By DayakDaily Team
KUCHING, July 5: SHEDA Institute, the research and training arm for Sarawak Housing and Real Estate Developers’ Association in Malaysia (SHEDA), has called for a review of the implementation mechanism of the proposed amendments to the Employment Insurance System (Amendment) Bill 2025, saying the new reporting requirements would add unnecessary compliance costs and administrative burdens to the property development and construction industry.
In a press release today, it said it acknowledged the federal government’s efforts to strengthen Malaysia’s labour market information system and supported initiatives aimed at improving workforce planning and employment opportunities.
“However, the implementation mechanism warrants further review to ensure that it achieves its intended objectives without placing unnecessary administrative burdens on employers, particularly those in the property development and construction industry,” it said.
The amendments, passed in the Dewan Rakyat on June 30, require employers to notify the Social Security Organisation (SOCSO) of job vacancies before recruitment and again within seven days after the position has been filled.
Employers who fail to comply would face progressive penalties of up to RM1,000 for a first offence, RM3,000 for a second offence and RM5,000 for subsequent offences.
SHEDA Institute said the property development and construction industry operates in a project-driven environment where recruitment needs are often urgent and time-sensitive.
“As developments progress through different stages, developers, contractors and consultants may need to recruit personnel at short notice to meet project schedules and contractual obligations.
“Employers also commonly advertise vacancies through established recruitment platforms and professional networks. The proposed reporting requirement therefore introduces an additional administrative process without necessarily improving the effectiveness or efficiency of recruitment,” it explained.
The institute also expressed concern that mandatory pre-recruitment reporting could inadvertently delay hiring and disrupt decision-making when vacancies need to be filled quickly to avoid interruptions to construction progress.
It added that while each notification may appear simple, the cumulative administrative effort could become significant for companies managing multiple projects with constantly changing manpower requirements.
SHEDA Institute further pointed out that the government already receives extensive employment information through existing statutory reporting mechanisms, including monthly submissions to the Employees Provident Fund (EPF), SOCSO and Monthly Tax Deduction (PCB).
It suggested that greater integration and utilisation of these existing databases could help the government achieve its labour market objectives while minimising additional reporting obligations on employers.
Instead of relying mainly on penalties, SHEDA Institute proposed that the government encourage voluntary compliance through incentives such as tax incentives or other forms of recognition for employers who consistently participate in vacancy reporting.
According to the institute, such measures would encourage wider participation, improve the quality of labour market data and foster a more collaborative partnership between the government and the business community.
“At present, the proposed framework focuses largely on sanctions and penalties for non-compliance, without providing corresponding benefits to employers who consistently fulfil the reporting requirements,” it said. — DayakDaily
