resulting from the meeting, a joint letter signed by the 28 industry organisations and MEF was submitted to the former Prime Minister YAB Tun Dr. Mahathir Mohamad on 1 November 2019 on employers’ concerns on the review of minimum wages and proposed amendments to Employment Act 1955 and Industrial Relations Act 1967.

It was highlighted that the tabling of proposed amendments to the IRA in Parliament by the former Minister of HR was on his volition and sidestepped the established stakeholders namely MEF and MTUC at NLAC. In addition, the recent announcement made by former Minister of Finance on review of minimum wages from RM1,100 to RM1,200 per month for bigger cities during Budget 2020 presentation and the increased of National Minimum Wages from RM1,050 to RM1,100 during Budget 2019 presentation appeared to ignore views and recommendations made by the National Wages Consultative Council.

On the increase of minimum wages from RM1,100 to RM1,200 for bigger cities, the industries were of the view that the increase of minimum wage rate would not solve the

24 ANNUAL REPORT 2019 problem of high cost of living but would compound the problem with increase prices of goods and services. It mentioned that the increase in minimum wages would largely benefit the foreign workers as the foreign workers would remit the increased wages back to their home countries, which would result a cash leakage for Malaysia. It was proposed that the Government should meet their GE14 promise by subsidising 50% of the increase in minimum wages. In addition, it was proposed that the Government to provide up to RM250 to local workers through “Bantuan Sara Hidup” to assist to cope with the increased in cost of living. It also recommended that to amend the definition of minimum wages from basic wages to gross wages as it would align to a productivity- linked wage system that would encourage growth and productivity.

Industry organisations unanimously were of the view that the Government should share the responsibility of sharing the cost increases should the maternity leave extended from 60 days to 90 days. The employers felt that it is not fair to push the entire cost of maternity leave on employers. It is only right that the Government shares the responsibility as it is common practice by other ASEAN countries and developed countries where maternity leave is borne by social security.

Joint Letter on Proposed Amendments to Employment Insurance System (EIS) Act 2017 On 11 November 2019, MEF together with the Malaysian Trades Union of Congress (MTUC) submitted a joint letter to the former Minister of Human Resource YB Tuan M. Kulasegaran on both parties’ concerns on the agreed proper procedure for tabling amendments to EIS did not comply with in the proper agreed manner.

Both parties were of the view that since the EIS Act is part of the labour laws in Malaysia, it should then follow that the MoHR should observe the agreed procedure of tabling the proposed amendments at the National Labour Advisory Council (NLAC) and its Technical Committee for discussion by the recognised tripartite partners. MEF and MTUC called for the MoHR to call a meeting of the NLAC with the proposed amendments to the EIS as part of its agenda.

On the proposal to increase the retirement age from 60 years to 65 years by MTUC, MEF supported the Government’s views not to increase the retirement age as it might create problems in the labour market as the new graduates might be unable to find jobs in the labour market. MEF commented that if the Government agreed to increase the retirement age, it need to consider re-employment policy for those employees aged above 60 to encourage them to remain in the workforce. MEF was of the view that these employees can be employed but on a voluntary basis in line with the company’s requirements and their contributions. MEF recommended that double tax incentives to be given to employers that employ employees beyond the age of 60 years and employees that continue to work beyond 60 years.

ANNUAL REPORT 2019 25 INTERNATIONAL & REGIONAL COOPERATIONS

108th International Labour Conference (ILC) The 108th Session of the International Labour Conference (ILC) held in Geneva, Switzerland from 10 – 21 June 2019 celebrated the ILO centenary. As the ILO celebrated its 100-year historic achievement, the ILC discussion focussed on the profound transformations under way in the world of work, including the evolving role of the ILO in building the future of work. The MEF Vice-President En A. Ramadass attended the Conference as the Employer’s Delegate together with the MEF Executive Director Datuk Hj Shamsuddin Bardan as the Employer’s Adviser and Substitute Delegate.

The important discussions held during the Conference centenary celebration include: • ILO Centenary Declaration for the Future of Work • ILO Convention on Violence and Harassment and its Recommendations • Work of the Committee on Application of Standards • Thematic Forums on child labour, freedom of association and collective bargaining, jobs and skills, sustainable transitions, technology pathways, multilateralism and business for decent work.

The ILO Committee of the Whole discussed the Centenary Declaration for the Future of Work. The Employers’ Group underlined the importance of this Centenary discussion

26 ANNUAL REPORT 2019 not only to reaffirm the ILO’s values and principles, but to set its short and long-term vision and objectives considering the transformative changes of the world of work and to define the priorities and actions for the ILO and its Members, with respect to tripartite governance and social dialogue. The declaration also provided a unique opportunity to substantially change the ILO’s often-biased approach towards employers and to make it more inclusive of them and their concerns. As a result of intense weeks of work and protracted positive engagement and the commitment of all delegates, the ILO Centenary Declaration for the Future of Works and its Resolution were adopted.

Among the elements featured in the Declaration were: • The need to reinvigorate the ILO (Preamble). • The unique recognition of the role of sustainable enterprises as generators of employment, and promoters of innovation and decent work (Preamble of the Declaration). • Harnessing the fullest potential of technological progress and productivity growth as one of the areas where the ILO must direct its efforts (Section II, A (ii)). • Placing a significant focus on skills. ILO needs to become a global leader in providing concrete key policy guidance to address skills gaps (Section II, A (iii)). • The need for the ILO to support the role of the private sector as a principal source of economic growth and job creation by promoting an enabling environment for entrepreneurship and sustainable enterprises, in order to generate decent work, productive employment and improved living standards for all (Section II, A (ix)). • Promoting sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all (Section III, C).

At the discussion of Committee on Violence and Harassment in the World of Work, the debate on the draft Convention and Recommendation on Violence and Harassment was very intense and emotional as the Employers’ group aimed to produce a document that is balanced, with the potential for widespread ratification and implementation which would address many of the employers’ most significant concerns. This included call for separate definitions or single concept for violence and harassment, recognize any employer who has been subject to violence and harassment such as during an industrial action (occupation of facilities) would be able to present a complaint, observation under the ILO supervisory system, limit the employers’ responsibilities according to their degree of control at national level and limit the employers’ responsibilities related to situations of domestic violence.

Based on the discussion, the ILC adopted the Violence and Harassment Convention, 2019 (No. 190) and its Recommendations. The Convention provides a framework for action and an opportunity to shape a future of work based on dignity and respect, free from violence and harassment. The right of everyone to a world of work free from violence and harassment has never before been clearly articulated in an international treaty. It also recognizes that such behaviours can constitute a human rights violation or abuse. These

ANNUAL REPORT 2019 27 instruments reaffirm the ILO’s crucial standard-setting role. They are tangible evidence of the enduring value and strength of social dialogue and tripartism at national level.

During the General Discussion on Committee of Experts on the Application of Conventions and Recommendations (CEACR Report), the Employers’ Group highlighted some positive developments in the regular standards supervision and provided some proposals to continue improving the transparency, effectiveness, relevance, and tripartite governance of standards-supervision. The Employers’ group also recalled for more strict legal assessments of compliance with ratified Conventions, particularly, the supervision by the Committee of Experts of the “right to strike” in the context of Convention 87.

The discussion on the General Survey on Social Protection Floors Recommendation 2012 (No. 202) shed light on the importance of the topic in view of its supportive function for the development of productive economies and stable and cohesive societies. The Employers’ group emphasised that although the State had overall responsibility for setting social protection floors, room and incentives should be left for private pension funds. This would also help to assure the financial sustainability of many social protection systems, which are under threat in many countries. The Employers’ group also pointed out the need for social protection floors to be targeted to persons in need and situation requiring social protection. The Employers’ were of the view that benefits under social protection floors had an important steering function in helping overcome poverty, vulnerability and social exclusion.

The 108th ILC also held Thematic Forums that provided an opportunity to stimulate debate among Conference participants, heads of international organisations, key figures from business and industry and from trade unions, policymakers, global experts, representatives of civil society and academia and young people with inspiring, thought- provoking perspectives on the future of the world of work. The seven themes of the Thematic Forums were on child labour, freedom of association and collective bargaining, jobs and skills, sustainable transitions, technological pathways, multilateralism and business for decent work.

Memorandum of Understanding (MoU) on Decent Work Country Programme for 2019 – 2025 During the Centenary session, on 19 June 2019, the Malaysian delegation headed by the former Minister of HR YB Tuan M. Kulasegaran signed a Memorandum of Understanding (MoU) on Decent Work Country Programme for 2019 – 2025 with the ILO. The ILO was represented by the ILO’s Assistant Director-General and Regional Director for Asia and the Pacific Ms. Tomoko Nishimoto. The MoU was also signed by MEF Vice-President En A. Ramadass and the Secretary General of MTUC En J. Solomon. The first Decent Work Country Programme for 2019 – 2025 for Malaysia sets to promote decent work for sustainable development and accelerate progress towards the Sustainable Development Goals (SDG).

28 ANNUAL REPORT 2019 Speaking at the ceremony as the Malaysian employers’ representatives, En A. Ramadass stated that MEF is committed to pursue effective social dialogue with the social partners in the spirit of tripartism and strongly believed that working collectively and in harmony, employers, as key stakeholder in the creation of quality jobs and opportunities, fulfil decent and productive work for all. The right policy mix that enables the market economy to function effectively and the private sector to flourish would enhance productivity and achieve competitiveness in a rapidly evolving economy.

The MoU sets to promote Decent Work for sustainable development and accelerate progress towards the Sustainable Development Goals (SDGs). The Decent Work Country Programme (DWCP) provides a five-year framework for cooperation between the ILO and the national constituents. It plans for a strengthened ILO engagement in Malaysia in support of the national implementation of the Sustainable Development Goals (SDGs).

The Malaysia DWCP prioritizes three integrated areas of work: • Rights at work: Protecting and promoting rights at work; • Future of work: Strengthening national capacities to meet the needs of current and future work; • Labour migration: Strengthening labour migration governance.

MEF – ILO Workshops on Recruitment and Employment of Foreign Workers in SMEs – Malaysia In order to present the findings of the MEF Survey on Employment of Foreign Workers in SMEs Sector in Malaysia conducted in 2018 and to engage with SMEs on the topic of fair recruitment, MEF conducted a series of workshops in collaboration with Global Business Network on Forced Labour, ILO on “Recruitment and Employment of Foreign Workers in SMEs – Malaysia”. The Workshops also aimed to address some of pertinent issues relating to recruitment and employment of foreign workers faced by employers of SMEs. A total of five workshops were organised in Kuala Lumpur on 4 July 2019, in Bahru on 8 July 2019, on 11 July 2019, Kota Kinabalu on 15 July 2019 and Kuching on 17 July 2019. 306 participants representing SMEs from both manufacturing and non manufacturing sectors attended the workshops throughout Malaysia.

ANNUAL REPORT 2019 29 The workshops brought together members of MEF to raise awareness on the issues related to the recruitment and employment of foreign workers, provide practical guidance, collect and share best practices and obtain SME inputs on the current foreign workers policy. The Workshops facilitated the dissemination of the ILO General Principles and Operational Guidelines on Fair Recruitment and the definition of recruitment fees and related costs and the ILO-MEF towards business responsibility on preventing and addressing forced labour in Malaysia.

MEF Executive Director Datuk Hj Shamsuddin Bardan presented on “Highlights of MEF Survey on Employment of Foreign Workers in SMEs – Malaysia”. The ILO Programme Technical Officer, Global Business Network on Forced Labour, ILO Ms Laura Greene presented on “Fair Recruitment: ILO General Principles and Operational Guidelines for Fair Recruitment and Definition of Recruitment Fees and related Costs” and “Importance of International Standards and Industry Codes of Conduct on Recruitment and Employment of Foreign Workers for SMEs in the Supply Chain”.

Following the presentations, there were panel discussions by representatives from the Government agencies, ILO and MTUC at each Workshop. The panel discussions were moderated by Datuk Hj Shamsuddin Bardan. Participants were divided into sectoral groups and provided valuable insights into the challenges and issues faced by employers in the management of foreign workers in the SMEs. The invited panellists for workshop in Kuala Lumpur were: • Mr Lee Dong Eung, Senior Specialist on Employers’ Activities, ILO • En Shahabuddin Abu Bakar, Principal Assistant Secretary, Labour Policy Division, MoHR • En Khairil Shah Mat Lazim, Deputy Under Secretary, Foreign Workers Management Division, Ministry of Home Affairs (MoHA) • En K. Somasundram, Assistant Secretary – Education, MTUC

The invited panellists for workshop in Johor Bahru were: • Ms Laura Greene, Programme Technical Officer, Global Business Network on Forced Labour, International Labour Organization (ILO) • Pn Kala Thangarajoo, Senior Assistant Director, Foreign Workers Division, MOHR • Pn Nurhany Rifhan Ibrahim, Principal Assistant Secretary, National Strategic Office of Council for Anti-Trafficking in Persons (NSO MAPO) • En Muhammad Zulfadlee Thye Abdullah, Project Coordinator, MTUC

30 ANNUAL REPORT 2019 The invited panellists for workshop in Penang were: • En Kevin Geh Kien Meng, Deputy Undersecretary, NSO MAPO • Pn Kala Thangarajoo, Senior Assistant Director, Foreign Workers Division (MoHR) • En S. Ravindran, Chairman, MTUC Penang Division • Ms Laura Greene, Programme Technical Officer, Global Business Network on Forced Labour, ILO • En Khairil Shah Mat Lazim, Deputy Undersecretary, Foreign Workers Management Division, MoHA

The invited panellists for workshop in Kota Kinabalu were: • Ms Laura Greene, Programme Technical Officer, Global Business Network on Forced Labour, ILO • En Walter Raymond, Assistant Director of Labour Department, Sabah of MoHR • En Kevin Geh Kien Meng, Deputy Undersecretary, NSO MAPO • Pn Catherine Jikunan, Secretary of MTUC, Sabah

The invited panellists for workshop in Kuching were: • En Walter Raymond, Assistant Director of Labour Department, Sabah of MoHR • En Kevin Geh Kien Meng, Deputy Undersecretary, NSO MAPO • En Andrew Lo Kian Nyan, Secretary of MTUC, Sarawak

ANNUAL REPORT 2019 31 ITC – ILO Workshop on “Maximising the Role of ACE and SAFE Employers and Business Members’ Organizations in Fostering Safe and Productive Migration” On 21 – 22 November 2019, 28 representatives of Employer Organisations (EOs) from 14 countries participated in the International Training Centre of the International Labour Organisation (ITCILO) regional programme on “Maximising the Role of ASEAN Confederation of Employers (ACE) and South Asia Federation of Employers (SAFE) Employers and Business Members’ Organizations in Fostering Safe and Productive Migration” which was held at MEF Headquarters, Petaling Jaya. The two-day programme was a collaboration programme between ITC-ILO, the Dutch Employer Cooperation Programme (DECP), South Asian Forum of Employers (SAFE) and ACE.

The workshop aimed to explore the key issues and needs of the employers’ organisations (EOs) in the South Asian Forum of Employers (SAFE) and the ASEAN Confederation of Employers (ACE) in the field of migration. The discussions focused upon key trends on migration and explored the main challenges and opportunities to promote labour migration that safeguard workers and built on their skills to boost productivity and make business thrive.

The Workshop was the first meeting of SAFE and ACE EOs to discuss migration priorities and needs and offered the platform to exchange and to coordinate their messages and positions. The meeting also provided the opportunity to consolidate the position of the employers with the view to expand the discussion in future dialogues with trade unions, government officials and other stakeholders.

The programme was officiated by the President of ACE Mr Ekasit Kunanantakul, President of SAFE Mr Majyd Aziz, the Adviser of International Organisation of Employers (IOE) Ms Akustina Morni and MEF Executive Director Datuk Hj. Shamsuddin Bardan. MEF Council Member Assoc. Prof. Dr Michael Chiam Tow Hui also participated in the Workshop.

32 ANNUAL REPORT 2019 Among the participants who attended the Workshop were executive directors from SAFE and ACE EOs and their representatives from Bangladesh Employers Federation (BEF), Cambodian Federation of Employers and Business Associations (CAMFEBA), Pacific Islands Private Sector Organisation (PIPSO), The Employers’ Federation of India (EFI), Confederation of Indian Industry (CII), The Indonesian Employers’ Association (APINDO), Lao National Chamber of commerce and Industry (LNCCI), Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI), Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Employers Federation of Pakistan (EFP), Philippine Exporters Confederation, Inc. (PHILEXPORT), Employers Confederation of the Philippines (ECOP), The Employers’ Federation of Ceylon (EFC), Employer’s Confederation of Thailand (ECOT) and Vietnam Chamber of Commerce and Industry (VCCI).

International Organisation of Employers (IOE) MEF Vice-President En A. Ramadass and MEF Executive Director attended the 2019 Session of IOE General Council Meeting which was held in Geneva, Switzerland on 9 June 2019. The meeting was chaired by the IOE President Mr Erol Kiresepi. In his opening remarks, Mr Kiresepi informed the General Council of two important tasks. The first task was to conduct the official, administrative business, including deciding on the admission of new members and setting the future direction and priorities of the organisation. The second task would be to take advantage of the opportunity to share views on issues of common concern among employer organisations of 150 countries.

At the meeting, the IOE Secretary-General Mr Roberto Suárez Santos presented an overview of the highlights of IOE’s 2018 – 2019 activities, the influence and impact, as well as the proposed Work Plan for the year ahead. He highlighted activities related to specific projects such as the IOE-EU partnership project and the work on international labour migration. Mr Roberto also informed that the IOE membership had grown to 156 members in 148 countries. In addition, the IOE’s visibility was growing in other forums such as in the business and human rights arena such as being a networking partner of the B20 Employment

ANNUAL REPORT 2019 33 and Education Task Forces, the Global Forum for Migration and Development and the European Union. He also briefed members on the IOE planned events to mark the IOE Centenary celebration in 2020 which would kick off in March 2020 such as the IOE Centenary Manifesto and events around UN occasions.

At the meeting, the General Council adopted the amendments to the IOE Statutes as set out in the proposal, which had been approved by the Management Board at its 22 March 2019 Session and subsequently circulated to the members for any comments or questions.

Following the meeting, the IOE held its 2019 General Council High-Level Panel Discussion on the theme of “Employers’ organisations of the Future: being in business tomorrow”. The Discussion was moderated by the IOE Secretary-General Mr Roberto Suárez Santos. Four speakers were invited to deliver presentations which were in line with the IOE- ILO ACT/EMP report entitled “Changing business and opportunities for employer and business member organizations”.

ASEAN Confederation of Employers (ACE) The 44th ACE Chief Executive Officers’ (CEOs) and Board of Directors (BODs) Meetings were held in Manila, Philippines on 6 April 2019. MEF was represented by MEF Vice-President En A. Ramadass and MEF Executive Director Datuk Hj Shamsuddin Bardan. The meetings were attended by the ACE members comprised of Employers’ Confederation of The Philippines (ECOP), Employers Confederation of Thailand (ECOT), Employers’ Association of Indonesia (APINDO), Singapore National Employers Federation (SNEF), Cambodian Federation of Employers & Business Association (CAMFEBA), the Lao National Chamber of Commerce and Industry (LNCCI) and the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI).

