Socso also denied the Malaysian Employers’ Federation’s (MEF) claim that its views were not taken into consideration.
In an interview with FMT, Socso EIS chief Mohd Sahar Darusman said 42 engagements were held with employer groups and another 41 with employee groups in the formulation of the bill.
“So the allegations that there were insufficient engagements are entirely baseless,” he said.
MEF executive director Shamsuddin Bardan had also complained that the EIS bill, which was passed in Parliament last week, gave the human resources minister the authority to amend the combined 0.4% contribution rate to up to 1.5%.
Sahar refuted this and said that any proposed increase in contribution rates for the EIS would need the approval from Socso’s board of directors.
Socso’s board is made up of key representatives from employers and employees, as well as a representative from the finance ministry.
Sahar said that even after Socso’s board had passed any proposed increase of contribution rates, it would still need the cabinet’s approval.
He also spoke on the strong governance and high level of accountability of the EIS.
“Socso is also responsible to submit our annual report, which will now cover the EIS, to the cabinet and Parliament every year.”
He also dismissed claims that the EIS would be duplicating the roles of some government agencies in relation to job matching, job search and training.
“With nine years of existing experience of employment services through the Return to Work Programme, Socso operates on an entirely different model of employment services which is person-centred and personalised.
“This is not practised by other private or public agencies at present.”
Sahar said under the EIS, there would be a designated employment service officer for each retrenched worker to assist with job search, job matching and job placement as well as to monitor all activities until the worker had successfully found a new job.
“We will work with other public and private agencies, not compete with them. Some agencies like Jobs Malaysia assist school leavers, unemployed graduates, housewives and so on. The EIS caters only to those who contribute to the fund to get them re-employed.”
Sahar said Socso hoped that all parties would no longer make false allegations on the EIS, adding that all input had been taken into consideration.
“Policies and strategies for the EIS aren’t carved in stone and will evolve according to economic and labour market conditions.
“The EIS committee, which is made up of employers, employees and the government, will make recommendations and implement the EIS in the best interests of all parties.”