Kuala Lumpur, December 11, 2025 — The Federation of Malaysian Manufacturing (FMM) hereby expresses its sincere appreciation to the Government, and in particular to the Ministry of Human Resources and Minister YB Tuan Steven Sim Chee Keong, for recognising the concerns of the industry and approving the removal of the proposed financial penalty clause from the Employment Insurance System (EIS) Amendment Bill 2025 following submissions by industry stakeholders.
We are encouraged by the Government’s readiness to listen to the legitimate concerns raised by employers, concerns that FMM first detailed in our letter to the Minister on November 27, 2025, and our subsequent press statements. Specifically, FMM had highlighted that the originally proposed Section 45F(4), which would have imposed a fine of up to RM10,000 for failure to notify job vacancies or new positions, represented a substantial burden, particularly for employers with high-volume or frequent hiring needs. The penalty-based approach also diverged from international practice, where employment-services notifications are typically managed through administrative levers rather than punitive fines.
By removing the penalty clause, the Government has demonstrated a constructive, cooperative stance toward employers, aligning with FMM’s view that compliance should be rooted in partnership rather than punitive enforcement. This reversal effectively transforms a mandatory job vacancy reporting obligation into a practical mechanism that supports labour-market transparency, without jeopardising business viability.
FMM also notes the Government’s broader intent behind the Amendment Bill which is to augment the social protection and active-labour-market provisions under the Social Security Organisation (PERKESO). These include enhanced re-employment support, training subsidies, improved unemployment and mobility allowances, all of which are positive steps for a resilient workforce and a dynamic labour market.
As the amended EIS framework moves toward implementation, FMM welcomes the removal of financial penalties and supports a shift toward non-punitive, administratively managed compliance consistent with international norms and the practical realities of the Malaysian business environment. FMM appreciates the Government and the Ministry of Human Resources for listening to industry concerns and responding with a balanced, pragmatic decision that reflects a collaborative approach to policymaking.