At the CEOs meetings, the ILO Director of the Bureau for Employers’ Activities (ILO ACT/EMP) Mr Wade Bromley and Senior Specialist on Employers’ Activities Mr Lee Dong Eung provided updates on the ILO ACT/EMP programmes and activities for EOs in ASEAN.

The CEOs meeting discussed several issues which included the ACE Financial Report, report of the ILO Governing Body Meetings, the result of the employers’ side meeting which was held on 3 April 2019, outcomes from the second ACE – ATUC Bilateral Meeting which was held on 4 – 5 April 2019 and the invitation to Vietnam Chamber of Commerce and Industry (VCCI) to join the ACE membership.

34 ANNUAL REPORT 2019 At the ACE BODs meeting, the recommendations from the 44th ACE CEOs meeting which were held earlier were discussed. The Meeting also discussed on the election of ACE Presidency for 2019 – 2022 term, ACE Financial Report, ACE Position on the Future of Work, the affiliation of MNCs to ILO bypassing the national EOs and regional EOs, establishment of a regional employers’ platform – information and resource centre. Country reports from all ACE members were presented at the meeting to update members on the latest economic conditions and industrial relations situation in the ASEAN region.

The meeting also resolved that ACE appeal to the IOE Management Board to reconsider the inbuilt increase of the IOE subscription fees. On the ACE secretariat for the term 2019–2022, the meeting agreed that the ACE secretariat would be passed over to ECOT based on the agreed rotation scheme.

Following the ACE 44th BODs meeting, a ceremony to symbolise the handover of ACE presidency from ECOP to ECOT for 2019 – 2021 term was held. The Immediate Past President of ACE and President Emeritus of ECOP Mr Ancheta K. Tan handed over the ACE flag to the new President of ACE and President of ECOT Mr Ekasit Kunanantakul. The Secretariat is now based in ECOT and is headed by the Secretary General Ms. Siriwan Romchatthong.

ANNUAL REPORT 2019 35 Second Joint Dialogue between ASEAN Trade Union Council and ACE Prior to 44th ACE CEOs and BODs meeting, ACE members participated in the Second Joint Dialogue between the ASEAN Trade Union Council and ACE on 4 – 5 April 2019 in Manila, Philippines. This meeting was held as a follow-up of the first Joint Dialogue between ATUC and ACE in Bangkok in March 2016. During the meeting, both ATUC and ACE emphasised the value of holding such joint dialogues to build trust, address emerging issues, and develop and put forward common positions on labour migration. 28 participants from the ACE members attended the Dialogue session. MEF was represented by MEF Vice-President En A. Ramadass and MEF Executive Director Datuk Hj Shamsuddin Bardan.

The Joint Dialogue discussed the recent regional and global processes and agreements and reviewed the progress of the 2016 agreement and lessons learned from its implementation. The meeting deliberated on the ASEAN Consensus on the Protection and Promotion of the Rights of Migrant Workers, 2017 and its Action Plan, 2018 and identified areas of shared commitments and actions.

The second Joint Dialogue was supported by the ILO Bureau for Workers’ Activities (ILO ACTRAV) and the ILO Bureau for Employers’ Activities (ILO ACT/EMP) and the ILO/ TRIANGLE in ASEAN programme, supported by the Australian Department of Foreign Affairs and Trade (DFAT) and the Government of Canada (GAC).

Confederation of Asia-Pacific Employers The 43rd CAPE Executive Board meeting was held on 17 June 2019 at Geneva, Switzerland. The Deputy Treasurer of CAPE En A. Ramadass chaired the meeting on behalf of Tan Sri Azman Shah Dato’ Seri Haron, CAPE Chairman. The meeting was also attended by the IOE Secretary-General Mr Roberto Suárez Santos, IOE Policy Adviser Ms Akustina Morni, Director Bureau for Employer’s Activities (ILO ACT/EMP) Ms Deborah France-Massin and Senior Adviser of Bureau for Employer’s Activities (ILO ACT/EMP) Ms Tugschimeg Sanchir as observers.

Following the CAPE Executive Board meeting, the 14th CAPE General Council meeting was held. 26 members representing the employers’ organisations (EOs) in the Asia-Pacific region attended the meeting. Among the agenda items of the meeting were the CAPE Audited Accounts of the year ended 31 December 2018, proposed activities and budget for 2019 – 2020, membership subscription fee and outstanding subscription, election of officers for 2019 – 2021 and report of CAPE Secretary-General on CAPE activities in 2018.

Based on inputs from members on the outstanding membership fee of some CAPE members, the meeting decided to provide and extension of membership for one year to those members.

36 ANNUAL REPORT 2019 As the current office bearers of CAPE term would end in 2019, the Chairman reminded members to elect for the new office bearers for 2019 – 2021 term. Based on CAPE constitution, the Chairmanship and the Secretariat would be based on the election from CAPE members whilst members were informed that the Vice-Chairpersons would be nominated by each sub-region (South Asia, ASEAN, Pacific and East Asia). For the term 2019 – 2021, the Council re-elected the current chairman and decided the secretariat remain with MEF.

CAPE ITUC – AP Annual Meeting The CAPE ITUC-AP Annual Meeting was held on 11 June 2019 in Geneva, Switzerland. The Meeting which was hosted by the International Trade Union Confederation for Asia Pacific (ITUC-AP) had chosen “The Bali Declaration” as this year’s topic for discussion. “The Bali Declaration” was adopted at the 16th Asia and the Pacific Regional Meeting of the ILO (December 2016).

ANNUAL REPORT 2019 37 CAPE was represented by CAPE Deputy-Treasurer En A. Ramadass and CAPE Secretary General Datuk Hj Shamsuddin Bardan. Other CAPE delegates to the meeting included Mr Tsuneyuki Tanaka Keidanren (Japan Business Federation), Mrs Penny Liu (China Enterprise Confederation), Mr Kirk Hope and Mr Vaughan Renner (Business New Zealand) and Ms Baljinnyam Chinzorigt of Mongolian Employers’ Federation (MONEF).

Delegates of EOs representing CAPE and from unions representing ITUC-AP from Asia Pacific region participated actively in the deliberations. The meeting exchanged views and ideas on the progress of the follow-up to the Bali Declaration. It was agreed that there was the need for ILO to come up with programmes to be implemented at the national and regional levels as set out in the Declaration.

The Association for Overseas Industrial Human Resource Development (AOTS) On 21 – 25 January 2019, MEF participated in the AOTS Workshop of Joint Study on “Globalization and New Technologies – How do globalization and new technologies such as AI and RPA change companies’ competitive environments and the labour markets?” The joint workshop was held in Phnom Penh, Cambodia to identify and discuss the challenges faced by globalization and the adoption of new technologies and to share among the participants the best practices and solutions to overcome these challenges.

37 representatives from Employers Organisations (EOs) from the Asia Pacific region attended the Workshop. MEF was represented by MEF Executive Director Datuk Hj Shamsuddin Bardan and MEF Senior Manager – Research and Information Cik Lee Yoke Wan. Among the EOs that attended the Workshop were Bangladesh Employers Federation (BEF), Cambodian Federation of Employers and Business Associations (CAMFEBA), China Employers Confederation (CEC), All India Organization of Employers (AIOE), Employers’ Federation of India (EFI), The Employers’ Association of Indonesia (APINDO), Korea Employers’ Federation (KEF), Lao National Chamber of Commerce and Industry (LNCCI), Employers Confederation of the Mexican Republic (COPARMEX), Mongolian Employers’ Federation (MONEF), The Republic of Union of Myanmar Federation of Chambers of

38 ANNUAL REPORT 2019 Commerce & Industry (UMFCCI), Federation of Nepalese Chambers of Commerce & Industry (FNCCI), Employers’ Federation of Pakistan (EFP), Employers Confederation of the Philippines (ECOP), Singapore National Employers Federation (SNEF), The Employers’ Federation of Ceylon (EFC), Employers’ Confederation of Thailand (ECOT) and Vietnam Chamber of Commerce and Industry (VCCI).

The keynote paper was presented by Prof. Yutaka Nakashima who highlighted the global market trends and the implications on human resource management. He emphasised that the world, the investors and other stakeholders are increasingly interested to be recognised as a good corporate citizen with solid business operation. Under the Environment, Society and Governance (ESG) agenda, the issues identified include: • inclusion and diversity • human capital development • safety and health • proper labour management • supply chain labour standard

During the workshop sessions, participants from the EOs presented their country experience on the current situation of globalization and the use of new technologies and highlighted the problems, challenges and opportunities from the viewpoint of the labour markets and human resource management. The roles and policies of employers’ organizations in guiding companies were also shared among the EOs.

Following the presentations, the lively discussion among the participants focussed on these areas: • Labour mobility • Expansion of multinational companies • Drastic changes of labour environments • Diversity such as a wide variety of background of employees and forms of employment • Substitution of AI and robots for manpower • Talent management and human resource development by AI

ANNUAL REPORT 2019 39 European Commission (EU) Policy Forum on Development 3rd Asia Regional Meeting The 3rd Asia Regional Meeting of European Commission (EU) Policy Forum on Development was held on 24 – 26 September in Kathmandu, Nepal. 80 representatives of civil society organisations (CSOs), local authorities (LAs), and representatives of international organisations, national governments and the EU gathered to discuss different relevant aspects of the global agenda and the progress made in the implementation of the Sustainable Development Goals (SDGs). MEF Vice-President Tn Hj Abdul Wahab Abu Bakar represented MEF at the meeting.

On the regional progress towards the Global Development Agenda, it was found that almost all countries have in place some form of national structures in line with the 2030 Agenda and most have established separate bodies to monitor the SDGs. The meeting stressed that while the SDGs focus on the national level, interactions and participation at the regional level provide a space for sharing and discussion.

A draft communiqué summarising the main discussions with recommendations was presented by CSOs and LAs during the closing session. Among the recommendations submitted for the EU’s uptake were: • Increase support to enable mechanisms for more meaningful engagement at grassroots level. • Simplify procedures and requirements at this level for accessing and reporting on funding support. • Increase support for data gathering, monitoring and reporting on the SDGs with a view to documenting and facilitating the replication of good practices, especially at the regional and sub-national levels. • Continue to provide spaces for learning and sharing on SDGs with more inclusive participation of constituencies and a mechanism for follow-through and feedback on joint commitments.

40 ANNUAL REPORT 2019 12th ASEAN Forum on Migrant Labour The 12th ASEAN Forum on Migrant Labour which carried the theme “Future of Work and Migration” was held on 25 – 26 September 2019 in Bangkok, Thailand. Representatives of the governments, employers’ organisations, workers’ organisations, and civil society organisations from ASEAN Member States, the ASEAN Secretariat, International Labour Organization (ILO), International Organization for Migration (IOM), United Nations Entity for Gender Equality and the Empowerment of Women (UN Women), ASEAN Confederation of Employers (ACE), ASEAN Trade Union Council (ATUC), ASEAN Services Employees Trade Union Council (ASETUC), Task Force for ASEAN Migrant Workers (TFAMW), North South Initiative and Migrant Forum Asia participated in the Forum. Representatives of Department of Foreign Affairs and Trade (DFAT) of Australia, Global Affairs Canada, and Swiss Agency for Development and Cooperation participated as observers. MEF Senior Manager – Employer Affairs En Mohamad Zakri Baharudin attended the Forum representing ACE.

The Forum is a platform for broad- based discussions on migrant labour issues under the auspices of the ASEAN Committee on the Implementation of the ASEAN Declaration on the Protection and Promotion of the Rights of Migrant Workers (ACMW). The participants acknowledged that, as highlighted in the ILO Centenary Declaration for the Future of Work, the world of work is changing and will continue to change due to technological innovations, demographic shifts, environmental and climate change, and globalisation. These developments bring opportunities and challenges to migrant workers who will be affected by the future of work at different levels depending on the occupations. Migrant workers in some occupations may be at risk of being replaced by automation, while those in occupations in high demand such as care work will not be easily replaced. The participants also made recommendations on protection of migrant workers and employability of migrant workers.

ANNUAL REPORT 2019 41 MEF CONFERENCES & SEMINARS

MEF Industrial Relations Conference 2019 MEF held its annual Industrial Relations Conference at Hotel Istana, Kuala Lumpur on 17 – 18 April 2019. The Conference provided the platform to update participants on issues dealing with cases of fraud at the workplace, the detection of cyber fraud and managing risks to employers, employers’ liability related to SOCSO fraud and false claims, IT Forensics for investigation of fraud and alternative dispute resolution in resolving workplace disputes. A total of 140 participants of MEF members and invited guests comprising of human resources and industrial relations practitioners shared learning and experiences on the latest industrial relations and human resource developments. The former Minister of Human Resources YB Tuan M. Kulasegaran was invited as the Guest- of-Honour and delivered the keynote address of the Conference.

MEF President Tan Sri Azman Shah Dato’ Seri Haron in delivering his welcome speech, pointed out that in 2019, as the recognised employers’ body in Malaysia, MEF was very much involved in the ongoing debate on the proposed labour law amendments by the MoHR which they hoped to be completed by end 2020. MEF was of the view that the proposals by MoHR to align Malaysia’s labour laws with various ILO core conventions – in particular Convention 87 on Freedom of Association and Protection of the Rights to Organise would detrimentally impact the harmonious industrial relations and economic stability. He stressed that the ratification of Convention 87 would result in multiplicity of trade

42 ANNUAL REPORT 2019 unions and omnibus unions, rather than trade unions that are based on establishment, trade, occupation or industry. MEF called the Government not to ratify Convention 87 as this would pose a very serious threat to the industrial harmony in Malaysia as well as the national security.

Tan Sri Azman Shah highlighted that the freedom of association and protection of the rights to organise is provided under Article 10 of Federal Constitution, wherein freedom of speech, assembly and association is enshrined. He stated that the current labour legislations provide a framework of sound industrial relations system under which the employers, workers and their trade unions could regulate ourselves through the process of peaceful negotiations, conciliations and arbitration. In addition, the Code of Conduct for Industrial Harmony that was signed by the tripartite partners 44 years ago on 9 February 1975 had set out the machinery to promote good industrial relations and industrial harmony in Malaysia MEF was of the view that the proposed ratification of Convention 87 is mainly based on the Labour Consistency Plan (LCP) under the defunct Trans-Pacific Partnership Agreement (TPPA) which aimed to align Malaysia’s employment laws with the core conventions of the ILO. These barriers would erode the competitive edge of developing countries such as Malaysia which needs to continue to attract investors.

The former Minister of Human Resources, YB Tuan M. Kulasegaran in his keynote address recognised that MEF is a very important stakeholder at various platforms of Government especially in the area of human resources development and management. He also highlighted that MEF had provided valuable services to its members in representation in the Labour and Industrial Courts, conciliation, as well as training on human resources development and management and labour legislations.

YB Tuan M. Kulasegaran in his speech pointed out the MoHR’s initiatives to improve the labour standards and protections in order to provide a fair treatment to workers as well as to ensure to provide a conducive environment for businesses to grow and prosper. The initiatives include making it compulsory for employers to provide insurance coverage for foreign workers under the Employment Injury Scheme of the Social Security Organization (SOCSO) which started on 1 January 2019.

ANNUAL REPORT 2019 43 The Conference lined up the following distinguished speakers from both the public and the private sectors on the following topics: • En Wong Kian Jun, Partner – Employment & Administrative Law, Shearn Delamore & Co. on “Detecting & Addressing Pre/ During Employment Fraud at the Workplace”. • Datuk Hj Shamsuddin Bardan, MEF Executive Director on “Cases on Fraud @ Workplace – Pre/During Employment” • En Mohamed Fadzlee Sulaiman, Cyberdef Manager, Digital Forensics of Cybersecurity Malaysia on “IT Forensics Investigation of Fraud at the Workplace – What Can Be Done” • En Hasnol Mohd Hussein, Head of Anti-Fraud & Investigation Internal Audit Department, Social Security Organisation (SOCSO) on “Liability of Employers & Employees for SOCSO Fraudulent and False Claims” • The Honourable Deputy Chief Justice Ambeng Kandakasi, Supreme and National Courts of Justice of Papua New Guinea on “Alternative Dispute Resolution (ADR) – Mediation to Resolve Workplace Disputes” Two panel discussions were held at the Conference which featured representatives from the tripartite constituents. The first day panel discussion which was moderated by MEF Vice-President En A. Ramadass deliberated on “Effective Handling of Pre & During Employment Fraud Issues”. The panellists were: • Dato’ Abdul Halim Mansor, Malaysian Trades Union Congress (MTUC) President • Datuk Hj Shamsuddin Bardan, MEF Executive Director • En Rhymie Mohd Ramli, Senior Assistant Director, Enforcement Division, Department of Labour, Peninsular Malaysia

The second panel discussion was moderated by Datuk Hj Shamsuddin Bardan focussed on “Managing Workplace Disputes – Is Alternative Dispute Resolution a Viable Option?”. The panellists were: • En Goh Seng Wing, MEF Senior Consultant – Industrial Relations

44 ANNUAL REPORT 2019 • The Honourable Justice Ambeng Kandakasi, CBE, Supreme and National Courts of Justice of Papua New Guinea • YA Dato’ Fredrick Indran X.A. Nicholas, Chairman of Industrial Court, Malaysia

MEF National Conference 2019 The MEF National Conference 2019 which was held on 8 – 9 October 2019 at Holiday Villa Subang was special as it coincided the 60th MEF Anniversary and the Centenary Celebration of International Labour Organisation (ILO). With the theme “Future of Work - Challenges & Opportunities”, the Conference addressed issues and challenges faced by employers in dealing with the future of work and new forms of employment relationships. The Conference which was attended by 170 participants and invited guests also focussed on identifying the potential trends in “jobs lost” (jobs displaced by automation), “jobs gained” (job creation driven by economic growth, investment, demographic changes, and technological innovation), and “job changes” (jobs whose activities and skill requirements change from partial automation) which impact the workforce by exploring several scenarios of automation adoption and job creation trends in the near future.

The ILO Assistant Director-General and Regional Director for Asia and the Pacific Ms. Tomoko Nishimoto was invited as the Guest-of-Honour to officiate the Conference. At the Conference, MEF launched new publications entitled “MEF Practical Guide to Human Resource Management: 2nd edition” whilst the ILO also launched their publications entitled “Business

ANNUAL REPORT 2019 45 Responsibility on Preventing and Addressing Forced Labour in Malaysia: A Must- Read Guide for Malaysian Employers” and “Business Responsibility on Preventing and Addressing Forced Labour in Malaysia: Training Facilitator’s Guide”. The ceremony was witnessed by MEF President Tan Sri Azman Shah, MEF Vice-Presidents En A. Ramadass and Tn Hj Abdul Wahab Abu Bakar and MEF Executive Director Datuk Hj Shamsuddin Bardan. In the welcome address, MEF President Tan Sri Azman Shah stated that the decision to coincide the ILO centenary celebration with MEF 60th Anniversary to reflect the strong relationship between MEF and ILO. The President emphasised the importance of tripartism in the formulation of labour policies and standards. Tripartism had paved the way for Malaysia’s economic and development. It added value in the world of work and as a potent antidote to some of those negative trends in public and political discourse.

