Only a small number of companies have failed to make statutory payments to the Social Security Organisation (Perkeso) post the Covid-19 pandemic, according to the Malaysian Aviation Commission (Mavcom).
Following the signing of a Memorandum of Understanding (MoU) between Mavcom and Perkeso on Monday (Dec 16), Mavcom executive chairman Datuk Seri Saripuddin Kasim emphasised that compliance with Perkeso's statutory requirements is a key licensing condition for aviation service providers.
Perkeso group chief executive officer Datuk Seri Mohammed Azman Aziz Mohammed revealed that the organisation had safeguarded over 800 aviation industry employees from job losses by disbursing more than RM13mil under the Wage Subsidy Programme.
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Following the signing of a Memorandum of Understanding (MoU) between Mavcom and Perkeso on Monday (Dec 16), Mavcom executive chairman Datuk Seri Saripuddin Kasim emphasised that compliance with Perkeso's statutory requirements is a key licensing condition for aviation service providers.
Perkeso group chief executive officer Datuk Seri Mohammed Azman Aziz Mohammed revealed that the organisation had safeguarded over 800 aviation industry employees from job losses by disbursing more than RM13mil under the Wage Subsidy Programme.
WATCH MORE: https://thestartv.com/c/news
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NewsTranscript
00:02This is a cooperation between MECOM and Pekisu, which will benefit both sides.
00:16On our side, as regulators, we want to ensure the welfare of employees of the machine industry are well protected.
00:27At the same time, we want to ensure the employer of the industry complies with the relevant Pekisu Act that they have to contribute to Pekisu.
00:42This year, we learned a lot from COVID-19.
00:47We see the issue has become important after COVID-19.
01:01From now on, we are strengthening our role in ensuring compliance for the employer.
01:11We have to cooperate with Pekisu.
01:16We are lucky that Pekisu has come forward to work together with us.
01:23This is the first step.
01:25We are looking forward to working closely with EPF.
01:31It is not only to ensure the compliance of the employer, but also to protect the interests of the employees.
01:39So that the government can continue to contribute to Pekisu and EPF.
01:48The reason why we look forward to this MOU is mainly on two areas of concern.
01:54One is the compliance of the aviation industry.
01:59We want to ensure that the employees are registered and registered under the Social Security Act of 1969 and the Employment Insurance System Act of 2017.
02:14By having this collaboration, we will have an exchange of data.
02:19We want to ensure that all employees under the aviation industry are registered and registered.
02:28This is to ensure the welfare and social protection of this group of workers.
02:35Number two, we also look forward to better collaboration in terms of job placement and also opening for this aviation industry.
02:45As you know that during COVID, quite a number of aviation industries were badly affected.
02:55In terms of all from ground staff up to the technical crew which was affected badly.
03:06So with this collaboration, we look forward to assisting the aviation industries by having specific job fairs, job career programs.
03:19By getting collaboration with MAFCOM and the industries, we look forward to assist job seekers within these industries to be placed.
03:30I was just wondering from your cross-check data, is it rampant this misconduct?
03:38And what are you planning to do with those who were affected in 2020 to 2022?
03:44Because there will be a lot of backlog too.
03:46Okay, talking about the compliance.
03:53Actually, all the licensees are subjected to the license conditions that we impose.
04:02Because one of the conditions is that they must comply to contribute to the statutory contribution to EPAF and so on.
04:14We found out that after the pandemic especially, we found that some of them failed.
04:20Is it a lot or is it minority?
04:23I don't have the number but there are some.
04:26Some of the industry players failed.
04:29Not all, but failed to contribute to the procurator for example.
04:38Some are having problems but sometimes we want to know whether they have an approach.
04:46How to solve the problem?
04:53I know some have counter-punishal difficulties but they have to approach the respective statutory bodies.
05:04If there are some sort of agreements then we are okay with it.
05:09But we just want to ensure that all the employees are well taken care of and they are not run away from their responsibilities.
05:20I would say it is not critical. It is not rampant.
05:24It is not, I mean, in terms of percentage, the big numbers, the percentage of non-compliance is very, very high.
05:37I would say that it is just a small number of these small companies within aviation, maybe they are not aware.
05:45But as mentioned by Dato Sri, actually during COVID, it happened because maybe they want to reduce their costs.
05:54But post-COVID, maybe either they continue or they oversee.
06:02Maybe they don't put that as priority to register and also to contribute.
06:11That is the reason why it continues.
06:13But it is not, I would say that it is not rampant. It is just small numbers.
06:18Let me put it this way.
06:21Before a license is issued or renewed to any particular company, what I call the contribution to the,
06:33the statutory contribution is one of the areas that we look into.
06:37There are other aspects. If we work for the financial prospect, financial health of the companies.
06:44So this is one of the aspects that we look into.
06:48Not because they did not contribute to Perkeso, then we did not renew the license. It is not so.