MEF Supports Better Vacancy Data Under EIS, Urges Practical Implementation

KUALA LUMPUR, Dec 11 (Bernama) -- The government’s move to strengthen vacancy reporting under Section 45F of the Employment Insurance System Act (EIS) is aligned with established international practices, but practical implementation is a must, said the Malaysian Employers Federation (MEF).

It said that, supporting Malaysia’s long-term labour-market development, better vacancy data is socially beneficial and serves employers’ long-term business interests.

“When the government has clearer insight into hiring trends, skill shortages and sectoral demand, education, technical and vocational education and training, and upskilling programmes can be more effectively targeted.

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“Over time, this leads to a stronger talent pipeline, reduced mismatch, and improved productivity, which directly enhances national and business competitiveness,” MEF said in a statement.

However, the association stressed that implementation must be proportionate and practical, as smaller companies, particularly micro, small, and medium enterprises without dedicated human resources personnel, should not face undue administrative burdens.

“The EIS Act empowers the minister to tailor regulations and exempt certain categories of employers, and MEF strongly urges that this flexibility be exercised to ensure that compliance requirements reflect company size and operational capacity rather than adopting a uniform, one-size-fits-all model,” it said.

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MEF president Datuk Syed Hussain Syed Husman said that imposing a blanket RM10,000 penalty for administrative non-compliance is disproportionate.

“Employers regularly manage fluctuating workforce needs, restructuring exercises and urgent operational demands.

“A rigid seven-day reporting requirement, coupled with such a hefty fine, does not reflect the realities faced by businesses,” he said. 

Syed Hussain added that cumulative penalties, especially when multiple vacancies arise over weeks or months, would create significant compliance risks and impose unnecessary financial strain on companies already managing rising costs and economic uncertainties. 

-- BERNAMA