On the Conference’s theme, the President highlighted that technology, greening of jobs and climate changes had been identified as the biggest catalysts for transformation that had huge impact on the way of life and work. These changes brought an uncertain future as well as opportunities. Based on the past three stages of industrialisation, for every job that was eliminated there were multiples of new jobs that would be created in its place. He further stated that to ensure a smooth transition, there needs to be a conducive eco- system that would enable employers to embrace the changes and for the workforce to acquire the necessary knowledge and skills.

The President also mentioned that at the heart of Industrial Revolution (IR) 4.0 is a set of rapidly evolving and converging technologies. Technology is pushing the boundaries of human kind and enhances performance through artificial intelligence and autonomous robots. Digitalisation of operation and production processes are important to build direct links to end customers and produce innovative and customised products and services. Tan Sri Azman Shah stated that these aspirations could be achieved through facilitating the transformation of industry to the next technological frontier and raising the economic well-being of Malaysians. The ILO Assistant Director-General and Regional Director for Asia and the Pacific Ms. Tomoko Nishimoto in her keynote

46 ANNUAL REPORT 2019 address expressed her gratefulness on the MEF’s collaborations with ILO, fostering good employment practices and social dialogue and believed that MEF would continue to play a significant role in Malaysia’s economic and social development as well as in the region.

She explained that the ILO’s centenary declarations were more focused on the mounting challenges because it came at a time when the lives of millions of people around the world are still experiencing inequalities in multiple ways and suffering from injustice. She further stated that the ILO Centenary celebrations evolved around the discussion on how to overcome the challenges of transition and seize the opportunities resulting from the rapid technological innovation, globalization, demographic shifts and climate change. The ILO firmly believed that the future of work is not determined by technology or any other disruptive changes, but our future of work is determined by our capacity and our will to act upon it.

The Centenary Declaration calls for a human-centred approach to the future of work, an agenda that clearly recognizes that human welfare is the ultimate aim and objective of all public policies. Ms. Tomoko also expressed that as the pace of these changes accelerate, policymakers, businesses and Employer and Business Membership Organizations (EBMOs) need to innovate, adjust and become more flexible in order to harness opportunities in order to remain relevant in the rapidly changing business environment.

The Conference featured distinguished local and international speakers on the following topics: • Tn Hj Mohd Farid Shah Mohd Basir, Chief Human Capital Officer of Telekom Malaysia Berhad and MEF Council Member on “Agile HR: Empowering HR Professionals” • Datuk Hj Shamsuddin Bardan, MEF Executive Director on “Future of Work: Issues and Challenges Facing Malaysian Employers” • Mr Wade Bromley, ILO Senior Employer Specialist on “New Technology and Its Impact on Business and Employment” • Ms. Anna Stelmaszczyk, Head of Business Development, KLASPAD Plc (UK) on “Blockchain Technology for HR/IR Transformation” • Prof. Sattar Bawany, CEO of Centre for Executive Education and C-Suite Master Executive Coach (CEE Global) Singapore on “Aligning Leadership Transformation for Future of Work”

ANNUAL REPORT 2019 47 Two panel discussion sessions were held at the Conference. The first panel discussion which was moderated by Datuk Hj Shamsuddin Bardan discussed on “Future of Work and Decent Work Agenda”. The invited panellists were: • Dr. Ridzuan Kushairi Mohd Ramli, Principal Assistant Secretary, Human Resources Policy Division, MoHR • En Luqman Ahmad, Deputy Director of Human Capital Development Division, Ministry of Economic Affairs (MEA) • Dato’ Abdul Halim Mansor, MTUC President • Mr Wade Bromley, ILO Senior Employer Specialist

The second day panel discussion which was moderated by MEF Vice-President En A. Ramadass deliberated matters on “Impact of the Proposed New Legislations”. The panellists were: • Pn Meriam Mohd Noor, Principal Assistant Secretary, Labour Policy Division, MoHR • Dato’ Abdul Halim Mansor, MTUC President • Datuk Hj Shamsuddin Bardan, MEF Executive Director

MEF Workshops on “Proposed Amendments to Employment Laws” MEF conducted a series of workshops on “Proposed Amendments to Employment Laws” in 2019 with the objective to update participants on the proposed amendments on employment laws including Employment Act 1955, Industrial Relations Act 1967, Trade Unions Act 1959, Workers’ Minimum Standard of Housing and Amenities Act 1990, and Occupational Safety and Health Act 1994. The workshops which were attended by 250 participants were held on 11 March 2019 in Subang Jaya, 26 March 2019 in Penang, 1 April 2019 in Johor Bahru and 25 April 2019 in Kuching.

48 ANNUAL REPORT 2019 MEF Executive Director, Datuk Hj. Shamsuddin Bardan was the resource person of the workshops. Participants of the workshops were given a complimentary copy of MEF publication entitled “Practical Guide on Compliance with the Employment Act of Malaysia”.

MEF Workshops on Industrial Relations (Amendment) Act 2019 and Proposed Amendments to Trade Unions Act 1959 When the proposed amendments to the Industrial Relations Act were tabled in Parliament by MoHR and subsequently passed at the Dewan Rakyat on 10 October 2019, MEF held workshops on Industrial Relations (Amendment) Act 2019 and Proposed Amendments to Trade Unions Act 1959 in Petaling Jaya on 17 December 2019 and Johor Bahru on 30 December 2019. The workshops attracted a total of 82 participants.

MEF Executive Director, Datuk Hj Shamsuddin Bardan highlighted to the participant the important provisions of “Industrial Relations (Amendment) Act 2019” and the “Proposed Amendments to Trade Unions Act 1959”. Participants of the workshops were given a complimentary copy of MEF publication entitled “Handling of Cases at the Industrial Court of Malaysia – The Law & Practice”.

LHDNM-MEF Seminars on Taxation MEF continued to collaborate with the LHDNM for the tenth consecutive years to hold taxation seminars in 2019. The theme for 2019 seminars “Voluntary Disclosure: What Taxpayers Should Know” attracted over 1,000 participants comprised of employers, taxpayers and tax agents from various companies. The first LHDNM-MEF Seminar on Taxation was held on 27 February 2019 at Royale Chulan Damansara, Petaling Jaya. Other seminars were held at Alor Setar, Bukit Mertajam, Ipoh, Johor Bahru, Kota Bharu, Kota Kinabalu, Kuantan, Kuching, Melaka, Miri, Petaling Jaya and Shah Alam.

ANNUAL REPORT 2019 49 The taxation seminars were organised with the aims to enhance the employers’ awareness on their roles and responsibilities in taxation, to educate employers on their liability for taxes and debts under the respective Acts and to guide and discuss on Special Voluntary Disclosure Programme (SVDP).

At the first LHDNM-MEF seminar on 27 February 2019, MEF President Tan Sri Azman Shah Dato’ Seri Haron was invited to deliver the welcome speech. MEF Council Member Assoc. Prof. Dr. Michael Chiam Tow Hui and MEF Executive Director Datuk Hj Shamsuddin Bardan were among the VIPs who attended the Seminar. Datuk Hj Shamsuddin Bardan chaired the presentation session on “SVDP” and “MTD: Expert’s Guides”.

MEF Tripartite Seminar in Conjunction with Labour Day 2019 On 23 April 2019, MEF held for the second time a tripartite seminar at Holiday Villa Subang to enhance the tripartism spirit among the employers, employees and Government in celebrating the National Labour Day. The Seminar which was partly supported by Petronas, Telekom Malaysian Berhad and SP Setia Berhad reflected the strong support of MEF to MOHR and MTUC/CUEPACS in organising an activity for the Labour Day 2019 celebration. The Seminar was attended by 78 representatives from Malaysian Trades Union Congress (MTUC), Congress of Unions of Employees in the Public and Civil Services (CUEPACS), MoHR officials and MEF members.

MEF Vice-President En A. Ramadass in his welcome address stated that in Malaysia, the MEF and MTUC are the ‘recognised representative’ organisations of private sector employers and workers respectively. As social partners, MEF and MTUC are represented at the established national platforms including the National Labour Advisory Council (NLAC) that is the highest tripartite labour advisory body in the country. The strong spirit of tripartism between the social partners in the formulation of labour policies could be felt as the proposed amendments to various employment legislations were being discussed at the NLAC and its numerous Technical Committees.

50 ANNUAL REPORT 2019 The half-day seminar featured the following speakers delivered topics relating to future of work: • Dato’ Amir Omar, Secretary General of MoHR on “Preparation of Employers and Employees for Future of Work” • Datuk Hj Azih Muda, CUEPACS President on “Public Sector Employees: Meeting the Challenges of I.R.4” • Dato’ Abdul Halim Mansor, MTUC President on “Employees’ Readiness for Future of Work” • Datuk Hj Shamsuddin Bardan, MEF Executive Director on “Employers’ Role in Establishing a Conducive Workplace Environment for Future of Work”

MEF Seminar on “Managing Corruption at the Workplace” MEF collaborated with the Malaysia Anti-Corruption Academy (MACA) to hold a one-day Seminar on “Managing Corruption at the Workplace” with the aim to create understanding on the essence of new amendments to the Malaysian Anti-Corruption Commission (MACC) Act 2009 that focuses on corporate liability and its implication on the business on short and long term basis.

MEF Executive Director Datuk Hj Shamsuddin Bardan was one of the speakers to the Seminar. He briefed the participants on “Handling Disciplinary Matters on Corruption Issues at the Workplace” and “Highlights of Cases on Corruption at the Workplace”. The Seminar was held in Kuala Lumpur on 17 January 2019 with a total of 113 participants. MEF Council Members Assoc. Prof. Dr. Michael Chiam Tow Hui and Dato’ Ahmad Nadzarudin Abdul Razak and MEF Senior Manager – Employers Affairs En Mohd Zakri Baharudin were among the participants who attended the Seminar. The seminars were also conducted in (23 September 2019), Johor Bahru (21 October 2019), Shah Alam (23 October 2019) and Penang (2 December 2019) under a new seminar title namely “Corporate Liability under the MACC Act 2009”. In total, 137 participants attended the programme.

ANNUAL REPORT 2019 51 MEF Seminars on “Towards Drug Free Workplace” MEF organised series of seminars on “Towards Drug Free Workplace” at several locations which included Kuala Lumpur (29 August 2019 and 19 November 2019), Penang (05 September 2019), Kuantan (7 November 2019). The Seminars provided insights into relevant drugs-related Acts which focused on drug abuse and addiction at workplace, the available types of treatment, rehabilitation, and preventive measures that can be implemented by businesses and organisations and effective handling methods by employers in managing drug related issues at workplace. 81 participants which comprised of HR Practitioners, OSH Executives and HR Directors attended the seminars. The speakers included the Principal Assistant Director (Medical Treatment) of National Antidrug Agency (NADA) Dr. Ravi Ramadah and MEF Executive Director Datuk Hj Shamsuddin Bardan.

MEF Seminar on Compliance with Employment Act – The Practical Guides On 5 December 2019, MEF held the above Seminar on followed by open “Compliance with Employment Act – The Practical Guide” in Petaling Jaya with the objectives to create awareness on the common non- compliances with the Employment Act 1955 to reduce the exposure of the employers to legal actions by the enforcement officers of the Labour Department who are empowered to conduct statutory inspections at workplace on the compliance of the provisions of EA. The Seminar was conducted by MEF Senior Consultant – Industrial Relations En Goh Seng Wing also provided updates on the proposed amendments to EA and effective remedial measures to overcome the possible challenges facing the employers. 45 participants attended the Seminar.

MEF Seminars on Performance Management System (PMS) With Emphasis on Performance Improvement Plan (PIP) MEF held two-days’ seminars on “Performance Management System (PMS) With Emphasis on • 20 – 21 March 2019 (Kuala Lumpur) and • 20 – 21 November 2019 (Petaling Jaya)

52 ANNUAL REPORT 2019 A total of 25 participants attended the programmes which were conducted by MEF Senior Consultant – Industrial Relations Lt Col (R) Hj Mohd Akhir Hj Hamzah. The workshops introduced participants to the Performance Improvement Plan (PIP) which is a systematic approach to deal with poor performers. Participants were exposed to various landmark cases decided by Industrial Court, High Court, Appeal Court and Federal Court relating to poor performers.

MEF Workshops on Fixed Term Contracts - Legal and Practical Guide Doctrine of Legitimate Expectation in Employment MEF held two workshops entitled “Fixed Term Contracts - Legal and Practical Guide Doctrine of Legitimate Expectation in Employment” on 29 May 2019 and 12 September 2019 in Petaling Jaya. A total of 80 participants attended the programme which were conducted by MEF Senior Consultant – Industrial Relations Pn Saraswathi Ravindran and former MEF Special Function Adviser En M. Vivekanandan.

The workshops focused on issues and the laws pertaining to fixed term employment contracts and presented a systematic and integrated view of the legal and practical issues relating to fixed term employment contracts in Malaysia.

MEF Workshops on Managing and Handling Probationers MEF held two workshops on “Managing and Handling Probationers” on 18 March 2019 in Petaling Jaya and 3 December 2019 in Kuala Lumpur with a total of 59 participants. The objectives of the workshops were to provide understanding on the legal perspective in handling a probationer in relation to managing their work performance, misconducts, confirmation, non-confirmation or termination, dismissal and extension of probation and served as a practical guide in conducting the review and counselling of probationers.

MEF Senior Consultant – Industrial Relations Pn Saraswathi Ravindran was the speaker for the workshops. Participants who attended the programme were given a copy of MEF IR publication “Practical Guide on Performance Management”.

ANNUAL REPORT 2019 53 MEF 60th ANNIVERSARY DINNER

The MEF 60th Anniversary Dinner was held at Holiday Villa Hotel, Subang Jaya on 8 October 2019. The former Minister of Human Resources YB Tuan M. Kulasegaran was invited as the Guest-of-Honour for the event. 800 guests attended the Dinner which comprised of MEF members, Government Officials and representatives of trade unions.

Among the VIPs who attended the Dinner were the former Deputy Minister of Human Resources YB Dato’ Hj , MEF President Tan Sri Azman Shah Dato’ Seri Haron and his wife Puan Sri Mavis Azman, President of Federation of Malaysian Manufacturers (FMM) Tan Sri Dato’ Soh Thian Lai, ILO Assistant Director-General and Regional Director for Asia and the Pacific Ms Tomoko Nishimoto, MTUC President Dato’ Abdul Halim Mansor, Ex-Chairman of NIOSH Tan Sri Lee Lam Thye, National President of SME Association of Malaysia Datuk Michael Kang Hua Keong, former HRDF Chairperson Dato’ Noor Farida Mohd Ariffin, MEF Vice- Presidents En A. Ramadass, Tn Hj Abdul Wahab Abu Bakar and Dato’ Ir. S.S. Subramaniam, MEF Council Members and other Government Officials.

In his welcome address, the President Tan Sri Azman Shah expressed his appreciation to YB Tuan M. Kulasegaran for attending the Dinner. The President briefed on the many significant milestones of MEF in terms of employer representation to the Government and its related agencies for the past 60 years. He informed that the MEF membership has grown to 5,800 Ordinary Members and 25 Association Members.

54 ANNUAL REPORT 2019 Tan Sri Azman Shah reiterated that as the nation’s engine of growth, the voice of private sector employers is vital for the development of sound and workable policies. He stated that over the years, MEF has continually made efforts to ensure that the collective views and position of industry reach the right people in the right places. The President also stated that as the premier employer organisations at national, regional and international levels, MEF recognised the need to adapt and adopt various measures to improve services to members. This would include expanding focus and scope beyond matters of industrial relations to include human resource management, education, trade, finance, taxation and health that are relevant to the interest of members.

With regard to Government’s policies and regulations the President emphasised the importance to ensure that the cost of doing business is kept under control. Tan Sri Azman Shah stated that in reshaping the economy, Malaysia requires industrious hard working people who are trained and highly skilled so that labour productivity can be increased. MEF was of the view that there needs to be a comprehensive eco-system that would enable employers to do business in a more productive and competitive manner, and at the same time preserving the natural environment.

The former Minister of Human Resources, YB Tuan M. Kulasegaran in his keynote address urged the employers, unions and employees as the stakeholders to uphold the principles of social dialogue and tripartism in formulating labour policies going forward. He stated that a harmonious relationship between Government, employers and employees is crucial to ensure growth and sustainability of the

ANNUAL REPORT 2019 55 nation’s workforce. He highlighted that labour issues and industrial relations must be dealt with in the best possible manner in order to avoid complications, nurture industrial harmony and ensure economic stability. He reiterated that strengthening industrial harmony through tripartism hinges on effective communication on issues and problems faced by employers and workers so that these can be solved in an open and effective manner. Tripartism ensures that every industrial relationship is safeguarded.

On the MoHR’s ongoing efforts to update the current labour laws, YB Tuan M. Kulasegaran pointed out that a modern system of labour legislation would be established to ensure all workers are protected and at the same time provides enough space and flexibility needed by the industry to grow. He further stated that the policies formulated should take into account the flexibility of the labour market which would promote increased employment rates, economic stability and productivity increases that would improve the living standards.

In conjunction with MEF 60th Anniversary Dinner, MEF presented MEF Employer Excellence Awards under three categories (Bronze, Silver and Gold) to members as part of the MEF’s efforts to recognise and promote members’ innovative and creative initiatives under a flexible and progressive framework of doing business. The Awards were presented by YB Tuan M. Kulasegaran to the following companies:

• Excellence Award - Gold • AXA Affin General Insurance Berhad • Perbadanan Bekalan Air Pulau Pinang Sdn Bhd

56 ANNUAL REPORT 2019 • Excellence Award - Silver • Permodalan Nasional Berhad • MRT Corporation Sdn Bhd • FFM Berhad • Chubb Insurance Malaysia Berhad • Telekom Malaysia Berhad

• Excellence Award - Bronze • Amanah Raya Berhad • Universiti Tunku Abdul Rahman (UTAR) • Emerson Process Management (M) Sdn Bhd • X-Fab Sarawak Sdn Bhd • Uzma Bhd. • Agilent Technologies LDA Malaysia Sdn. Bhd. • Etika Group of Companies

In addition, MEF granted the MEF Loyal Staff Awards to the Secretariat staff who have been in service for more than 25 years.

Participants of the dinner were presented by lucky draw prizes contributed by member companies. Guests were entertained by a comedian, Rizal Van Geyzel and local band, New Village Music Lab.

ANNUAL REPORT 2019 57 MEF INDUSTRIAL RELATIONS PANEL

In 2019, the MEF Industrial Relations Panel had a meeting on 18 February, 15 April, 26 June, 19 August and 14 October. The meetings were chaired by MEF Vice-President En. A. Ramadass and the Panel deliberated on the following issues:

Dress Code for Female Muslim Staff The Panel was informed that MEF tried to communicate with the former Minister at Prime Minister’s Department YB Datuk Seri Dr. Mujahid on the dress code issue for female Muslim staff. The matter was first raised in Parliament by PAS regarding the MAS Stewardess dressing.

