Federation says raising penalties to RM500,000 'does not make sense'
The Malaysian Employers Federation (MEF) is suggesting a "tiered penalty system" for workplace safety violations amid concerns that the upcoming penalty hike would be too heavy for smaller businesses.
Penalties for workplace violations will be hiked to RM500,000 starting June under amendments in Malaysia's Occupational Safety and Health (Amendment) Act 2022.
But MEF president Datuk Dr Syed Hussain Syed Husman said raising the penalty to such heights "does not make sense."
"A tiered penalty system based on the size and operations of the business could be a more viable option," Syed Hussain told the New Straits Times.
He raised the suggestion amid concerns that micro, small, and medium enterprises (MSMEs) would "not have the financial resources to have a comprehensive OSH programme" at work.
According to the MEF president, the maximum penalty should only be a last resort for uncooperative employers who do not implement occupational safety and health procedures and safeguards.
Malaysia's amendments to its Occupational Safety and Health (Amendment) Act 2022 expands the coverage of all workplace health and safety obligations to all employers.
Under the amended law, employers are also mandated to appoint a health and safety coordinator in the workplace. Failure to do so will mean a fine of not more than RM50,000, or imprisonment not exceeding six months, or both.
"Companies with five or more employees must appoint a coordinator… the enforcement of this act is highly anticipated by the occupational health and safety practitioner sector," Human Resources Minister Steven Sim Chee Keong previously said.
