Bernama file photo
KUCHING: Sarawak Oil Palm Plantation Owners Association (Soppoa) is appealing for exemption to the recently amended Human Resources Development Fund (HRDF) Act which orders, among others, the plantation sector to contribute 1 per cent towards the HRD levy.
This was following the announcement made by Human Resources Minister Datuk Seri M Saravanan on Feb 26, of the amendment to the Expansion of the Pembangunan Sumber Manusia Berhad Act 2001 (Act 612) Pembangunan Sumber Manusia Berhad (Amendment of First schedule) Order 2021 to all industries including the plantation sector.
“Foremost, the plantation sector conducts the bulk of its training for foreign workers with proper moduled in-house training courses like harvesting, field upkeep and others. These trainings are focused based on each company’s needs, and the plantation sector has been operating effectively using such methodology.
“It is therefore most inappropriate for the government to impose the levy on the plantation sector for training of foreign workers which is viewed as further taxing the plantation sector.
“As such, Soppoa opposes the amendment to include the plantation sector and appeals for exemption of the plantation sector from the amendment,” a spokesperson
said.
In opposing the inclusion of the plantation sector for the contribution of 1 per cent levy, the association is also appealing to the Sarawak government to assist the plantation sector to support their stance.
It said the plantation sector was one of the most heavily taxed sectors (majority of which are federal taxes) and any further tax would only ruin the future development of the palm oil industry in Sarawak, which is a key component for the development of the state and its people.
“We appeal to Datuk Seri M Saravanan to consider exempting the amended Act for the plantation sector as the bulk of their employees are foreign workers, which only require basic moduled in house training for on-going job-related activities.
“The plantation sector is still facing acute shortage of workers due to the pandemic and still experiencing heavy loss of revenue due to shortage of harvesters.
“Plantations should be allowed to utilise whatever monetary resource left to normalise operations to continue to bring back the much-needed revenues to the country through normalised production and export of quality palm oil products,” the spokesperson added.
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