The Panel was briefed that initially the dress code issue was confined to female Muslim employees, but the draft guideline will cover all employees in the private sector. MEF viewed that the guideline was very lopsided. The draft guideline provides for the need of workers to dress in accordance with Syariah laws. MEF carried out a quick poll and 79% of the responded indicated that it should not be applicable for office attire. In addition, there is a difference between ‘Hijab’ and ‘tudung’. Subsequently, YB Datuk Seri Dr. Mujahid announced the drawing up of the Dress Code for female employees and MoHR later came up with the Guideline on Dress Code at the Workplace.

As far as the hotels are concerned, the issue of female Muslim employees at guest contact areas not being allowed to wear tudung by some hotels had been resolved. The Panel was informed that the MoHR had decided not to proceed with the Dress Code.

Employee Insurance Scheme (EIS) The Panel was informed that EIS would come into full force with effect from January 2019. After January, 2019 an employee who loses his job would be entitled to full benefits under EIS. Before 1 January 2019, an employee who has lost his job would only qualify for interim payment. MEF was of the view that if an employer wants to carry out a retrenchment exercise, it is advisable to carry out the retrenchment exercise after 1 January 2019 in order for the employee to obtain the full benefits of the EIS.

The Panel was informed that the Government collects RM0.5 billion each year for EIS. The EIS is going to make full payment in 2019. Based on the newspaper reports, 23,000 employees claimed for EIS and the payout was about RM 1 billion. The Panel commented that based on calculations, EIS should have surplus of funds, nevertheless, the EIS added a lot of things like training and job placement.

The Panel was briefed that SOCSO is managing the EIS. MEF is not represented in the EIS Committee. The Minister had promised that a representative of the MEF Council Member would be appointed to the EIS Committee.

58 ANNUAL REPORT 2019 Expansion of HRDF (PSMB) to All Sectors The Panel was briefed that at the HRDF townhall session, it was revealed that the alleged misappropriated amount was about RM300 million. The HRDF deduction of 30% for the pool fund was cancelled with effect from 15 November 2018. In addition, the HRDF had revamped their Board.

In response to the HRDF’s proposal that if the fund is not utilized after one year, it would be forfeited. The Panel suggested that MEF needs to object and propose a minimum of three years should be given to exhaust the fund. The Panel was informed that at the HRDF AGM, MEF had objected to the imposition of 4% processing fee for every claim approved by HRDF.

Proposed Amendments to the Employment Act The salient points of the proposed amendments is that irrespective of wages, every employee is to be covered by the Employment Act (EA). The Panel was informed MEF members did not agree to the wage cap of RM4,000. They were considering RM2,500. MEF’s major concern was when OT entitlement is raised to RM4,000, the cost of OT might increase to RM2.4 billion.

On the proposed reduction of working hours from 48 to 44 hours, MEF was of the view that the proposed amendment would be very costly to employers. The cost would be about RM26 billion a year. MEF had written to the Minister of MOHR on the cost effects on the proposed amendments to the EA.

Under the Housing and Amenities, the provision for minimum standards is being imposed. The Panel was informed that the Government was prepared to increase wage deduction for accommodation which is currently at RM50 per month.

Issues of Discrimination and Forced Labour On the issue of forced labour for foreign workers, MEF was of the view that unlike countries in the West where foreign workers pay for everything, in Malaysia the employer pays for the recruitment costs. Therefore, where the employee is required to work for the employer for a certain period, it should not be considered as in breach of ‘freedom to choose the employer’ and not as forced labour.

It was highlighted that the Government is working closely with ILO on Decent Work Programme. It is a country programme on forced labour, rights-based approach. International buyers are targeting the local companies for compliance with international standards. One international buyer said if the company is not refunding the money paid to agents in source country, the buyer will stop buying from the said company thereby forcing the company to pay millions of dollars. The Panel was briefed on the US Government’s stand that the practice of imposing a bond on the foreign worker amounts to forced labour. They viewed that imposing hostel rules like coming back within a certain time amounts to restriction on the movement of the workers and is discrimination.

ANNUAL REPORT 2019 59 Induction Courses for New Foreign Workers The Government proposed for centralized induction course for new foreign workers and to use the PLKN camps for the said purpose. MEF objected as the costs can be high. Based on MEF’s request, the MOHR with the stakeholders agreed to develop the template for the induction course which can be used by all employers of foreign workers.

Insurance Savings Scheme for Foreign Workers There was a technical committee meeting held to discuss the proposals. The proposals were raised by the Government to reduce incidences of abscondment. The proposal to impose 20% deduction on wages may create more hardships as currently most employers deduct 28% of wages of foreign workers for the first six months for income tax of non- residents. Various other proposals were discussed such as Bank Guarantee and EPF contributions.

Prayer Time for Muslims The Panel was informed on the issue of the Guideline on five times daily prayer at the workplace. The Labour Department issued a draft and MEF submitted its written feedback. There was no meeting called and the Labour Department finalized the Guideline and the former Minister of HR launched the guideline. MEF wrote a strongly worded letter to the Minister and requested that the Guideline be withdrawn. The letter emphasised on the issue of why should employers need to give 20 minutes each time for 5 times daily prayer. Also, if a male Muslim employee does not go for Friday prayers, he can be prosecuted compared to the provision in State Syariah laws. The State Syariah laws provide that if Friday prayer is not observed for three consecutive Fridays without ‘uzur syarie’ only then can one be prosecuted.

Update on Review of Minimum Wages After the last meeting of NWCC, the new minimum wages was gazetted at RM1,050 for Peninsular Malaysia and RM1,000 for Sabah, Sarawak and W. P. . Then, the Government revised the minimum wages to RM1,100 for the whole of Malaysia. MEF’s stand was that there was already a gazette notification and the Government cannot change it unilaterally.

Under the NWCC Act, minimum wages would be reviewed once in two years. There is a process which has to be followed. With the findings of the Technical Committee, the NWCC would then determine on the rate to be recommended to the Minister. The Minister would then make recommendations to the Cabinet. The RM1,050 was determined by the Cabinet and announced by the Prime Minister’s Department.

The Panel was informed that at the last NWCC meeting, the Chairman of NWCC also mentioned that wages cover everything and is not limited to basic wages only. The Minister wrote to the Chairman of NWCC to look at the ways of providing wages by sector, region and occupation. MEF requested that employers and workers representatives be appointed as members of the Technical Committee.

60 ANNUAL REPORT 2019 Proposed Amendments to the Trade Unions Act 1959 The Chairman of the IR Panel briefed the members that the Trade Unions (TU) Act should be amended as currently one cannot sue an officer of the trade union based on tort. He was of the view that defamation is an act of misconduct and an employer should be able to take action against an employee. The Panel was informed that MEF would take up the matter with the Minister.

MEF was of the view that the proposed amendments to TU Act incorporated the principles of C.87 on freedom of association. MEF reiterated that the current system serves the country well. Under the proposed amendments even if an employee is retired, dismissed or suspended, the employee can still retain union membership. MEF stood firm that union membership must be based on employment status. In the event of more than one union being recognized by the company, a secret ballot would be conducted to determine collective bargaining rights. The union with more votes would be given the collective bargaining rights. The process might be repeated every three years. The proposed new system may lead to industrial disharmony.

The issue on recognition of union was also discussed. The Panel was briefed that there were cases where the union filed a claim for recognition and it took close to 29 years before it was resolved at the Federal Court. The Government proposed 14 days instead of 21 days for the employers to respond upon receipt of Form A. If the employer fails to respond within the given time the Union may file a complaint with the IRD. The Government proposed that in the event the Company fails to submit Form B, the Ministry is empowered to grant recognition to the Union. In the event the Union fails to file Form C, the claim is deemed to be withdrawn.

With regard to membership verification, secret ballot would be discontinued and membership check would be carried out to determine union representativeness. MEF raised the point that previously membership check was not transparent. There was a need for both the representative of the employer and the union to be present at the membership verification exercise. The Panel was informed that normally upon receipt of Form A, the employer would question the competency of the union to represent workers of the company. The secret balloting was not based on membership. It is based on the number of employees who wish to be represented by the Union.

Amendments to the Industrial Relations Act (IRA) 1967 The Panel was briefed on the amendments to the IRA 1967 which was passed by the Dewan Rakyat on 10 October 2019. Among the salient point highlighted were the issues relating to recognition and scope of Union, the bargaining rights of the Union, workmen’s representation, reference of trade dispute to the Industrial Court, application to the High Court and the amended list of essential services of the First Schedule of the Act. The effective date of implementation of IRA is yet to be in force.

ANNUAL REPORT 2019 61 OSH Act For the OSH Act, the Ministry wanted to bring in the Machinery Act together with SOCSO Act. The Ministry is thinking of outsourcing inspection work to individual persons. MEF viewed that under outsourcing, the rates may be higher. There would be a lot of issues on cronyism and abuse.

Expatriates and SOCSO The Panel was informed that the expatriates are covered under SOCSO but limited to RM4,000. The expatriates are required to register with effect from 1 January 2019, but, would only contribute to SOCSO when the current insurance expires.

Discussion on BNM Report on Starting Pay and Pay for Productivity It was reported that according to the Bank Negara Annual Report, the Malaysian workers are paid lower when benchmarked with countries like UK, USA, Germany and Singapore. MEF felt that it was not a fair comparison. MEF is trying to get similar data from ASEAN members for comparison purposes.

Discussion on HR Practitioners Act The Panel was briefed that the MoHR had proposed a new Act namely the HR Professional Act. Under the proposed Act, the HR Practitioners would only be acceptable if they are registered under the Act. MEF was of the view that the move should not convert it into a money-making scheme. MEF also raised concerns on seasoned practitioners who might not have any relevant qualifications. They might have to sit for some exams. MEF had suggested some mechanism to give exemptions to existing practitioners.

Presentations at the IR Panel Meetings • Presentation on Comprehensive and Progressive Agreement for Trans- Pacific Partnership (CPTPP) During the presentation, the Panel was informed that Malaysia would be pursuing the CPTPP. The United States of America (USA) might want to rejoin the CPTPP. If USA were to rejoin then it might put its terms on Malaysia just like the aborted TPPA. However, it is not certain if the Government wants to ratify CPTPP. The USA is still holding to the same report on migrant workers similar to the report under TPPA. The irony is though it is not relevant under TPPA the US is still monitoring Malaysia’s practices on foreign labour.

62 ANNUAL REPORT 2019 • Updates on Industrial Court Cases and Other Cases The Chairman briefed on a decision of the Industrial Court where the Chairman ordered RM2.5 million as compensation of a case on constructive dismissal. The Claimant was the ED and CEO and was in charge of two departments namely the Operations and Group Services. The Company decided to reorganize the company while the Claimant was on leave and the Chairman put his son in charge of one of the departments the Claimant was overseeing. When he came back from leave, he was told of the decision and he claimed constructive dismissal. The matter is now before the High Court on certiorari to quash the Industrial Court’s decision.

A case of a staff of a private company who falsified the medical certificate was highlighted. The Company had filed a report and the case was brought before the Magistrates Court. The Magistrates Court fined the employee RM1,000 and in default two months jail as the Court found that the employee had the intention to cheat by using a medical leave as genuine when it was a false medical certificate.

A case concerning computer records (Award 1740 of 2019), as to whether such documents can be tendered in Industrial Court without the need to comply with the requirements of fulfilling Section 90A of the Evidence Act 1950 was also presented. The Claimant claimed for unfair dismissal. The nature of misconduct ranged from insubordination, tardiness and being absent from work without approval and leaving early for lunch. In proving the charges, the Company tendered he entry and exit records provided by the building management. The Claimant argued that based on the Evidence Act, a computer-generated document can only be received as evidence if it is generated by the computer in the course of its ordinary business. The Industrial Court held that although Section 90A of the Evidence Act 1950 was to be strictly complied with in criminal or civil proceedings, at the Industrial Court it does not require strict compliance by virtue of Section 30 (5) of the Industrial Relations Act 1967. The Court held that the dismissal to be with just cause and excuse.

A case involving drug abuse was also highlighted at the meeting. In Award 1428 of 2019, the Claimant had signed off from on board ship service when traces of methamphetamine were found in his cabin. The urine test at the clinic was negative. The Company then extracted the hair sample of the Claimant and sent it to a laboratory in the United Kingdom for drug analysis. The results were positive and the Claimant was dismissed from services. The Claimant denied that it was his hair that was sent to the UK. The Court found that there was no break in the chain of custody of the hair sample from the extraction to the laboratory in UK. The Industrial Court accepted the evidence brought by the Company and upheld the dismissal, based on the Company’s policy of zero tolerance for drug abuse.

ANNUAL REPORT 2019 63 MEF SERVICES TO MEMBERS

MEMBERSHIP AND PUBLIC RELATIONS The MEF Membership and Public Relations Section continuously enhances the teamwork spirit in assisting the efficient delivery of services to the members and the public at large. In 2019, the Section conducted several public relations activities such as organising media conferences and annual dinner, besides coordinating visitations, National Labour Day celebration, facilitating MEF staff family day event and marketing and promoting the MEF events and products.

MEF Public Relations and Marketing For the past one decade, MEF has been organising series of taxation seminars in collaboration with Lembaga Hasil Dalam Negeri Malaysia (LHDNM). A total of 12 locations were covered which recorded more than 1,000 participants. Themed “Voluntary Disclosure: What Taxpayers Should Know”, the MEF and LHDNM seminar secretariat teams collaborated in conducting seminars in Kuala Lumpur, Kota Kinabalu, Miri, Kuching, Kuantan, Kota Bharu, Shah Alam, Alor Setar, Bukit Mertajam, Ipoh, Johor Bahru, and Melaka. The duration spanned from 27 February 2019 to 4 April 2019.

The Membership & Public Relations section collaborated with the Malaysian Anti- Corruption Academy (MACA) in organising the series of MEF Seminar on Corporate Liability Under the MACC Act 2009. Held at seven locations namely Kuala Lumpur, Kuala Terengganu, Johor Bahru, Shah Alam, Penang, Kuching, and Kota Kinabalu respectively, the seminars were well attended by nearly 300 participants nationwide. The maiden seminar in Kuala Lumpur was themed Managing Corruption at the Workplace. Based on the evaluation feedback received, the organising committee decided to improve and incorporate the contents of program by re-themed it to Corporate Liability Under the MACC Act 2009 for the remaining locations.

Another collaboration effort was made with the National Anti-Drug Agency (AADK) during the year under review. Responding to the drug related issues faced by a number of member companies, MEF and AADK organised a series of five seminars in Peninsular Malaysia titled MEF Seminar 2019 on Towards Drug Free Workplace. Some 100 participants attended the seminars.

64 ANNUAL REPORT 2019 As a strategic tripartite partner to the Ministry of Human Resources and MTUC/CUEPACS, MEF participated in the National Labour Day celebration. The year in review witnessed the participation of MEF actively in the various activities. MEF sent its 50-man contingent to participate in the National Labour Day 2019 gathering. The former Prime Minister YAB Tun Dr. Mahathir Mohamad addressed the gathering of 7,000 participants comprising the employees, employers and members of the unions. An exhibition displaying posters on MEF milestone, role, and activities were put up, besides MEF publications and training brochures and leaflets. Both the gathering and exhibition were held at the Putrajaya International Convention Centre (PICC) on 1 May 2019.

For the second consecutive year, MEF organised its MEF Tripartite Seminar in Conjunction with Labour Day 2019. The event was held on 23 April 2019. The tripartite seminar themed Pekerja Amanah Aspirasi Negara was aimed to reflect the spirit of tripartism among the employers, employees and Government and unity in celebrating the National Labour Day. Partly supported by Petronas and other MEF members namely Telekom Malaysia Berhad and SP Setia Berhad, the seminar successfully projected the strong support of MEF to MOHR and MTUC/CUEPACS in organising an activity meant as an appreciation to the Government and Employees’ communities for the Labour Day 2019 celebration.

ANNUAL REPORT 2019 65 MEF was provided with the opportunity to further enhance its media exposures for the Labour Day 2019 celebration with an interview slot on Selamat Pagi Malaysia, Radio Televisyen Malaysia (RTM) media channel on 24 April 2019. The former Deputy Minister of Human Resources YB Dato’ Hj Mahfuz Omar and MEF Executive Director Datuk Hj Shamsuddin Bardan were the panellists for the slot.

Some quarters of MEF members in the Central Region, and Johor had the opportunity to attend the special briefing sessions by Prof. Sattar Bawany. Prof. Sattar is the Chief Executive Officer of the Centre for Executive Education (CEE Global) based in Singapore, besides his other numerous international positions, and a book author. The first session was held with some 60 participants at MEF Headquarters in Petaling Jaya on 22 April 2019 with a 3-hour talk on Leading in Industry 4.0 (I.R. 4.0). The second session held was during the Johor members meeting on 20 August 2019 titled Transforming the Next Generation of Leaders for Industry 4.0 (I.R. 4.0).

For Public Relations activities, the Section assisted in the organizing of industry group meetings, and a media conference in 2019. The media conference highlighted the findings of MEF newly published reports namely the MEF Salary Survey for Executives 2019; MEF Salary Survey for Non Executives 2019; MEF Man-Days Lost & Absenteeism Survey 2019; and MEF Analysis of Collective Agreements & Awards on Terms and Conditions of Employment 2018.

The MEF 60th Anniversary Dinner took place on 8 October 2019 at the Holiday Villa Subang, Subang Jaya, . The former Minister of Human Resources, YB Tuan Kulasegaran was the Guest-of-Honour for the event. Present at the MEF 60th Anniversary Dinner were Deputy Human Resources Minister YB Datuk Mahfuz Omar, MEF President Tan Sri Azman Shah Dato’ Seri Haron and MTUC President Dato’ Abdul Halim Mansor. Also present to witness the anniversary celebrations was the International Labour Organisation (ILO) Assistant Director-General and Regional Director for Asia and the Pacific, HE Ms Tomoko Nishimoto. The event attracted around 800 guests from the MEF membership, government officials and representatives of trade unions and other strategic partners.

66 ANNUAL REPORT 2019 The Section also organised visits from four delegations of institutions of higher learning undergraduates to MEF. Some 60 students of UiTM Seremban campus paid a visit to MEF on 22 April 2019. Following that, another group of students of UiTM Melaka City campus, and Puncak Alam Shah Alam campus came to MEF on 15 October 2019; and 23 October 2019, respectively. MEF was also approached for a group of students from HELP University, Damansara campus on 23 October 2019. The student groups were briefed on MEF role, functions and activities; besides discussing on job and career opportunities – employers’ expectations and demands during their visits.

The Section hosted the courtesy visit of IOE Asia Adviser Ms Akustina Morni to MEF on 3 May 2019. A familiarisation visit to MEF was also organised for the newly appointed Senior Employers’ Specialist of ILO Bangkok office Mr Lee Dong Eung on 5 July 2019 respectively.

