Over 100 youth in Khazanah-MTDC programme decry ‘delayed’, ‘lowered’ wages

KUALA LUMPUR – Over 100 participants of the Khazanah Youth Development Programme (K-Youth 2024) have raised concerns about labor issues, including delayed payments and lower-than-advertised salaries, which they claim are affecting their sustainability.

Referring to themselves as ‘Robot Tanpa Tuan’ (Robots without Masters), their spokesperson, Nur Hafizah Alias, said that trainees are part of a program organised by the Malaysia Technology Development Corporation (MTDC), which is understood to be a venture capital entity owned entirely by Khazanah and is tasked with handling their payroll.

She said that the advertised salaries for the program were higher than what was stated in their subsequent offer letters.

Meanwhile, in response to the allegations, MTDC told Scoop that the issues regarding salaries were addressed according to the terms outlined in the apprentices’ offer letters.

“MTDC acknowledges the concerns raised by the apprentices.

“These issues, including differences between gross and net salary, delayed payments, and salary information in promotional materials, have been addressed in line with the terms outlined in the apprentices’ Letters of Offer.

“Appropriate steps have been taken with related parties to ensure a full understanding of the program’s structures and processes among the apprentices, and we will continue to adhere to all relevant standard operating procedures and regulations,” MTDC said in a statement to Scoop.

Despite MTDC’s response, Hafizah contends that their explanations are not satisfactory.

Hafizah mentioned that trainees were initially made to understand that degree holders would be eligible for salaries over RM2,000, but in their offer letter, it was only stated as RM1,700.

“However, I signed the offer letter because of desperation and the fact that I was unemployed for a long time,” Hafizah said when contacted.

With regard to the payment of salaries, Hafizah pointed out that she began her training program on September 2, but she was only paid her first salary on October 15.

At the same time, Hafizah said another disgruntled trainee has already filed a complaint with the Labour Department.

“This program is supposed to be an opportunity to develop talent. But how can talent be developed when we are materially oppressed?” Hafizah added.

Last week, Robot Tanpa Tuan released a press statement highlighting that they are currently embroiled in a legal dispute with MTDC.

They also alleged that the late payment of salaries by MTDC is a violation of labor law, adding that attempts to settle the matter internally proved futile.

The statement also mentioned that this issue raises concerns about the accountability and governance of government-linked companies funded by Khazanah, as the public sector has a responsibility to ensure that employees are treated fairly and equitably. – November 13, 2024