ACCCIM did not agree to MEC

PETALING JAYA: The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) has denied reports saying that it agreed to the implementation of the Mandatory Employer Commitment (MEC).
In a statement today, ACCCIM president Datuk Ter Leong Yap said that it never agreed to the new measure, contrary to reports of Minister in the Prime Minister's Department Datuk Paul Low informing the Cabinet otherwise.
The implementation of the MEC, which was announced on Dec 31, 2016 and took effect on Jan 1, 2017, requires employers to bear the full cost of foreign worker levies.
Ter said Low's statement is highly misleading and categorically objects the statement.
He said ACCCIM and other business organisations have been clear about their stance against the government's move to impose "strict liability" and urged the government to review the policy.
According to Ter, the briefing session held by the Prime Minister's Department to explain the "strict liability" concept on Jan 26, 2016 lacked details, with most of the participants comprising officials from government agencies and several representatives from various associations.
Since then, ACCCIM and several business organisations have submitted a joint statement and a memorandum to Low, expressing their objection. In response, Low agreed to a meeting between the business community and the Home Affairs Ministry.
"However, this meeting never materialised. Therefore, when the government announced on Dec 31, 2016 that the MEC will be implemented effective Jan 1, 2017, the business community was taken by surprise.
"Without meaningful prior consultation, details or grace period, employers are ill prepared not only to pay the foreign worker levy but are also to be held fully accountable for other aspects of foreign workers," said Ter.
The business community, which has seen a rise in the cost of doing business due to the minimum wage policy, has been vocal about the impact of EMC.