ANNUAL REPORT 2019 67

MEF Membership Amidst the economic and political challenges that affect the growth of businesses, the year 2019 recorded a steady increase in the enrolment of MEF Ordinary members with a total of 270 companies. By end of December 2019, total membership recorded was 5,931; with 5,877 Ordinary Members alongside with 25 industry groups registered as Association Members. MEF membership covers slightly 2.82 million private sector employees in Malaysia.

Total Number of MEF Membership as at 31 December 2019

No. of Members No. of Employees Ordinary Members 5877 1,673,972 Association Members 25 1,132,123 Associations’ members company 29 9,726 TOTAL 5,931 2,815,821

MEF Membership by Region as at 31 December 2019

Region Total Percentage (%)

Northern 424 7.2 Pulau Pinang 197 3.3 Central Region 4,525 76.3 Selangor W. P. Kuala Lumpur Melaka Southern Region 358 6.0 Johor East Coast Region 164 2.8 Terengganu East Malaysia Sabah/ W. P. Labuan 78 1.3 Sarawak 185 3.1

5,931 100.0

68 ANNUAL REPORT 2019 MEF Membership by Industrial Sector MEF Membership by Union as at as at 31 December 2019 31 December 2019 73.3% of MEF membership were made 54.2% of MEF member companies up from companies in non-manufacturing were non-unionised whilst 45.8% of the sector while 26.70% of the members were members have trade union. from companies in manufacturing sector.

1583 (26.7%) 2,719 (45.8%) 3,212 (54.2%) 4,384 (73.3%)

Manufacturing Unionised

Non Manufacturing Non Unionised

MEF Membership by Employment Size as at 31 December 2019 44.9% of MEF membership constituted of companies with a labour force of 50 employees and below. 18.2% of the members have employed between 51 – 100 employees, 17.6% of the members employed between 101 – 250 employees and 9.1% of the members employed between 251 – 500 employees. 5.4% of the members employed between 501 – 1,000 employees while companies with a labour force above 1,000 employees formed 4.8% of the total membership.

321 287 542 (5.4%) (9.1%) (4.8%) 50 employees & below

51 – 100 employees 1,041 (17.6%) 101 – 250 employees

251 – 500 employees

501 – 1,000 employees

2,660 More than 1,000 employees (44.9%) 1,080 (18.2%)

ANNUAL REPORT 2019 69 70 ANNUAL REPORT 2019 INDUSTRIAL RELATIONS In 2019, MEF Consultants – Industrial Relations continue to serve and guide members in all aspects of labour legislations in Malaysia either through email, telephone, circulars, monthly meetings, seminars and training sessions.

In 2019, the MEF Consultants – Industrial Relations handled less Industrial Court cases with a total of 151 cases (2018: 305 Industrial Court cases). The reduction number of Industrial Court cases handled by MEF was due to the reduction in the number of backlog cases at Industrial Court. The Labour Court cases handled by MEF had increased to 23 cases compared to 13 cases in 2018. There were 25 conciliation cases represented by MEF Consultants – Industrial Relations in 2019 (2018: 26 conciliation cases). The number of CA/ Collective bargaining cases handled by MEF also reduced from 12 cases in 2018 to 8 cases in 2019. The Consultants also drafted and prepared employee/ company’s handbooks for 11 member companies whilst the Advisory and Consultation projects provided by MEF slightly increased to 21 projects in 2019.

NO. OF CASES / IR PROJECTS HANDLED BY MEF IR CONSULTANT

350 305 2015 300 2016 250 2017 202 200 175 172 2018 151 150 2019

100

34 25 50 40 36 26 19 26 23 18 20 21 12 13 7 15 12 8 11 8 9 9 11 13 0 INDUSTRIAL LABOUR CONCILIATION CA / COLLECTIVE EMPLOYEE/ ADVICE COURT COURT BARGAINING COMPANY’S CONSULTATION HANDBOOK PROJECT

MEF published a new IR publication entitled Practical Guide to Human Resources Management (Second Edition). The book provides updates on best practices of covers companies in human resources management which covers recruitment, performance management, training, promotion and organisation development. The book also includes guidance on drawing up of terms and conditions of employment and the management of discipline at the workplace.

The book which is priced at RM250 per copy for members is available for sale at MEF HQ.

ANNUAL REPORT 2019 71 RESEARCH AND INFORMATION In 2019, the Research and Information section published four survey reports namely MEF Salary Survey for Executives and Non Executives 2019, MEF Man-Days Lost & Absenteeism Survey 2019 and MEF Analysis of Collective Agreements and Awards on Terms and Conditions of Employment 2018. In conjunction with the launch of the publications, a press conference was held at MEF Headquarters in Petaling Jaya, Selangor on 27 November 2019. The President, Tan Sri Azman Shah Dato’ Seri Haron and MEF Council Members, Assoc. Prof. Dr. Michael Chiam Tow Hui, Dato’ Ahmad Nadzarudin Abdul Razak, En Mohd Syukri Ahmad Sudari and Pn Peggy Chew Being Being attended the press conference where the findings of the survey reports were highlighted.

MEF Salary Survey for Executives and Non Executives 2019 The MEF Salary Survey for Executives and Non Executives 2019 was the twenty-fifth edition of salary reports since 1995. The 2019 reports collected data from 252 respondent companies and covering 18,782 executives’ salaries in Malaysia in 151 benchmark positions and 48,098 non executives’ salaries in 109 benchmark positions. The reports also included a special section which analysed the feedback of internship programme for the graduates. Among the findings of the survey were: • The average salary increase for executives in 2019 was slightly higher at 5.15% compared to 4.88% in 2018 • The average salary increase for non executives in 2019 was slightly higher at 4.96% compared to 4.88% in 2018 • The overall average forecasted salary increase for executives in 2020 was 5.0% while the average forecasted salary increase for non executives in 2020 was at 5.01% • The average forecasted bonus for executives for 2020 was 1.90 months • The average forecasted bonus for non executives for 2020 was 1.79 months • Less than 40% of the respondent companies advertised their internship placement with online recruitment agencies or company website

72 ANNUAL REPORT 2019 MEF Man-Days Lost & Absenteeism Survey 2019 The third edition of Man-Days Lost & Absenteeism Survey 2019 updates the findings of the previous reports published in 2010 and 2015. The Survey was conducted with the objective of identifying the causes of man-days lost and absenteeism at the workplace, the current trend in rates of man-days lost and absenteeism among the respondent companies and companies’ best practices in monitoring and reducing man-days lost and absenteeism at the workplace. 140 companies participated in the Survey. Among the findings of the Survey were: • Five major causes of man-days lost were outpatient sick leave, hospitalisation sick leave, absence without permission, lateness and unpaid leave • Man-days lost rate during the period 1 June 2018 to 31 May 2019 was 10.3% or equivalent to 10.3 absent days per employee • Man-days lost rate due to outpatient sick leave during the period 1 June 2018 to 31 May 2019 was 0.54% • More than 90% of the respondent companies indicated that they faced issues with employees coming late to work

MEF Analysis of Collective Agreements & Awards on Terms and Conditions of Employment 2018 The fourteenth edition of MEF Analysis of Collective Agreements & Awards on Terms and Conditions of Employment 2018 covers the analysis of salaries and terms of employment in 281 Collective Agreements (CAs) that were given cognisance by the Industrial Court in 2018 and 53 Industrial Court Awards in 2018 that disputed on the terms and conditions of employment. It serves as the essential reference guide for the unionised companies and IR/ HR practitioners. The Analysis revealed that: • 181 CAs provided for across-the-board salary adjustment at an average of 6.2% in 2018 as compared to 5.7% in 2017 • 42.2% of the CAs provided discretionary bonus only, 41.8% provided contractual bonus only and 16% provided both contractual and discretionary bonus • the average amount of contractual bonus provided in 2018 was slightly higher at 1.62 months as compared to the average amount of contractual bonus provided in 2017 at 1.56 months • 3 out of 23 awards that were decided by the Industrial Court in 2018 provided an average across-the-board salary adjustment at 5.8%

ANNUAL REPORT 2019 73 Polls Conducted in 2019 Poll on “Should the No Fault Claim Be Implemented by SOCSO?” It was found that 69.3% of 114 respondents indicated that the no fault claim should be implemented by SOCSO compared to 30.7% who indicated that no fault claim should not be implemented by the SOCSO.

Poll on “Should the Government establish dress guideline at the workplace for private sector employees?” The poll result showed that 70.04% of 247 respondents disagreed with the proposal of the Government to establish dress guideline at the workplace for private sector employees while 29.96% agreed with the Government proposal.

Poll on “What is your opinion in communicating with service providers via chatbot?” The poll result showed that 44.12% of 136 respondents would like to communicate with the service providers via chatbot compared to 43.38% who did not like to communicate with the service providers via chatbot. 12.5% of the respondents indicated for no opinion.

Poll on “Based on your opinion, should the industries/services below be retained in the list of essential services under the First Schedule of Industrial Relations Act 1967?” It was found that 23.61% of 72 respondents were of the view that port, dock, harbour and airport services and undertakings, including stevedoring, lighterage, cargo handling, pilotage and storing or bulking of commodities should be retained in the list of essential services under the First Schedule of Industrial Relations Act 1967. 22.22% of the respondents were of the view that postal services should be retained in the list of essential services under the First Schedule if Industrial Relations Act 1967. This was followed by banking services (20.83%), production, refining, storage, supply and distribution of fuel and lubricants (18.06%) and radio communication services, including broadcasting and television services (15.28%).

Poll on “Should HR professions be regulated by the Proposed Human Resources Professionals Act?” 74.76% of 206 respondents were of the view that that HR professions should be regulated by the Proposed Human Resources Professionals Act while 25.24% of the respondents were of the view that HR professions should not be regulated by the Proposed Human Resources Professionals Act.

74 ANNUAL REPORT 2019 INFORMATION TECHNOLOGY The MEF Information Technology Section continues to provide IT related matters including day-to-day maintenance and updating of MEF portals, MEF Academy, CAPE and ACE websites, production of MEF e-Newsletters, dissemination of information via email to MEF members and assistance in technical areas such as audio and visual.

In 2019, a total of 284 email blasts (excluding email blasts by MEF Academy) were sent out. These emails include circulars, notice of meetings, invites for MEF conferences, seminars and workshops, invites for trainings conducted by MEF Academy, information and events sent on behalf of Government agencies and third parties.

The IT Section also ensures that urgent circulars were sent to members almost immediately in response to the imminent issues that have arisen. 44% of the emails that were sent to members in 2019 were events and training related while 39% were for notices of the industrial and regional meetings. Since 2017, notices of the Annual General Meeting of MEF were sent out to members via email.

The websites that were created and maintained by the MEF IT Section are:

• MEF Website (www.mef.org.my) The MEF official website provides general information such as services offered by MEF, general news, press releases, MEF in the news, FAQs, statistics such as CPI and MEF events.

The “Members Only” website requires members to loginto access additional information such as to view and download the circulars, e-newsletters, annual reports, notices and minutes of the regional and group meetings, etc. There is also a section where members can post their queriesonline. Dedicated MEF consultants will attend to these queries within a specified time-frame.

To enable members to login to this “Members Only” website, members are allocated with 4 free user IDs while group members are allocated with additional one ID for each of their subsidiary that is registered with MEF. Around 8,300 user IDs are currently activated while 83% of the MEF member companies had activated their online IDs.

ANNUAL REPORT 2019 75 • MEF Academy Website (www.mef.org.my/mefacademy) Visitors may view the upcoming training courses and events conducted by the MEF Academy.

• CAPE Website (www.cape-emp.org) The Confederation of Asia-Pacific Employers (CAPE) is a regional organisation comprising employers’ organisations from the Asia- Pacific region. MEF as the Secretariat of CAPE was tasked to create the CAPE website and host it at the MEF Headquarters. The CAPE website shows the functions and objectives of the organisation as well as its members and activities.

• ACE Website (www.aseanemployers.org) The ASEAN Confederation of Employers (ACE) website was revamped by the MEF Information Technology section and is currently hosted at MEF Headquarters. The ACE website provides the public to view latest news and activities of ACE and its members.

76 ANNUAL REPORT 2019 EMPLOYER AFFAIRS The Employer Affairs Section continues to assist in drafting letters and memoranda to Government in 2019. The Section was involved in meetings, discussions and dialogues with the Government at various platforms on issues and challenges faced by private sector employers.

The Section’s activities included involvement at the various platforms of government – including at the Budget 2020 Consultation under the Ministry of Finance and at the MITI Annual Dialogue under the Ministry of International Trade and Industry highlighted the employers’ views and positions on matters including the following: • Foreign workers • National Minimum Wages • Social safety net • Review of labour laws • Education • Employability

Among the meetings attended include the: • National Council for Employment of People with Disability • Steering and Technical Committee Meetings on National Employment Returns • Steering and Technical Committee Meetings on Critical Occupations List • Steering and Technical Committee Meeting on Effects of Merger and Corporatisation of Skills Training Institutes under Ministry of Human Resources on TVET Workforce, Training Quality and Future TVET Workforce • Technical Committee Meetings of the Skills Development Council on Certification and Accreditation • Technical Committee Meeting on the Decent Work Country Programme (DWCP) • Technical Committee Meeting of the National Skills Development Council

Other matters dealt with at the various platforms pertained to technical and vocational education and training (TVET), Employment Insurance System (EIS), productivity-linked wage system (PLWS) and retrenchment.

The Employer Affairs Section represented MEF as a panel member to select winners for the HRDF Awards 2019 and the 2019 Labour Day Awards.

ANNUAL REPORT 2019 77 OCCUPATIONAL SAFETY, HEALTH AND ENVIRONMENT (OSHE) Various OSHE activities which included OSH training programmes, OSH joint programmes with external agencies and OSH meetings were held throughout 2019. The aim of these activities was to improve the level of awareness and conformance on OSH practices and legal requirements among MEF members.

Training Programmes on OSHE OSHE section conducted 8 public training programmes on OSHE with a total of 118 participants and 6 in-house training programmes with a total of 223 participants in 2019 covering the following topics: • Basic Ergonomics at the workplace. • Essentials of OSH at the workplace • Formation of an Effective Safety and Health Committee • Hazard Identification Risk Assessment and Risk Control • Initial Ergonomic Risk Assessment • Job Safety Analysis. • OSH Act 1994 • OSH in the Office

Followings were details of OSHE public training programmes held in 2019. • Training on Formation of an Effective Safety and Health Committee held on 24 to 25 January 2019 • Training on OSH Act 1994 held on 14 February 2019 • Training on OSH in the Office held on 22 March 2019 • Training on Essential of OSH at the workplace held on 20 to 21 June 2019 • Training on OSH Act 1994 held on 23 September 2019 • Training on Initial Ergonomic Risk Assessment held on 30 September to 1 October 2019. • Training on OSH in the Office held on 30 October 2019 • Training on OSH in the Office held on 18 December 2019

MEF – SOCSO OSHE Prevention Seminars MEF collaborated with Social Security Organisation (SOCSO) in organizing OSHE Prevention Seminars in Petaling Jaya on 16 October 2019 and in Johor Bahru on 13 November 2019 with a total of 44 participants. The seminars were to promote better OSH practices at work in order to prevent injuries and to improve the work conditions among SOCSOs’ contributors. The theme of the Seminars was “Environmental Pollution

78 ANNUAL REPORT 2019 and Emergency Response – Guide for Employers”. The seminars were perceived as a good ‘eye opener’ for the participants in the field on environmental protection and chemical management at the workplace based the relevant national laws.

MEF – SOCSO Workshops on Understanding Employees’ SOCSO Act 1969 and Employment Insurance System Act 2017 - Guide for Employers The above workshops were organised in collaboration with SOCSO with the objective to ensure employers understand their responsibilities under the SOCSO Act 1969, Employment Insurance System Act 2017 and Return to Work Programme. Participants were also briefed on the procedures and forms which needed to be submitted for claim to SOCSO. The workshops were held at the following various locations with a total of 95 participants: • 24 June 2019 at Crystal Crown Hotel, Petaling Jaya • 3 July 2019 at Bayview Hotel, Georgetown, Pulau Pinang • 8 July 2019 at Grand Paragon Hotel, Johor Bahru • 20 November 2019 at Mercure Hotel, Kota Kinabalu

ANNUAL REPORT 2019 79 OSH Presentations MEF was invited to present a paper entitled “Employees Health Initiatives: an investment?” at the Vision Zero Conference 2019 organised by SOCSO on the 9 to 10 July 2019 held in Putrajaya. The presentation highlighted on the cost of man-days lost due to sick leave and its related cost. It also elaborated on the health initiatives adopted by companies to reduce the cost of man-days lost due to sick leave.

MEF also presented a paper entitled “Way forward for OSH – the Employers Perspective” at the National Seminar on OSH organised by the National Council for OSH held on 18 to 19 September 2019 in Putrajaya.

Engagement With External Agencies MEF continues to collaborate with various national bodies and Government agencies in various activities which included the followings: • “Vision Zero Module Workshop” by School of Business Management, Universiti Utara Malaysia (SBM-UUM) on 24 – 25 February 2019 • “Structured Group Meeting: Developing Strategy Paper for the 12th Malaysia Plan Titled “SDG#5 Sexual & Reproductive Health & Rights & Violence against Women Migrant Workers”” by Universiti Sains Malaysia (USM) and Middlesex University London on 27 June 2019 • SOCSO Board Committee Meeting for Promotion of Non-communicable Disease on 2 July 2019 • Panel Auditor of Malaysian Society for Occupational Safety and Health (MSOSH) OSH Award 2018 • Meetings on Development of National OSH Standard under Standards Malaysia

80 ANNUAL REPORT 2019 REGIONAL MEETINGS

Central Region Meetings MEF Council Member Tn Hj Mohammed Amin Aziz was re-elected as the Chairman of the Central region meetings in 2019 which were held at Menara Yayasan Selangor, Petaling Jaya.

Members were briefed on the following by the invited speakers and MEF Senior Consultants – Industrial Relations: • “Ordinary Rate of Pay” by MEF Senior Consultant – Industrial Relations En Goh Seng Wing • “Proportionality of Punishment” by MEF Senior Consultant – Industrial Relations Lt Col (R) Hj Mohd Akhir Hj Hamzah • “Preparation of Court Cases” by MEF Senior Consultant – Industrial Relations En V. Nantha Kumar • “Defending Company’s Case in Industrial Court” by MEF Senior Consultant – Industrial Relations Tn Hj Zaikon Jaafar • “Updates on Possible Amendments to the Employment Act 1955” by MEF Senior Consultant – Industrial Relations En Goh Seng Wing • “Duty of Presenting Officer in a Domestic Inquiry” by MEF Senior Consultant – Industrial Relations En V. Nantha Kumar • “Maternity Leave – Section 37 of Employment Act 1955 – Important Points to Note” by MEF Senior Consultant – Industrial Relations Lt Col (R) Hj Mohd Akhir Hj Hamzah • “Talent Corp” – Pn Asmaliza Ramlee of Talent Corp • “The Lembaga Zakat Selangor on Zakat Deduction” – En Mohd Sabri Bin Mohd Nor of Lembaga Zakat Selangor • “Union Busting” by MEF Senior Consultant – Industrial Relations Tn Hj Zaikon Jaafar • “Mortgage (Interest) Reduction Planning” by En Franciss Chin, Chief Executive Officer of MRP Advisory Services • “The Role and Responsibility of Private Sectors Towards Fighting Corruption” – En Mohd Yany Yusoff of Malaysian Institute of Integrity • “Suspension and Show Cause Letter” by MEF Senior Consultant – Industrial Relations En Abdullah Abdul Karim

Members discussed and exchanged ideas on various topical human resources and industrial relations issues such as SOCSO’s coverage for foreign workers and expatriates, proposed amendments to labour laws, maternity benefits, unpaid leave calculation and benefits, termination of outsourcing services, transfer of employee, paternity leave, suspension without pay and double punishment.

