ABOUT THE FUND

This fund is introduced to encourage rubber product companies to hire more Malaysian workers.

 

With the implementation of the fund, it is hoped that there will be an increase in participation of Malaysian workers in the downstream sector of the rubber industry.


THE INCENTIVE

Eligible companies in the rubber product industry who hire Malaysian workers in accordance with conditions stipulated under "Conditions for Workers Hired" may claim the incentive based on the formula below:


RM3,600 for each Malaysian worker hired

The maximum amount of incentive which may be claimed by any one company shall not exceed RM720,000. In other words, each eligible company is allowed to claim the incentive for up to 200 workers only.

Eligibility Criteria

Companies who wish to apply for the incentive shall meet the following criteria:

  1. Incorporated under the Companies Act.
  2. Possess a valid manufacturing license from the Ministry of International Trade and Industries (MITI) or business license from the local authority or any other equivalent license issued by a regulatory body.
  3. Produce cessable rubber products.
  4. Registered with MRC.

Conditions
for Workers Hired

To qualify for the incentive, the workers hired by the companies shall meet the following conditions:

  1. They are Malaysian citizens.
  2. They are hired between 1 August 2020 and 31 December 2021.
  3. They are permanent workers or contract workers hired for a period of not less than two years.
  4. They are general workers or workers who occupy positions at non-executive or non-professional level.
  5. The basic salary of the workers shall not be less than RM1,500 a month.
  6. The workers are hired in accordance with the Employment Act 1955 and all relevant labour laws and regulations of Malaysia.

INFORMATION AND
DOCUMENTS REQUIRED
FOR APPLICATION

Companies shall provide the following information and copies of supporting documents when applying for the incentive:

  1. Copy of Certificate of Incorporation under Companies Act.
  2. Copy of manufacturing license from Ministry of International Trade and Industry (MITI) or any equivalent manufacturing or operating license issued by a regulatory body.
  3. Copy of workers' MyKad (front only which indicates worker's name and identity card number).
  4. Copy of Company's offer letter to workers.
  5. In the case of contract workers - copy of employment contract (only pages which indicate the name of workers and the duration of employment, i.e. how many years, need to be submitted).
  6. Certified true copy of workers' salary slip which provide details on basic salary and allowances, if any.

APPLICATION

Applications to claim for the incentive can be made from 1st February 2021 onwards ie. after the workers hired have met the conditions of serving the company for a minimum period of six (6) months.

 

The eligible companies shall apply for the incentive in two phases as follows:


  1. The first claim for the incentive shall be submitted six months after the workers are hired. Only workers who serve a company for a minimum period of six (6) months or 181 days consecutively, whichever is longer, may be included in the applications for claim.
  2. The second claim for the incentive shall be submitted twelve months after the workers are hired. Only workers who serve a company for a minimum period of one (1) year or 365 days consecutively, whichever is longer, may be included in the applications for claim.



EXAMPLE

A company hired three workers A, B and C on 1 September 2020 and the status of the workers a year later is as follows:


  • Worker A served the company for four months and resigned in January 2021.
  • Worker B served the company for seven months and resigned in April 2021.
  • Worker C continued to work for the company after twelve months.


The applications of the company for claims for the three workers are as follows:



  First claim
March 2021
First claim
September 2021
Total Claim
Worker A Not qualified to be included for claim    
Worker B May be included for claim of RM1,800 Not qualified to be included for claim RM1,800
Worker C May be included for claim of RM1,800 May be included for claim of RM1,800 RM3,600

 

Applications for the incentive shall include the following information:


  1. Copy of Certificate of Incorporation under Companies Act - Form 9 (and/ or Form 13 and Form 20, where applicable).
  2. Copy of manufacturing license from Ministry of International Trade and Industry (MITI) or any equivalent manufacturing or operating license issued by a regulatory body.
  3. Details of workers hired (name, position in the company).
  4. Workers' certified true copy salary slips.
  5. Supporting documents of workers which include Mykad; employment offer letter; and in the case of contract workers, their contract with the employer.


Companies are required to submit a Statutory Declaration to declare that all information furnished in the application is true.

 

MRC may request companies applying for the incentive to furnish additional information it deems fit.

 

The last date to apply for the incentive is 31 March 2023.

 

Contact Us

ADDRESS

Secretariat
Fund to Encourage Hiring of Malaysian Workers
Malaysian Rubber Council (MRC)
Unit No. 36-02, Level 36, Q Sentral
2A Jalan Stesen Sentral 2, Kl Sentral
50470 Kuala Lumpur.

Contact Person: Ms. Nur Amirah Abdul Rahman

Phone No: +6(03) 2782 2100

E-mail: fhlw@myrubbercouncil.com



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