SMEs not ready for amended Act

SMEs not ready for amended Act

PETALING JAYA: Following the tightening of occupation health and safety regulations, SME groups want more time to train their safety and health coordinators, other than appealing to the government to provide sufficient trainers and make these training claimable under the Human Resources Development Corporation.

Commenting on the recent amendments to the Occupational Safety and Health Act (Osha), Small and Medium Enterprises Association of Malaysia (Samenta) chairman Datuk William Ng said while employers recognise the importance of workplace safety and support the increased compliance requirement, he added that many SMEs are not quite ready to comply, other than the generally low level of awareness on Osha requirements.

“It is complex and requires training and proper implementation, and many SMEs are either unaware or not ready for the amended Act.

“For example, under the amendment and combined with the (Human Resources) ministry’s call for employers to allow flexible working hours, employers will be responsible for safety and health issues occurring in the employees’ homes when they choose to work from home.

“So it is no longer as clear-cut as ensuring the factory or office is safe. If an employee slips and falls while working at home, an employer can go to jail under this amended Act,” he said in an interview yesterday.

Ng also said only a limited number of trainers were approved by the Occupational Safety and Health Department (DOSH) to conduct courses and certify such coordinators.

“How is it possible then to meet the tight deadline? Given that there is no legal precedence on such matters, it is crucial to not only postpone the implementation, but businesses must be given clear guidelines as to what they must do, and be educated on situations where they will likely encounter risks of non-compliance.

“Otherwise, SMEs will incur steep costs in implementation and possibly penalties,” he said.

Human Resources Minister Steven Sim said on Monday that the Occupational Safety and Health (OSH) Act (Amendment) 2022 will come into effect on June 1, increasing the safety and health level at workplaces nationwide.

The amended Act was passed by Parliament on March 16, 2022.

Sim said the law requires employers to analyse risks at the workplace, and companies with five or more employees must appoint a safety and health coordinator.

Associated Chinese Chambers of Commerce and Industry of Malaysia’s SMEs committee chairman Datuk Koong Lin Loong said SMEs can either train and appoint their staff or outsource such a position, which will incur more costs.

“The government should assist or give subsidies, help the SMEs comply as it is part of our recognition of the International Labour Organisation practices that Malaysia has ratified.

“We should try to avoid escalating the cost of doing business,” he said.

Koong also said the amended Act is good in helping SMEs emphasise work safety and practices.

“However, the relevant (regulatory) departments should avoid duplication or overlapping tasks.

“This is because they are from two different ministries but have the same objectives,” he said, referring to DOSH and the Fire and Rescue Department.

Calling the June 1 implementation “too soon”, Koong said the Human Resources Ministry needs to do more.

“SMEs won’t make it in time to appoint a safety and health coordinator, and they will need hand- holding. They should give clear briefings and engage all trade groups,” he said, adding that employers know little about the criteria of a safety and health coordinator.

SME Association Malaysia secretary-general Chin Chee Seong suggested that the government provide free OSH training to SMEs.

“It can be a three-day HRD Corp claimable training that even those with SPM qualification can attend. The ministry should still allow a few months if companies cannot appoint anyone,” he said.

Elsewhere, Chin said employers have been tackling heat stress among workers caused by recent heatwaves and unpredictable weather.

“The approach varies across industries. In manufacturing and construction, companies provide shaded break areas and access to water.Office-based industries focus on maintaining comfortable indoor conditions with air conditioning and flexible work schedules. These initiatives prioritise worker well-being and productivity,” he said.