ANNUAL REPORT 2019 81 Northern Region Meetings In 2019, En Thiru Chandran from Taiyo Resort (Penang) Berhad was re-elected as the Chairman for monthly Northern regional meetings which were held at Penang Golf Club and Safira Country Club.

The MEF Northern Region office continues to assist and represent members in conciliation meetings and cases in Labour and Industrial Courts. The Office also invited speakers from various organisation to the monthly meetings to brief members on various human resources development and industrial issues which included: • “SOCSO Protection for Foreign Workers” by Pn Mohana Priya, Officer of SOCSO Penang • “Types of Termination of Employment” by En Arzanil Bahadon, Deputy Director of Department of Industrial Relations, Penang • “Part-Time Employees Regulations 2010” by En Mohd Azhar Ahmad, Deputy Director of Labour Department, Penang • “E-Filing” by En Shaharil Zamri, Officer of Lembaga Hasil Dalam Negeri, Penang • “Topics of Interest in the Employment Act, 1955” by En Mohd Azhar Ahmad, Deputy Director of Labour Department, Penang • “Social Media & Employment Law” by En TF Leow of Messrs TF Leow & Associates • “Labour Laws” by En H’ng Piau, former Senior Office of Labour Department, Penang • “Overview and Insight on the amendment to the Labour Laws” by En Hong Kam Weng of Hong, Cheah & Co. • “Skima Pencen Pekerja, I-Suri, Skima Mematuhi Syariah dan Skima Caruman Konvensional” by En Azmi Mohd and En Anuar Afifi Omar, Officers of EPF • “Mortgage (Interest) Reduction Planning” by En Franciss Chin, Chief Executive Officer of MRP Advisory Services

In addition, issues of employers’ concerns such as retrenchment, accommodation for foreign workers, HRDF claim, SOCSO Employment Injury Insurance Scheme for expatriates and amendments to Industrial Relations Act were discussed at the monthly meetings.

Southern Region Meetings En Gerard R. Sankar from Gerard & Associates Sdn Bhd was re-elected as the Chairman for Southern Region meetings. The monthly meetings for members in Johor were held at the MEF Johor Office.

The MEF Johor Office also organised two meetings for members in North Johor at the Landmark Hotel, Batu Pahat, Johor. The two meetings were chaired by En Asif Azwan Amdan from Fujitsu Component (M) Sdn Bhd.

82 ANNUAL REPORT 2019 Members discussed and exchanged their views and practices on human resources and industrial relations matters such as fake medical certificate, unpaid medical leave, abuse of drug at the workplace, medical malpractices, foreign workers’ work permit and minimum wages.

Members were briefed by invited speakers on the following topics: • “Short Courses for Industry with University Tun Hussein Onn Malaysia” by Prof. Madya Dr. Wan Fauziah Wan Yusoff, Assistant Vice Chancellor of University Tun Hussein Onn Malaysia • “Critical Cost Reduction for Management” by En Arthur Tay, Senior Financial Consultant of Crescendo International College • “How You can Save Up to 80% of the Total Mortgage Interests through Mortgage (Interest) Reduction Planning” – Mr Franciss Chin, Chief Executive Officer of MRP Advisory Services

MEF Consultant – Industrial Relations also briefed members on the following: • “Transfer and Secondment” • “Sequence in the Conduct of Domestic Inquiry” • “Malingering” • “Highlights on Bill on the Amendment Industrial Relations Act 1967” • “Doctrine of Proportionality Punishment”

East Coast Region Meetings The East Coast region monthly meetings were held at several places in Kuantan which included MEF Kuantan Office, Kuantan Medical Centre, Grand Darul Makmur Hotel, De Rhu Beach Resort, Club Med Cherating, Ancasa Royale Pekan and Far East Holidngs Berhad. Pn Hjh Rosmawati Haron from Kaneka (M) Sdn Bhd was elected as the new Chairman for the East Coast region meetings in 2019.

Following were topics presented by invited speakers and MEF Senior Consultant – Industrial Relations at the meetings: • “Proposals on Amendment of Employment Act 1955” by MEF Senior Consultant – Industrial Relations Tuan Mansor Ibrahim

ANNUAL REPORT 2019 83 • “Mortgage Reduction Planning” by En Franciss Chin, Chief Executive Officer of MRP Advisory Services • “Healthy Smoke Free Workplace” by Assoc. Prof. Dr. Mohammad Haniki Nik Mohamed of International Islamic University Malaysia (IIUM) Kuantan Campus.

In 2019, there were six meetings held in Kelantan and six meetings held for members in Terengganu. The meetings were organised in Kelantan and Terengganu in alternate months.

Members exchanged views, experiences and practices on various human resources and industrial relations matters which included the union busting, overtime calculation, constructive dismissal, habitual lateness and absenteeism, retirement benefits, prolonged illness leave, public holidays, retrenchment and criminal breach of trust.

Perak Office Meetings Dr. Siva Sitrembalan from Finisar Malaysia Sdn Bhd was unanimously re-elected as the Chairman for monthly meetings in Perak for 2019. Under his chairmanship, members sought advice and discussed issues on such as minimum wages, retrenchment benefits, suspension for purposes of domestic inquiry, annual increment, flexible working hours, definition of wages, mental illness and employment of ex-convicts and drug addicts. The Chairman also briefed on recruitment of foreign workers, Employment Act coverage, national wage index, amendments to Industrial Relations Act and foreign workers’ levy.

The invited guest speakers deliberated on the following topics: • “Mediation” by En Abdul Ghafar Abdul Rahman, Assistant Registrar of Industrial Court Perak • “Current Issues Relating to Labour Laws” by En A. Ramadass, MEF Vice-President • “State Government’s Initiatives to Help School Leavers for Employment” by En Jim Khong, Officer of Pusat Aspirasi Anak Perak

84 ANNUAL REPORT 2019 Members were also enlightened with interesting Industrial Court cases by MEF Senior Consultant – Industrial Relations on forced resignation, constructive dismissal, sleeping while on duty and retrenchments. Besides that, the MEF Senior Consultant – Industrial Relations also briefed members on absenteeism and neglect of duties, probation, prevention and eradication of sexual harassment at workplace, honesty and responsibility, bonus, procedures of retrenchment and employees misuse of the social media.

Shah Alam, Subang and Klang Area Meetings In 2019, En Selvanathan Padmanathan of Volvo Malaysia Sdn Bhd was unanimously elected as the Chairman for meetings in Shah Alam, Subang and Klang area which were held at PKT Logistics (M) Sdn Bhd.

The MEF Senior Consultant – Industrial Relations and invited speakers briefed members on the following topics: • “Union Recognition” by MEF Senior Consultant – Industrial Relations Tn Hj Zaikon Jaafar • “How to Prepare for Court Cases” by MEF Senior Consultant – Industrial Relations Pn Prema Kesavan • “Show Cause/ Suspension Letters” by MEF Senior Consultant – Industrial Relations En Abdullah Abdul Karim • “The Duty of the Presenting Officer in a Domestic Inquiry” by MEF Senior Consultant – Industrial Relations Lt Col (R) Hj Mohd Akhir Hj Hamzah • “Saving on Mortgage Interest” by En Franciss Chin, Chief Executive Officer of MRP Advisory Services • “Updates on Possible Amendments to Employment Act 1955” by MEF Senior Consultant – Industrial Relations En Goh Seng Wing • “Possible Amendments to the Industrial Relations Act 1967” by MEF Senior Consultant – Industrial Relations En Goh Seng Wing • “The Doctrine of Superior Orders or the Superior Orders Doctrine” by MEF Senior Consultant – Industrial Relations Tn Hj Zaikon Jaafar • “Integrity” by En Mohd Yanni Yusoff of Integrity Institute of Malaysia

Members sought advices on various issues such as unpaid leave, medical leave, prolonged illness leave, voluntary separation scheme, mutual separation scheme, foreign workers passport, retrenchment, productivity-linked wages system (PLWS), tax clearance, public holidays, FOMEMA and enforcement on payment for overtime.

ANNUAL REPORT 2019 85 Negeri Sembilan Meetings En Periannan Ramasamy from PCA Group Sdn Bhd was unanimously elected as the new Chairman of Negeri Sembilan meetings which were held at Wisma PERKESO, Seremban and Royale Chulan Seremban.

At the meetings, MEF Senior Consultant – Industrial Relations discussed with members on topical issues in industrial relations which included criminal misconduct in employment, managing drugs in employment, managing constructive dismissal cases, updates on possible amendments to Employment Act, guidelines for prosecuting officer/ presenting officer in a domestic inquiry and salient points in redundancy.

Members were also briefed by invited speakers, Mr Franciss Chin of MRP Advisory Services on “Saving on Mortgage Interest” and by En Mohd Yanni Yusoff of Integrity Institute of Malaysia on “National Anti-Corruption Plan (NACP): the Roles and Responsibility of Private Sectors Towards Fighting Corruption in Malaysia”.

Pertinent issues on human resources and industrial relations such as overtime calculation, rest day, deduction of wages, minimum wages, contract of employment and flexible working hours were also discussed at the meetings.

Melaka Meetings Members in Melaka unanimously elected En Vishalini Sankaran from Dominant Opto Technologies Sdn Bhd as the new Chairman for Melaka meetings which were held at Hotel Ramada Plaza Melaka in 2019.

MEF Senior Consultant – Industrial Relations discussed with members on various subject matters which included union recognition, unlawful termination, latest Industrial Court cases, updates on possible amendments to the Employment Act 1955 and proportionality of punishment.

Mr Franciss Chin from MRP Advisory Services presented on “How to Save Up to 80% of Your Total Housing Loan Interests through Mortgage Reduction Planning (MRP)”.

Among the issues discussed at the meetings were leave on trade union business, maximum ceiling for salary structure, deduction of wages due to late coming, termination due to poor performance, replacement of public holiday that fell on an employee off day, employee’s working excessive overtime, transfer of employee within the group, discretionary disciplinary powers of management, validity period of warning letter if employee refuse to accept, casual workers versus part time workers, demotion of an employee, length of a suspension period during investigation and sexual harassment.

86 ANNUAL REPORT 2019 MEF-MAH-AHE Hotel Group Meetings En Rohizat Baharum from Malaysia International Trade and Trade Centre (MITEC) was unanimously re-elected as the Chairman of the MEF-MAH-AHE Hotel Group meetings. Under his chairmanship, meetings were held for six times at several venues namely MITEC, Westin Hotel KL, Equatorial Hotel KL, Wyndham Hotel & Suites KL, Sofitel Damansara and Royale Chulan Damansara.

Among the issues sought for advice and discussed at the meetings were issues related to minimum wages, service charges, amendments to labour laws, transgender issues, closure of hotels and depression at the workplace.

Invited speakers from various Government agencies such as TalentCorp, SOCSO, Malaysia Aids Foundation and Ministry of Human Resources also presented on various issues which included employers’ contribution to SOCSO, employment of foreign workers, minimum wages in hotel industry, HRDF contribution and apprenticeship programme.

Sarawak Meetings Meetings for members in Sarawak were held at Kuching, Sibu, Miri and Bintulu. Under the chairmanship of Pn Siti Rahimah Abdul Rahman of Kuching Specialist Hospital, meetings in Kuching were held twice in June and December 2019 at Wisma PERKESO Kuching. Meetings for members in Sibu, Miri and Bintulu were held at RH Hotel Sibu, Meritz Hotel Miri and Kemena Plaza Hotel, Bintulu.

Members were briefed by invited speakers on the following matters: • “Proposed Amendments to Sarawak Labour Ordinance (Sarawak Cap. 76)” by Pn Nur Huda and En Anthony Lawai of Sarawak Labour Department • “Corporate Liability Provision of the Malaysia Anti-Corruption Commission (MACC) Act 2009 (Amended 2018)” by En Chang Ching of Malaysia Anti-Corruption Commission Sarawak Officer.

ANNUAL REPORT 2019 87 The MEF Consultant – Industrial Relations also presented to members topical industrial relations issues which included misconduct in employment, sexual harassment, sleeping on duty, fighting in company premises and negligence by employees.

Sabah Meetings In 2019, En Al’freedo Mohd Yahya from Sutera Harbour Resort was re-elected as the Chairman for Sabah regional meetings which were held at MEF Office in Kota Kinabalu.

Under his chairmanship, guest speakers were invited to the meetings to brief and update members on the following matters: • “Special Voluntary Declaration Program and Other Issues’” by En Muliadi Moktar of Lembaga Hasil Dalam Negeri Sabah. • “Inspection of Office Premise by Labour Officers & What to Expect” by Pn Christina Fabianus of Labour Department, Sabah • “Pindaan Akta Keselamatan dan Kesihatan Pekerjaan” by Pn Jinurah Sintian of Department of Occupational Safety and Health (DOSH), Sabah • “Managing Employee Finances for Better Financial Health and Productivity” by En Wilfred Lim, Vice President, Small & Medium Enterprise Association of Sabah (SME Sabah) • “Skim Peningkatan Produktiviti Enterprise (SPPE) 2019” by En Darul Adizul Ishak, Malaysian Productivity Corporation (MPC). • “HRDF Award: Beyond Recognition” by Cik Yuko Kyogoku of Borneo Eco Tours “Special Briefing on HRDF” by En Emmanuel Joseph of Pembangunan Sumber Manusia Berhad • “Functions and Roles of Trade Union Department and Current Issues Regarding Trade Union” by En Deby Rustman Mantipan of Department of Trade Unions, Sabah

In addition, MEF Associate Consultant – Industrial Relations also made presentations for members of the meetings on “Understanding Termination, Lay- Off and Retirement Benefits”, “Keeping Up With the Latest Industrial Court Awards”, “Managing Employees’ Hours of Work and Rest Breaks” and “A Brief Look at the Proposed Amendments to the Sabah Labour Ordinance”.

88 ANNUAL REPORT 2019 Current issues affecting employers in Sabah such as labour inspection, contribution to SOCSO, transportation to work, minimum rest period, differences between contract of service and contract for services, recruitment of foreign workers in Sabah, managing office romance or inappropriate conduct at the workplace and proposed amendments to Sabah labour laws were also discussed at the meetings.

On 22 November 2019, MEF Sabah Office collaborated with Malaysia Productivity Corporation (MPC) Sabah to jointly organise “MPC - Hari Produktiviti Bersama MEF” at The Magellan Sutera, Kota Kinabalu to promote LEAN Management System training among SMEs in Sabah.

The meeting aimed at enhancing business productivity and competitiveness through development of human capital, by nurturing innovative and creative business culture. About 50 participants representing the SMEs employers in Sabah attended the session.

MEF President Tan Sri Azman Shah Dato’ Seri Haron was invited to provide keynote address at the session. MEF Senior Manager – Membership and Public Relations Pn Haslena Ismail briefed the participants on MEF role, functions and activities. The signing of the Memorandum of Understanding (MoU) ceremony was held between MEF President Tan Sri Azman Shah and the Director-General of MPC Dato’ Abdul Latif Hj Abu Seman.

ANNUAL REPORT 2019 89 MEF ACADEMY 2019

The MEF Academy brings into reality the Malaysian Employers Federation’s (MEF) vision of being the pioneer institution to merge the tripartite requirements of the employer/ employment market, the education industry as well as the individual/human resource development needs. MEF Academy proudly presents a comprehensive range of corporate training programs for MEF members, non members and the general public. All programmes are offered as public programmes and customized in-house programmes. MEF Academy has also extended its training programmes regionally and courses are now conducted within ASEAN countries. In addition, MEF Academy has developed industry focused courses including Masters, Degree, Diploma, Certification courses and continuous professional education to provide opportunity for working personnel to upskill and obtain academic and professional qualifications. MEF Academy certification and academic courses are in collaboration and endorsed by International Labour Organisation (ILO), Swinburne University of Technology, University Malaysia Sarawak and University of Northampton.

MASTERCLASS IN BUSINESS STRATEGY, GOVERNANCE & LEADERSHIP [Masters in Business Administration – Part 1]

MEF Academy in collaboration with Swinburne University of Technology offered the Masterclass in Business Strategy, Governance and Leadership in 2019. This course was specially designed based on the Swinburne University’s Masters in Business Administration (MBA) program. Satisfactory completion of the Masterclass provided eligible participants an accelerated pathway to the prestigious Australian MBA

Swinburne University is a large multi-sectoral and multi-campus Australian institution with the mission of being an eminent entrepreneurial university in the Asia-Pacific region. Swinburne University, accredited by AACSB has campuses in metropolitan Melbourne and an overseas branch campus university in Sarawak in Malaysia. It also offers an increasing number of innovative online programs. Its programs cover the education and training needs of over 40,000 students ranging from apprentices to doctoral students. Swinburne is committed to innovative education, strong industry engagement and social inclusion.

This Masterclass aimed to upskill and develop Malaysian Managers and Executives to meet the challenges of globalization and the rapid changes in technology and innovation which would elevate participants’ career to the top of business leadership hierarchy. The course was delivered using a combination of online engagement and face-to-face sessions. Throughout the course, participants were guided by an online narrative, which also hosts reading materials, notes, case studies and discussion forums.

90 ANNUAL REPORT 2019 In 2019, the Masterclass consisted of 4 units blended learning was delivered via online E-Learning and classroom courses. The 4 units below were delivered by MEF Academy and Professors/Lecturers from the Swinburne University, Sarawak Campus: Module 1 : Behaviour in Organisations Module 2 : Ethics and Governance Module 3 : Management Analysis and Problem Solving Module 4 : Leadership and Innovation

The Masterclass comprised of 13 candidates who were partly funded under the Human Resource Development Fund (HRDF) INDCERD strategic incentive scheme, identified by the Sectorial Training Committees of HRDF. The Final Part of the Masters in Business Administration (MBA), consisting of another 4 Modules and Research Methodology has been scheduled in 2020.

Master of Arts in Human Resource Management (Top-Up)

The second intake of the Master of Arts – Human Resource Management, a programme awarded by the prestigious University of Northampton (UON), United Kingdom commenced in November 2019 comprising of 14 candidates who were partly funded under the Human Resource Development Fund (HRDF) INDCERD strategic incentive scheme, identified by the Sectorial Training Committees of HRDF.

