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TI-M Calls Wider Consultation on Establishment of Safety Net

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Transparency International-Malaysia (TI-M) Calls Wider Consultation on Establishment of Safety Net

Transparency International Malaysia (TIM) shares the concern and disappointment, as expressed by the Federation of Malaysian Manufacturers in its press statement that not all stakeholders had been called in for consultation on the proposal to establish a safety net for retrenched workers.


The proposed safety net has wide implications on all economic sectors, as well as on all employers and employees, both of whom are expected to jointly contribute to the fund like the SOCSO and EPF. All stakeholders should be provided with information and an avenue for discussion to express their views and concerns.


Discussion on such a significant social instrument should not be restricted to only a select group. The Government should in fact consider holding a public referendum or consultation to obtain as many views and feedback as possible before making a decision on setting up such a fund.


A public referendum or consultation would ensure greater transparency and fairness to all stakeholders to obtain information, clarification and to register their views.


A public referendum or consultation would also ensure wider representation of views. In this respect, the Government should always ensure that all platforms for discussion on issues of importance affecting employers and employees should be well represented by all key economic sectors providing employment in the country and not restricting to only the National Labour Advisory Council.


The lack of wider consultation and transparency on such an important policy instrument would not be able to secure adequate support or ‘buy-in’ from all stakeholders, leading to a loss in confidence amongst investors. This could create adverse implications on the economy and problems with implementation.


Issued by
Tan Sri (Dr) Ramon V. Navaratnam
Transparency International – Malaysia