Building Industry Presidents’ Council reinforces objection to HRD Corp’s mandatory levy collection

• The Building Industry Presidents’ Council had previously written to the Ministry of Human Resources, the Ministry of Works and the Ministry of Housing and Local Government in 2021, objecting to the ruling on the expansion of the Human Resources Development Fund (PSMB) Act 2001 (Act 612), which included the construction industry with effect from March 1, 2021.

KUALA LUMPUR (July 19): The Building Industry Presidents’ Council (BIPC) chaired by president Jeffrey Chiang Choong Luin has reinforced its objection towards the mandatory Human Resource Development Corp’s (HRD Corp) mandatory levy collection for the building industry, following the recent allegations of fund misappropriations.

This was said in a press statement that was issued on Friday and endorsed by the Association of Consulting Engineers Malaysia; The Institution of Engineers, Malaysia; Malaysian Institute of Planners; Master Builders Association Malaysia; Pertubuhan Akitek Malaysia; Real Estate and Housing Developers Association Malaysia; and the Royal Institution of Surveyors Malaysia.

The BIPC had previously written to the Ministry of Human Resources, the Ministry of Works and the Ministry of Housing and Local Government in 2021, objecting to the ruling on the expansion of the Human Resources Development Fund (PSMB) Act 2001 (Act 612), which included the construction industry with effect from March 1, 2021.

“Our stance on the matter remains the same given that the building and construction industry has always been under the governance of CIDB [Construction Industry Development Board]. CIDB has been undertaking the role of training and development of construction personnel and workers through levy collection from contractors in line with the amended CIDB Act 520,” the statement said.

It was further stressed that architects, engineers, quantity surveyors, town planners and land surveyors are regulated under their respective professional boards, which require these professionals and their firms to pay annual renewal fees and are subject to compulsory learning and training under the Continuing Professional Development programme as approved by the respective boards.

“Therefore, it would not be necessary for the construction companies and the construction professionals’ firms to be registered and be charged with the HRD Corp levy for human resource development and training. The cost of doing business has also increased with the rising fuel costs and subsidy rationalisation in the sector coupled with this mandatory HRD Corp levy collection for the building industry.”

The statement also called on the government to take the building industry’s challenges into consideration. “We ask for the government’s intervention to facilitate and assist the industry stakeholders and not to further burden the industry with the imposition of additional costs as such a substantial levy contribution to HRD Corp, which is not in the best interest of the building and construction industry.”

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