This Top-Up Master programme specially designed for working adults with basic Bachelor Degrees or equivalent and Recognition of Prior Learning (RPL) covered the following modules: • Contemporary Human Resource Management • Resourcing, Talent Management and Development • Performance Management • Leading, Managing and Human Resource Development • Employee Relations • Investigating a Business Issue from a Human Resource Perspective • Research Methodology

The course was delivered on a part time blended learning basis via the online E-Learning Management System and classroom courses by MEF Academy and the Flying Faculty members from the University of Northampton, United Kingdom. Upon successful completion of the online examinations, students would continue with the University of Northampton, UK for their dissertation towards achieving the Master of Arts (MA) in Human Resource Management (HRM).

ANNUAL REPORT 2019 91 Executive Bachelor in Human Resource Management & Industrial Relations

MEF Academy continued the Executive Bachelor in Human Resource Management & Industrial Relations course in collaboration with Open University Malaysia (Institute of Professional Development) for the intakes as follows: • EBHRMIR Intake 2014/2017 – completed and scrolls received from OUM • EBHRMIR Intake 2015/2018 – completed and scrolls received from OUM • EBHRMIR Intake 2016/2019 – completed in 2019 • EBHRMIR Intake 2017/2020 – continuing in 2019/2020

SPECIAL TRAINING PROJECT IN 2019 (IN-HOUSE PROGRAMME)

MEF Academy was appointed by Panasonic Appliances Air-Conditioning Malaysia Sdn Bhd (Panasonic) to conduct a series of training on Performance Management & Key Performance Indicators over duration of September to December 2019. The objectives of the 4 months training project were to assist the Panasonic Corporate Human Resource Department to roll out the new Performance Management Systems and facilitate the development of Key Performance Indicators (KPIs) within the departments of the company. There were a total of 29 training sessions conducted at the Panasonic offices in Shah Alam with a total of 541 participants comprising of Senior Managers (Department Head), Middle Managers (Section Head), Senior Executives and Executives.

PROFESSIONAL ACADEMIC COURSES

Executive Diploma in Industrial Relations The MEF Academy – Executive Diploma in Industrial Relations is in its 23rd year and the 2019/2020 intake was launched on 23 November 2019. The Executive Diploma in Industrial Relations is an in-depth advanced course, highly acclaimed by the private sector, as the only comprehensive industrial relations course endorsed by the International Labour Organization (ILO). The syllabus covers both theory and practice covering the entire scope of industrial relations and labour laws in Malaysia as well as global perspective of the labour laws framework.

92 ANNUAL REPORT 2019 Executive Diploma in Human Resource Management The Executive Diploma in Human Resource Management offered in October 2019, provides participants with a blend of human resource (HR) planning and implementation of effective HR management initiatives, covering crucial elements of industrial relations, occupational safety and strategic integrated HRM. This is also a highly distinctive course, conducted by human resource practitioners, legal consultants and representatives from the ILO.

Certificate in Industrial Relations The MEF Academy-UNIMAS Accredited Certificate in Industrial Relations, which commenced with 24 participants on 20 July 2019, enabled participants to acquire the formal competency standards required for effective application of the industrial relations functions within an organization and would receive Certification qualification from the Business School of University Malaysia Sarawak (UNIMAS). The certification objective is to formalize the competency standards required for effective application of the industrial relations activities within an organization and provide basic qualification and recognition for human resource and industrial relations non-executives, clerical assistants and executives. The course consists of 6 modules covering Employment and Industrial Relations laws, discipline, termination and union matters. Upon successfully completing the examinations, participants would receive Certification qualification from the Business School of UNIMAS and MEF Academy.

Certificate in Human Resource Management The MEF Academy-UNIMAS Accredited Certificate in Human Resources Management was conducted on 13 July 2019 with 18 participants. Participants acquired the formal competency standards required for effective administration of HR. The course consists of 5 modules covering HR Administration, performance management as well employment and safety laws. Upon successfully completing the examinations, participants would receive Certification qualification from UNIMAS and MEF Academy.

RECOGNIZED CERTIFICATIONS ISSUED BY SWINBURNE UNIVERSITY OF TECHNOLOGY, SARAWAK CAMPUS CONDUCTED BY MEF ACADEMY IN 2019 MEF Academy successfully offered and conducted certification courses, recognized and issued by the Swinburne University of Technology, Sarawak Campus in 2019 as follows:

Certified CSR and Sustainability Management Professional • 16 & 17 April 2019 • 22 & 23 October 2019 The MEF Academy — Swinburne University Certified CSR & SM Professional provides practitioners the knowledge and skills on the required labour and human rights,

ANNUAL REPORT 2019 93 environmental care, legal compliance and observance of international initiatives and conventions, consumers’ interest and engagement with all stakeholders. For public companies, they would need to report such activities in their annual reports. Local companies which may be part of the global supply chain would also have to be in compliance with their principal offices on social responsibilities.

Certified Training Needs Assessor • 1 & 2 August 2019 • 12 & 13 November 2019 The MEF Academy – Swinburne University Certified Training Needs Assessor provides participants with the knowledge and skills to proper conduct and implement the TNA using the various tools and propose the different method of training in accordance to the complete employee development. The course is designed to provide understanding of competency mapping in TNA and blending in the Competency Model with Organization’s Competency Framework.

Certified Professional Trainer • 28 – 30 May 2019 The MEF Academy – Swinburne University Certified Professional Trainer provides participants with a solid foundation in understanding the strategic role of training and the step-by-step approach of developing and delivering effective training programs. The 3-days workshop covers understanding of Instructional Design, the ADDIE Model as well as the application of Learning Theories and Principles of Adult Learning.

Certificate in Competency Based Human Resource Management • 21 & 22 October 2019 The MEF Academy – Swinburne University Certificate in Competency Based Human Resource Management is designed for individuals who are undertaking competency modeling or performance initiatives in their organizations and are looking to build personal capability in Competency-Based Human Resources Management. Participants would learn how to develop a cost-effective competency model and review how to align the competency model with the organization’s strategic initiatives.

94 ANNUAL REPORT 2019 Certified Performance Culture Professional • 16 & 17 July 2019 • 23 & 24 July 2019 This MEF Academy – Swinburne University certification enables participants to explore the underlying values of a strong corporate culture in an organization and its ability to maintain its productivity and performance that is sustainable and continues to keep the market share. This leads to the development and the importance of a high-performance work culture. Organizational culture develops over time – by visionary leaders, through critical incidents and environmental influences. How the organization succeed in the competitive environment would very much depend on many operational factors in the workplace as well as recognizing the people culture, technology advances and the practice of good governance.

Leadership & Governance in Management The MEF Academy – Swinburne University certification on Leadership & Governance in Management is a 2-day workshop on the Management roles which have evolved with globalization, competition, technology advances in production and rapid development in technology as well as the impact of the new generation of work force and new work culture. Managers have to grapple with a full employment market and the populist policies on “Work Life Balance” and “Flexible Work Arrangement”!

Managing Complexities by Embracing Simplicity and Essentialism The MEF Academy – Swinburne University certification on Managing Complexities by embracing simplicity and essentialism enables participants to identify and explore how systems that used to be separate are now interconnected and interdependent in today’s hyper connectivity, management have to cope with complexity and manage a complex organization. Corporate failures in some cases are due to the absence and commitment of the leaders in simplicity.

RECOGNIZED CERTIFICATIONS ISSUED BY UNIVERSITY MALAYSIA SARAWAK (UNIMAS) BUSINESS SCHOOL CONDUCTED BY MEF ACADEMY IN 2019:

Certified Professional Leadership in Management • 13 & 14 February 2019 • 9 & 10 April 2019 • 24 & 25 September 2019 The MEF Academy-UNIMAS Certified Professional Leadership in Management, conducted as above is designed to develop the core skills that demands transition from traditional

ANNUAL REPORT 2019 95 managing to leadership style of management and the strategies to reshape the organization, aligning, motivating and controlling of people. Participants acquired the formal competency standards required to manage change, challenges and culture of Leadership Management and received Certification qualifications from the Business School of University Malaysia Sarawak.

Certified Job Analysis Specialist • 4 & 5 December 2019 The MEF Academy-UNIMAS Certified Job Analysis Specialist, conducted as above is designed to develop the appropriate skills and acquire the formal competency standards required to analyse and evaluate jobs that match with fair remuneration & rewards to achieve the organization goals. Participants received Certification qualification from the Business School of University Malaysia Sarawak.

Certificate in Performance Coaching & Counselling • 12 & 13 February 2019 • 22 & 23 July 2019 The MEF Academy-UNIMAS Accredited Certificate in Performance Coaching & Counselling, conducted as above, provides practical knowledge and skills for individuals to develop professional interpersonal communication skills leading towards supporting motivation, behaviour change and conflict resolution at the workplace. Participants received Certification qualification from the Business School of University Malaysia Sarawak.

Certified Trainer On the Job Training (OJT) • 3 & 4 September 2019 The MEF Academy-UNIMAS Certified Trainer on the Job Training (OJT), provides practical knowledge and critical skills as a “Certified OJT Trainer” to ensure effective transfer of knowledge in a structured program to develop employee’s knowledge & skills while maintaining a higher productivity and keeping cost low within the organisation. Participants received Certification qualification from the Business School of University Malaysia Sarawak.

96 ANNUAL REPORT 2019 CORPORATE COURSES AND SEMINARS CONDUCTED IN 2019 MEF Academy also conducted a wide spectrum of training as scheduled public courses and customised in-house courses. The corporate courses conducted for MEF members and the public include Industrial Relations, Occupational Safety, Human Resources Management, Business, Finance as well as Information and Communication Technology (ICT) courses. Some of the courses listed as follows:

COURSES & SEMINARS CONDUCTED IN 2019 INDUSTRIAL RELATIONS & HUMAN RESOURCE MANAGEMENT & BUSINESS, FINANCE & OCCUPATIONAL SAFETY COURSES DEVELOPMENT COURSES MANAGEMENT COURSES

Disciplinary Procedures Gear Up to Leadership Management Finance for Non-Finance Executives Seminar

Employment Act 1955 Leadership Styles: Creating Impact on Business performance Effective Time Management Employment (Amendment) Act 2011 Emerging CSR Trends & Impact on Biz Positive Work Attitude/ Culture Industrial Relations Act 1967 Competency Based Interviews Kemahiran Penyeliaan Collective Bargaining Business Writing - Made Simple Kerani Cemerlang Handling Misconduct & Domestic Inquiry Business Communication Skills HR for Beginners Akta Kerja 1955 Business English Think & Decide Beyond the Box Pengendalian Siasatan Dalaman & Winning Difficult Customers Managing Difficult Employees Pendakwaan Termination of Employment Power of Coaching & Counselling Clerical Development Skills HR for Non-HR Professional Communication & Interpersonal Skill Get Organised & Set Your Record Straight

Managing Misconduct & Performance Effective Performance Appraisals Selection Interviewing Skills Improvement Plan Criminal Misconduct in Employment Training Techniques for Trainers Interview, Not Interrogate

Writing a Contract of Employment - Training Impact - What Next? Customer Service Skills Essential Features and Avoiding Pitfalls NADOPOD Communication & Emotional Intelligence Five Star Customer Service Developing a Job Safety Analysis Managing People & Performance How to be a Winner, Not a Whiner OSH Act 1994 Techniques & Etiquette of the Business Telephone The Professional Manager

Formation of an Effective Safety & First Impression – Public Speaking Effective Supervisory Skills Health Committee OSH at Workplace Sikap Kerja Positif Managing Change

Hazard Identification, Risk Assessment & Leading Change Within Your Team Risk Control Fire & Emergency Response Plan

ANNUAL REPORT 2019 97 • IR Public Training Courses (2009 – 2019)

IR Public Courses

2019 36

2018 31

2017 37

2016 35

2015 46

2014 43

2013 29

2012 35

2011 30

2010 33

2009 22

0 10 20 30 40 50

• HR & OSH Public Training Courses (2009 – 2019)

HR & OSH Public Training Courses

2019 55

2018 64

2017 62

2016 53

2015 69

2014 55

2013 69

2012 56

2011 46

2010 65

2009 45

0 10 20 30 40 50 60 70 80

98 ANNUAL REPORT 2019 • IR Courses Conducted In-House (2009 – 2019)

IR In-House Courses

2019 44

2018 39

2017 34

2016 64

2015 62

2014 76

2013 65

2012 63

2011 57

2010 78

2009 55

0 10 20 30 40 50 60 70 80 90

• HR & OSH Courses Conducted In-House (2009 – 2019)

HR & OSH In-House Courses

28 2019 27 2018 52 2017 40 2016

54 2015

82 2014

66 2013

2012 76

2011 77

2010 73

2009 53

0 10 20 30 40 50 60 70 80 80

ANNUAL REPORT 2019 99 INTERNATIONAL MEETINGS/ SEMINARS 2019

AOTS – Workshop of Joint Study on “Globalization and New Technologies – How do globalization and new technologies such as AI and RPA change companies’ competitive environments and the labour markets?” 21 – 25 January 2019, Phnom Penh, Cambodia Datuk Hj Shamsuddin Bardan – MEF Executive Director Cik Lee Yoke Wan – MEF Senior Manager, Research & Information

AOTS – The Program on Industrial Relations and Human Resource Management [ERHR2] 17 – 31 January 2019, Tokyo, Japan En Muhammad Syazwan Rahim of BI Technologies Corporation Sdn Bhd

ILO – Informal Tripartite Consultation Concerning the Standard-Setting Discussion on “Ending Violence and Harassment in the World of Work” 14 – 15 March 2019, Geneva, Switzerland Datuk Hj Shamsuddin Bardan – MEF Executive Director

Employers’ Side Meeting 3 April 2019, Manila, Philippines En A. Ramadass, MEF Vice-President Datuk Hj Shamsuddin Bardan, MEF Executive Director

2nd ACE- ATUC Meeting 4 – 5 April 2019, Manila, Philippines Datuk Hj Shamsuddin Bardan, MEF Executive Director

44th ACE CEOs and BODs Meeting 6 April 2019, Manila, Philippines En A. Ramadass, MEF Vice-President Datuk Hj Shamsuddin Bardan, MEF Executive Director

Singapore Conference on the Future of Work 28 – 30 April 2019, Singapore Tn Hj Abdul Wahab Abu Bakar, MEF Council Member

100 ANNUAL REPORT 2019 AOTS – Program for Leaders of Employers’ Organisations and for Successful Former Participants – 1 [EREF-1] 3 – 7 June 2019, Tokyo, Japan Pn Goh Lea Koon, MEF Senior Research Analyst

108th Session of the International Labour Conference 10 – 21 June 2017, Geneva, Switzerland En A. Ramadass, MEF Vice-President Datuk Hj Shamsuddin Bardan, MEF Executive Director

ILO /ASEAN Seminar – The Future of Social Protection in ASEAN 4 – 5 July 2019, Bangkok, Thailand Datuk Hj Shamsuddin Bardan, MEF Executive Director

Workshop on “Employers’ and business members organizations and SDGs” (A3712324) 9 – 11 July 2019, Bangkok, Thailand Pn Maslifa Masmuda, MEF Senior Research Analyst – Survey & Information Cik Norkhalidah Nordin, MEF Marketing Executive

UMFCCI Employers’ Service Suite Event 27 July 2019, Yangon, Myanmar Datuk Hj Shamsuddin Bardan, MEF Executive Director

AOTS – The Program on Industrial Relations and Human Resource Management [ERHR1] 20 August – 3 September 2019, Tokyo, Japan Pn Shakila Subiah, Human Resources Manager of Subsea 7 Asia Pacific Sdn Bhd

The Ninth Tripartite Regional Seminar on Industrial Relations in the ASEAN Region 8 – 19 September 2019, Chiba-prefecture, Japan Tn Hj Zaikon Jaafar, MEF Senior Consultant – Industrial Relations

3rd Asia Regional Meeting of European Commission (EU) Policy Forum on Development 24 – 26 September 2019, Kathmandu, Nepal Tn Hj Abdul Wahab Abu Bakar, MEF Vice-President

ANNUAL REPORT 2019 101 12th ASEAN Forum on Migrant Labour (AFML) 25 – 26 September 2019, Bangkok, Thailand En Mohd Zakri Baharudin, MEF Senior Manager – Employer Affairs

Third Meeting of the Intersessional Process (IP3) for Considering the Strategic Approach to International Chemicals Management (SAICM) and the Sound Management of Chemicals and Waste Beyond 2020 30 September – 4 October 2019, Bangkok, Thailand En Anis Fahmy Pauzi, MEF Consultant – Occupational Safety, Health & Environment

Annual Meeting of the ILO Global Business Network on Forced Labour 21 October 2019, Berlin, Germany Pn Saraswathy Ravindran, MEF Senior Consultant – Industrial Relations

ILO/Korea Training Workshop on Employment Insurance (EI) 28 October – 2 November 2019, Seoul, Republic of Korea En Abdullah Abdul Karim, MEF Senior Consultant – Industrial Relations

Knowledge Sharing Trip of Malaysia to Uzbekistan – “From Protocol to Practice: A Bridge to Global Action on Forced Labour” 4 – 6 November 2019, Tashkent, Uzbekistan Datuk Hj Shamsuddin Bardan, MEF Executive Director

Asia Regional Conference – Reaching SDG Target 8.7 on Forced Labour, Human Trafficking and Child Labour 20 – 22 November 2019, Kathmandu, Nepal Cik Lee Yoke Wan, MEF Senior Research & Information Manager

ACE Panel Discussions for the 10th ASEAN Regional Tripartite Social Dialogue 16 – 17 December 2019, Bangkok, Thailand En Mohd Zakri Baharudin, MEF Senior Manager – Employer Affairs

102 ANNUAL REPORT 2019 MEF REPRESENTATIVES TO OTHER ORGANISATIONS

National Labour Advisory Council (NLAC)

Substantive Members Alternate Members Tan Sri Azman Shah Dato’ Seri Haron Dato’ Ahmad Nadzarudin Abdul Razak En A. Ramadass Tn Hj Mohd Farid Shah Mohd Basir Tn Hj Abdul Wahab Abu Bakar Tn Hj Zulkifli Abdul Rahman En Christopher S. Raj, KMN En Choy Toong Seng Dato’ Palaniappan Joseph Pn Giam Siew Tho Tn Hj Mohammed Amin Aziz Dato’ Mohideen Bathusha M. Shaik Dawood Dato’ Dr Lim Weng Khuan Pn Nadiah Tan Abdullah Dato’ Sri Tan Thian Poh Dato’ Raiha Azni Abd Rahman Assoc. Professor Dr. Michael Chiam Tow Hui En Mohd Syukri Ahmad Sudari En Alan Khoo Choom Kwong Datuk Seri Panglima Wong Khen Thau Datuk Nora Abd. Manaf Tan Sri Dato‘ Dr. Mohd Noor Ismail (Tan Sri Dato’ Dr. Mohd Noor Ismail passed away on 13.07.2020) Pn Anne Kung Soo Ching Pn Peggy Chew Being Being Datuk Hj Shamsuddin Bardan En M. Venugopal

The Malayan Agricultural Producers Association’s (MAPA) Representatives at NLAC

Substantive Members Alternate Members Tn Hj Mohamad Helmy Othman Basha En Loh Hang Pai En Teh Sar Moh Nee En Hairuzzaman Sagi Tn Hj Mohamad Audong En Chandra Segaran Thiagarajah

ANNUAL REPORT 2019 103 Employees Provident Fund Tan Sri Azman Shah Dato’ Seri Haron

Pembangunan Sumber Manusia Berhad (PSMB) Substantive Member Dato’ Raiha Azni Abd Rahman

Malaysian Productivity Corporation (MPC) Member of MPC Board Tan Sri Azman Shah Dato’ Seri Haron

Hospitality Committee of MPC Tan Sri Azman Shah Dato’ Seri Haron

National Institute for Occupational Safety and Health (NIOSH) Datuk Hj Shamsuddin Bardan

National Council for Occupational Safety and Health (NCOSH) Dato’ Dr. Syed Hussain Syed Husman, J.P.

