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Chapter 7 Business Regulation and Support System
Chapter 7 Business Regulation and Support System
Chapter 7 Business Regulation and Support System
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BUSINESS REGULATION & SUPPORT
SYSTEM
CLO2:
Demonstrate the entrepreneurial mind in identifying
business opportunities.
7.0 Business Regulation & Support System
Learning Outcome
At the end of the session, students should be able
to:
Manufacturing Licence
Financing is needed by
entrepreneur for sustainability and
development of business.
Purposes of Financing
1. Soft loan
2. Grants
3. Equity financing
4. Venture capital
5. Guarantee scheme
6. Tax incentives
Who Provide the Financial
Assistance?
Two main provider for financial assistance are
ministry and agencies.
Ministry
1. Ministry of Entrepreneur and Co-operative
Development (MECD)
2. Ministry of Science, Technology and
Innovation (MOSTI)
Agencies
26 agencies
Ministry of Entrepreneur and Co-
operative Development (MECD)
Eligibility criteria
1. Young Bumiputera Graduate
- Less than 30 years old with at least diploma qualification from
institution recognised by the government.;
- Able to source own capital amounting RM500 for each project
2. Businesses
- Wholly-owned and managed by Bumiputera ;
- New business or business at the stage of expansion
Multimedia Development Corporation
MSC Malaysia Research and Development Grant Scheme
(MGS)
Objective
To provide reimbursable R&D grant to assist Multimedia
Super Corridor (MSC) Malaysia-Status Companies to develop
innovative multimedia technologies and applications.
Eligibility criteria
Possess a valid MSC Malaysia-status certification
Malaysian shareholding of at least 51%
Past or current recipients of any Government R&D grant are
NOT eligible under the scheme
Purpose of financing
To provide financing for research and development projects
for the development of new products and services across the
multimedia value chain and Flagship Applications
Employment Policies &
Legislations
EMPLOYMENT POLICIES
& LEGISLATION
1. EMPLOYMENT ACT 1955
2. EMPLOYER PROVIDENT FUND
3. SOCIAL SECURITY ORGANIZATION
4. OCCUPATIONAL SAFETY AND HEALTH
1. EMPLOYMENT ACT 1955
• Stipulates the minimum conditions of employment
such as Besides, the Act is to provide minimum
standards on working hours and overtime, weekly rest
day, public holidays, annual and sick leaves, maternity
benefits, termination and lay off benefits etc
• Applies to all employees in Peninsular Malaysia and
the Federal Territory of Labuan whose monthly wages
do not exceed RM1,500 and all manual workers
irrespective of their wages.
• Employees who earn between RM1,500 to RM5,000 a
month can still seek redress from the Labor
Department with regard to wages and any other
payments in cash as stipulated in their contract of
service.
2. EMPLOYER PROVIDENT FUND
• A social security institution formed according to the Laws
of Malaysia, Employees Provident Fund Act 1991 (Act
452) which provides retirement benefits for members
through management of their savings in an efficient and
reliable manner.
• All employers must register their employees with EPF
immediately upon employment.
• Provides a convenient framework for employers to meet
their statutory and moral obligations to their employees.
2. EMPLOYER PROVIDENT FUND
• The Act stipulates a compulsory contribution for
employees. A contribution constitutes the amount of
money credited to members' individual accounts in the
EPF. The amount is calculated based on the monthly
wages of an employee. The current rate of contribution is
23% of the employee's wages of which 11% is from the
employee's monthly wage while 12% is contributed by
the employer.
• Under this Act, all employers and employees except
foreign workers, expatriates and those who are listed
under the First Schedule must contribute to the
Employees provident Fund (EPF). However, they can
choose to contribute at the rate of RM5.00 (employer’s
share) per employee per month and 11% of monthly
wages by the employee.
3. SOCIAL SECURITY ORGANIZATION
• Administers the Employment Injury Insurance Scheme
and Invalidity Pension Scheme provided under the
Employees’ Social Security Act 1969.
• The scheme is compulsory and employer must cover
all employees under SOCSO even if they are covered
under other insurance policies.
• A monthly contribution must be made for each eligible
employee according to rates specified under the Act
(about 2.5% of basic employee’s salary).
• Covers only Malaysian workers and permanent
residents. All establishments, including factories,
employing workers earning wages not exceeding
RM2,000 a month
4. OCCUPATIONAL SAFETY AND HEALTH
• The Department of Occupational Safety and Health
(DOSH) is a department under the Ministry of Human
Resources. The Department of Occupational Safety and
Health (DOSH) is responsible for enforcing compliance
of the law with OSHA 1994. DOSH also enforces
compliance with the Factories and Machinery Act 1967.
• The OSHA 1994 provides legislative framework to
promote, stimulate and encourage high standards of
safety and health at work. The aim is to promote safety
and health awareness, establish effective safety
organization and performance through self-regulation
schemes designed to suit the particular industry or
organization. This Act also defines the responsibilities of
employers, manufacturer, employees, self-employed
workers, designers, importers and vendors.
4. OCCUPATIONAL SAFETY AND HEALTH
(i)
Companies that employ 50 or more Malaysian 1% of employees’
workers monthly wages
(ii)
Companies that employ less than 50 to a 1% of employees’
minimum of 10 employees, with a paid up monthly wages
capital of RM2.5 million or more
(iii)
Companies that employ less than 50 to a Option of registering
minimum of 10 of employees, with a paid-up with the HRDF and
capital of less than RM 2.5 million paying a levy of 0.5% of
(Note : For this category, the Government the employees’ monthly
contributes RM2.00 for every RM1.00 spent.) wages
4. MALAYSIA PRODUCTIVITY
CORPORATION
• Formally known as the National Productivity Corporation
was established in 1962 as a joint project between the
United Nations Special Fund and the Federal
Government, with the International Labor Organization
acting as its executing agency.
• Function of PMC are :
To generate local expertise in the field of productivity, quality,
management and entrepreneurship;
To enhance the development of human resource both at the
supervisory and management levels in the country;
To assess and certify supervisory and management training
programmes, entrepreneurship programmes and productivity
and quality management programmes conducted by the
private sector for the public;
To conduct training or other programmes relating to
productivity, quality, management and entrepreneurship;
5. Perbadanan Usahawan Nasional
Berhad
• Focus is on developing Bumiputera entrepreneurs in
strategic and high potential businesses and also to
provide opportunities to Bumiputera entrepreneurs to
achieve business success; through the provision of
financial and corporate support.
• Business operations are focused on providing
integrated entrepreneur development packages to
assist Bumiputera entrepreneurs in Retail and Small
and Medium sized Enterprise (SME) sectors. These
development packages are designed to help
Bumiputera entrepreneurs develop business acumen,
maintain a profitable venture, and shape their
enterprise; par excellence.
6. Majis Amanah Rakyat
• Incorporated as a statutory body on March 1, 1966 under an
Act Of Parliament, No. 20, 1966.
• Entrusted with the responsibility to promote, stimulate,
facilitate and undertake economic and social development of
the people particularly in the rural areas thereof.
• It is also to encourage, guide, train and assist Bumiputera to
enable them to participate actively and progressively in small
and medium scale commercial and industrial enterprises
towards creating a strong and viable Bumiputera Commercial
and Industrial Community (MPPB).
• In order to create, increase and improve the level of
Bumiputera entrepreneurship and business, MARA have
provided activities such as in entrepreneurship, manufacturing
incubator, consultancy service, marketing promotion and
technopreneur programme.
Other Business
Support System
Other Support Facilities in Malaysia
Entrepreneur
Human Resources.