National Skills Development Council (NSDC) Member Datuk Hj Shamsuddin Bardan

SOCSO Appellate Board

JRKS Northern Region Pn Saravani Devi Muruthy En Thiruchandran N.S. Thiru Selva Pn Harjit Kaur Atma Singh En Md Ismail Wahidin Pn Komathi Goonaseram Pn G. Kasthuri Ganesan En Lloyd Lee Bun Aik Cik Lim Guat Cheng En Saiful Azli Saiful Ridzwan En Lee Chee Wee

104 ANNUAL REPORT 2019 JRKS Perak En Soong Kok Hong En Rajendran Rengasamy Dr. Teh Choong Hee Cik Felicia Chea Li Ling En Maruthavaanam Ponnusamy En Mohamad Sait Abdul Hamid En Saw Lip Chye, Lawrence En Cha Poh Onn Dr. Paramasivam Sitrembalan Pn Wong Har Lian, Linda

JRKS Selangor (1) Tn Hj Mohammed Amin Aziz Pn Sarita Beram Shah @ Rajaram En Vethamuthu R. Samy Kanoo En Mohd Farikh Mohd Said En Koay Kah Ee Pn Siti Rosnani Samsudin En Mohd Yusri Athanasuis Abdullah En Hendry Asokan David@Supramaniam En Zulkifli Othman Pn Nor Aishah Osman

JRKS Selangor (2) En Venugopal Muniandy Tn Hj Zulkifli Abdul Rahman Tn Hj Razali Dato’ Hj Rahmat En Terence Raj D. John Jaganathan En Azzuddin Buxton Abdullah En Hairuzzaman Sagi Pn Lee Poh Teng Pn Sew Yee Sir En Mohd Asymawi Rosli Pn Haliza Zainal Abidin

JRKS Kuala Lumpur (1) Pn Nawal Hanafiah En Mohd Nazlan Osman En Mahendran Ganesan Pn Hezlina Hashim En Hishamuddin Mon En Muhammad Rawi Ravi Abdullah En Alan Senil Netto En Lam Yoo Yuen En Murali Tharan Nair Narayana Nair En SiMunir Abbas

ANNUAL REPORT 2019 105 JRKS Kuala Lumpur (2) En Akmal Hamdi Hassan En Sathiabalan Selvaraju En Sugumaran Govindasamy En Nor Faizal Md Nor En Cheah Cheng Hai En Anandaraju Mookkapillai En Roslan Yaakub En Rohizat Baharum Pn Sharifah Sheikha Syed Tahir Cik Ungku Farah Ungku Shafik

JRKS Southeast Region En Zufri Ja’afar En Che Zulhaimee Abdullah Pn Tan Foon Mee En Noor Azizi Ismail Pn Junaida Ahmad En S. Ganesan Moorthi Suppiah

JRKS Johor En Gerard Ronald Sankar En Asif Azwan Amdan En Rosli Sham En Syahrizan Syahrim Abdul Majid En Hasri Ab Latif En Mohd Nor Abdullah

JRKS East-Coast Region Pn Rosmawati Haron Pn Maznah Ibrahim Tuan Mansor Ibrahim Pn Hjh NorKamariah Othman En Azli Norali Pn Afizan Sharina Mohamad En Mat Noor Awang Pn Wan Zulhairiah Wan Ali @ Wan Damsek En Zarinul Hisham Kassim En Mustaffa Musa

106 ANNUAL REPORT 2019 JRKS Sabah Pn Patricia @ Petsy P. Tiasing En Chaw Zie Shing @ Tseu Tsu Shing Pn Zazurainny Zainuddin En Chu Tai Vun En Henry Balenting En Ismail Nizamuddin Othman En Mohd Al’Freedo Mohd Yahya En Mohammad Halfee Salam En Nobert Xavier Chin En Shamsiran Astain

JRKS Sarawak Pn Anne Kung Soo Ching En George Young Si-Ricord Junior En Hussain Taiban Pn Keoh Cheng Kim En Chang Eng Soon Pn Maureen John Labarge En Japanie Bujang

Industrial Court Consultative Panel Members En A. Ramadass Datuk Hj Shamsuddin Bardan

Institut Integriti Malaysia Assoc. Prof. Dr. Michael Chiam Tow Hui

ISO National Mirror Committee on Social Responsibility Principal Member & Industry Expert (Malaysia) on Social Responsibility Technical Committee : Working Group on Business Continuity Management Standards Assoc. Prof. Dr. Michael Chiam Tow Hui

Economic Planning Unit - National Advisory Council on Education & Training Member Tan Sri Azman Shah Dato’ Seri Haron

ANNUAL REPORT 2019 107 PEMUDAH – (Pasukan Petugas Khas Pemudah Cara Perniagaan) (Special Task Force to Facilitate Business) Member (Private Sector) Tan Sri Azman Shah Dato’ Seri Haron (Co- Chairman of Working Group of Efficiency Issues (WGEI))

Malaysian Arbitral Tribunal KL Arbitral Panel/ Mediator – Panel Member Tn Hj Mohammed Amin Aziz

Department of Polytechnic & Community College Education, Ministry of Higher Education, Malaysia Member Tan Sri Azman Shah Dato’ Seri Haron - Chairman of Industry Advisory Committee

National Wages Consultative Council (NWCC) Member Tan Sri Azman Shah Dato’ Seri Haron En A. Ramadass En Mohamad Helmy Othman Basha En Alan Khoo Choom Kwong Dato’ Henry Lau Lee Kong Datuk Hj Shamsuddin Bardan

Standard Perindustrian Pengurusan Organisasi (ISCO) under Department of Standards, Ministry of Science, Technology & Innovation Principal Member Assoc. Prof. Dr. Michael Chiam Tow Hui

Alternate Member Tn Hj Zulkifly Abdul Rahman

Cleared Advisor – Technical Vocational Education (TVET) Member Tan Sri Azman Shah Dato’ Seri Haron

Industry Standards Committee – OSH (ISC W) Member Tn Hj Anis Fahmy Pauzi

108 ANNUAL REPORT 2019 MEF INDUSTRIAL RELATIONS PANEL MEMBERS

Chairman En A. Ramadass Ramadass & Associates

Regional Representatives Northern Region En Thiru Chandran N. S. Thiru Selva Taiyo Resort (Penang) Bhd (Penang Golf Club)

Perak Dr. Siva Sitrembalan Finisar (M) Sdn Bhd

Central Region Tn Hj Mohammed Amin Aziz A.P. Search Management Recruitment Sdn Bhd

Shah Alam En Selvanathan Padmanathan Volvo Malaysia Sdn Bhd

Melaka Pn Vishalani Sankaran Dominant Opto Technologies Sdn Bhd

Negeri Sembilan En Periannan Ramasamy Polymer Composite Asia Sdn Bhd

East Coast Region Pn Rosmaati Haron Kaneka (M) Sdn Bhd

ANNUAL REPORT 2019 109 Southern Region En Gerard Ronald Sankar Gerard & Associates Sdn Bhd

North Johor En Asif Azwan Amdan Fujitsu Components (M) Sdn Bhd

Hotel Group En Rohizat Baharum Prisma Galeri Sdn Bhd

Association Members’ Representatives En Alam Khoo Choom Kwong Sabah Employers’ Consultative Association (SECA)

En Lam Yoo Yuen Malayan Commercial Banks’ Association (MCBA)

En Mohd Syukri Ahmad Sudari Association of Insurance Employers (AIE)

Dato’ Ir. S. S. Subramaniam Malaysian Chamber of Mines (MCM)

Pn Nawal Hanafiah Commercial Employers’ Association of Peninsular Malaysia (CEAPM)

En Christopher S. Raj, KMN Association of Hotel Employers (AHE)

En Cheah Swee Hee Malaysian Association of Hotels (MAH)

Pn Anne Kung Soo Ching Sarawak Chamber of Commerce and Industry (SCCI)

Pn Peggy Chew Being Being Sarawak Timber Association (STA)

110 ANNUAL REPORT 2019 Tn Hj Mohamad Audong The Malayan Agricultural Producers Association (MAPA)

Dato’ Mohideen Bathusha M. Shaik Dawood The Stevedore Employers’ Association, Penang and Province Wellesley (SEA)

Dato’ Sri Tan Thian Poh Malaysian Textile Manufacturers Association (MTMA)

Mrs Elisabeth Laubel Malaysian French Chamber of Commerce & Industry (MFCCI)

Nominated Members Dato’ Dr. Lim Weng Khuan Tan Chong Group

Tn Hj Razali Dato’ Hj Rahmat @ Ali Mhd SRT-EON Security Services Sdn Bhd

En Muhar Khairuddin Syarikat Prasarana Malaysia

En Samarasam Krishnan Malaysian Resources Corporation Berhad

Tn Hj Mohd Farid Shah Mohd Basir Telekom Malaysia Berhad

En Simunir Abbas Bank Pertanian Malaysia Berhad

Pn Sarita Beram Shah Huber+Suhner (Malaysia) Sdn Bhd

ANNUAL REPORT 2019 111 MEF HEALTH, SAFETY & ENVIRONMENT ADVISORY COMMITTEE

Chairman Dato‘ Dr. Syed Hussain Syed Husman, J.P. – Chairman SVTT Resources Sdn Bhd

Members Assoc. Prof. Dr. Michael Chiam Tow Hui Commercial Employers’ Association of Peninsular Malaysia (CEAPM)

Tn Hj Mohamad Audong The Malayan Agricultural Producers Association (MAPA)

En Mohd Syukri Ahmad Sudari Association of Insurance Employers (AIE)

Pn Peggy Chew Being Being Sarawak Timber Association (STA)

Dato’ Ahmad Nadzarudin Abdul Razak Golden Pharos Berhad

Datuk Hj Shamsuddin Bardan Malaysian Employers Federation

Tn Hj Anis Fahmy Pauzi Malaysian Employers Federation

112 ANNUAL REPORT 2019 EMAIL – MEF COUNCIL (2018 – 2020)

President Tan Sri Azman Shah Dato’ Seri Haron [email protected]

Vice-Presidents En A. Ramadass [email protected] Tn Hj Abdul Wahab Abu Bakar [email protected] Dato’ Ir. S.S. Subramaniam [email protected] En Christopher S. Raj, KMN [email protected]

Honorary Treasurer Dato’ J. Palaniappan [email protected]

Council Members Tn Hj Mohammed Amin Aziz [email protected] Dato’ Dr Syed Hussain Syed Husman, J.P [email protected]; [email protected] Tn Hj Zulkifly Abdul Rahman [email protected] Tn Hj Mohd Farid Shah Mohd Basir [email protected] Pn Nadiah Tan Abdullah [email protected] Dato’ Sri Tan Thian Poh [email protected] Dato’ Dr. Lim Weng Khuan [email protected] Dato’ Ahmad Nadzarudin Abdul Razak [email protected] Assoc. Prof. Dr. Michael Chiam Tow Hui [email protected] En Mohd Syukri Ahmad Sudari [email protected] En Alan Khoo Choom Kwong [email protected] Datuk Nora Abd. Manaf [email protected] Pn Anne Kung Soo Ching [email protected] Tn Hj Mohamad Audong [email protected] Tan Sri Dato’ Dr. Mohd Noor Ismail [email protected] (Tan Sri Dato’ Dr. Mohd Noor Ismail passed away on 13.07.2020) Pn Peggy Chew Being Being [email protected] Dato’ Raiha Azni Abd Rahman [email protected] Datuk Wira SM Faisal Tan Sri SM Nasimuddin, D.C.S.M.D.S.D.K. [email protected]

ANNUAL REPORT 2019 113 MEF SECRETARIAT

Executive Director Datuk Hj Shamsuddin Bardan [email protected]

General Manager – Industrial Relations En M. Venugopal [email protected]

Senior Consultants – Industrial Relations En Goh Seng Wing [email protected] Lt Col (R) Hj Mohd Akhir Hj Hamzah [email protected] En Abdullah Abdul Karim [email protected] Tn Hj Zaikon Jaafar [email protected] Pn Saraswathi Ravindran [email protected] En V. Nantha Kumar [email protected] En Tan Kee Tett [email protected] Tuan Mansor Ibrahim [email protected] Pn Prema Kesavan [email protected]

Consultants – Industrial Relations Tn Hj Mohd Ismail Wahidin [email protected] En Najmuddin Hakim [email protected] En George Young Si-Ricord Junior [email protected]

Associate Consultant – Industrial Relations Pn Zazurainny Zainuddin [email protected]

Senior Manager – Research & Information Cik Lee Yoke Wan [email protected]

Economist Pn Azizah Talib [email protected]

Senior Research Analysts - Survey & Information Pn Maslifa Masmuda [email protected] Pn Goh Lea Koon [email protected]

114 ANNUAL REPORT 2019 Research Analyst - Survey & Information Cik Musfirah Liyana Mustapa Kamar [email protected]

Executive Assistant - Research & Information Pn Zawiyah Mohd Yusop [email protected]

Senior Manager – IT En Wong Chee Mun [email protected]

IT Executive En Mohd Remie Mahmood [email protected]

Senior Manager - Membership & Public Relations Pn Haslena Ismail [email protected]

Membership & Public Relations Executives Cik Wong Ping Sing [email protected] Pn Nurul Afiqah Nordin [email protected]

Marketing Executive Cik Norkhalidah Mohd Nordin [email protected]

Consultant - Occupational Safety, Health & Environment Tn Hj Anis Fahmy Pauzi [email protected]

Senior Manager – Employer Affairs En Mohd Zakri Baharudin [email protected]

Executive Assistant Pn Jeannie Tan [email protected]

Secretary to Executive Director Pn Ruhaiza Mohamad Sapian [email protected]

Manager – Administration & Finance Cik Yap Chui Choo [email protected]

Finance & Admin Executives Pn Nur Iffah Auni Mohammed Satari [email protected] Pn Noor Hidayah Zulkafli [email protected] Cik Natasya Amira Mohd Shawal [email protected]

ANNUAL REPORT 2019 115 Senior Clerks Cik Samsiah Ariffin [email protected] Pn Sabiyah Zafarullah Khan [email protected] Pn Manjit Kaur Bhwa Singh [email protected] Pn Norizah Amat [email protected] Pn Nurul Ain Salhan [email protected] Cik Rohana Ismail [email protected] Cik Eu Yeok Hoon [email protected] Pn Rozameza Nawawi [email protected]

Clerks En Mat Sahizol Raduan Nordin [email protected] Pn Alyaa Izyan Mohd Ali [email protected] Pn Maryama Mansur (up to 3 October 2019) [email protected] Cik Mardiah Mansur (w.e.f 2 October 2019) [email protected]

Front Office Assistants Cik Noor Ameleena Shamimie Md So’od [email protected] Pn Vishalani Santhanam [email protected]

Office Assistants En Abdul Halim Abdul Adris [email protected] Pn Kamsiah Bustaman [email protected]

Cleaner Pn Satumi Ridwan [email protected]

116 ANNUAL REPORT 2019 MEF ACADEMY

Board of Directors Tan Sri Azman Shah Dato’ Seri Haron [email protected] Datuk Hj Shamsuddin Bardan [email protected] Dr Michael Chiam Tow Hui [email protected] Tn Hj Abdul Wahab Abu Bakar [email protected] En A. Ramadass [email protected] Tn Hj Mohammed Amin Aziz [email protected] Dato’ Dr. Syed Hussain Syed Husman, J. P. [email protected]; [email protected] En Christopher S. Raj, KMN [email protected]

Senior Consultant – Training Pn Thilagarani Thilaganathan [email protected]

Consultant – Training En Sri Vahlsan Krishnan Nair [email protected]

Associate Consultant – Training En Lim Chan How [email protected]

Finance & Admin Executive Cik Kenix Kong Sook Fong [email protected]

Training Executive Pn Aspalela Ayob [email protected]

Senior Clerk Pn Roszanariah Saadon [email protected]

Clerk Pn Nazlina Nasarudin Aziz [email protected]

ANNUAL REPORT 2019 117 HEADQUARTERS & REGIONAL OFFICES ADDRESSES

HEADQUARTERS 3A06 – 3A07, Block A, Pusat Dagangan Phileo Damansara II No. 15, Jalan 16/11, Seksyen 16 46350 Petaling Jaya, Selangor Darul Ehsan Telephone: 03 – 7955 7778 Fax: 03 – 7955 6808 / 7955 9008 Email: [email protected] Homepage: www.mef.org.my

NORTHERN REGION OFFICE PERAK OFFICE 379–D, Jalan Hajjah Rehmah A–1–3, 1st Floor, Wisma MFCB 11600 Jelutong No. 1, Persiaran Greentown 2 Penang Greentown Business Centre 30450 Ipoh, Perak Darul Ridzuan Telephone : 04 – 659 9236 / 659 6909 Fax : 04 – 659 9873 Telephone : 05 – 255 7778 / 255 9778 Email : [email protected] Fax : 05 – 255 2778 Email : [email protected]

SOUTHERN REGION OFFICE SARAWAK OFFICE No. 17–01 & 17–02, Jalan Cantik 6 Lot No. 95, Jalan Nyiur, Tabuan Road Taman Pelangi Indah 93200 Kuching 81800 Ulu Tiram Sarawak Johor Darul Takzim Telephone : 082 – 247 027 Telephone : 07 – 862 4776 Fax : 082 – 247 028 Fax : 07 – 862 4773 Email : [email protected] Email : [email protected]

EAST COAST REGION OFFICE SABAH OFFICE B–8 & B–10, First Floor Lot No. 1, Block A, 3rd Floor Jalan Haji Ahmad 3 Damai Point, Luyang Sri Pahang Business Centre 88300 Kota Kinabalu 25300 Kuantan Sabah Pahang Darul Makmur Tel : 088 – 210 579 Telephone : 09 – 512 4373 Fax : 088 – 204 979 Fax : 09 – 512 4251 Email : [email protected] Email : [email protected]

118 ANNUAL REPORT 2019 MALAYSIAN EMPLOYERS FEDERATION PERSEKUTUAN MAJIKAN-MAJIKAN MALAYSIA

HEADQUARTERS

3A06 – 3A07, Block A, Pusat Dagangan Phileo Damansara II No. 15, Jalan 16/11, Seksyen 16, 46350 Petaling Jaya, Selangor Darul Ehsan Telephone: 03 – 7955 7778 Fax: 03 – 7955 6808 / 7955 9008 Email: [email protected] Homepage: www.mef.org.my

ANNUAL REPORT 2019 125