>> MIM Speaks
`SET UP CHILDCARE CENTRES WITHIN THE COMMUNITY'
AUGUST 23, 2001 (P.7) -
BUSINESS TIMES
AS MALAYSIA progresses towards the knowledge economy, more and
more skilled and well-qualified women are expected to join the
workforce.
Statistics show that women contributed about 44.4 per cent of
the total labour force in the year 2000.
However, when we consider that women made up 55.5 per cent of
the undergraduate population, we can see the loss to the nation
created by the non- participation of this major component of
our human resources.
Work life balance is a perennial issue with most working women.
The lack of childcare centres nationwide is a major constraint
and may result in women dropping from the job market due to
their responsibilities in taking care and bringing up their
children.
INCENTIVES FOR SETTING UP CHILD CARE CENTRES
The Government and non-governmental organisations (NGOs) called
for the establishment of childcare centres at the workplace, as
they argued that it will help the working mothers in taking
care of their children.
The National Unity and Social Development Ministry has reported
that by March 2001, only 74 childcare centres had been
established at the workplace, of which 55 were from the public
sector while 19 were from the private sector.
A special grant of RM50,000 had been allocated by the
Government to any Federal Government department or agencies
that set up a childcare centre at their workplace.
The question that arises is why even with such an attractive
grant, there are many other Federal Government agencies and
departments that are yet to set up childcare centres at the
workplace.
Private sector employers were often taken to task for their
unwillingness to set up childcare centres at the workplace.
Let us examine whether the initiatives and incentives provided
by the Government are attractive enough to encourage the setup
of childcare centres by private sector employers.
Tax rebate of 10 per cent over 10-year period on the building
cost of a childcare centre at the workplace is given to the
private sector, as an incentive for the employers to set up a
childcare centre for their employees.
The 10 per cent exemption of tax on the building of a childcare
centre is inadequate.
Additional incentives are necessary to persuade more employers
to establish childcare centres.
As an example, a neighbouring country provides financial
support to non-profit organisations and employers for the
development and expansion of childcare centres.
The subsidies include a full subsidy for the conversion of void
deck spaces into childcare centres; below market rentals for
non-profit organisations using premises of the authorities; and
capital grants for purchase of furnishing and equipment.
HIGH COST OF SETTING UP AND OPERATING CHILD CARE CENTRES
A private sector employer will have to bear high cost in
establishing and running a childcare centre at the workplace.
In addition to the initial costs in terms of setting up of
premises, appropriate furniture and equipment, the operational
costs of running such centres are heavy.
It has been estimated that to equip a childcare centre that can
Accommodate 50 children, it costs at least RM50,000 to purchase
equipment, books, toys and furniture while the operational
costs per month is about RM10,000.
Thus, if every 539,397 employers (based on the registered
companies with the Registrar of Companies, as of December 2000)
is required to set up child care centre at the workplace, it
would cost employers RM26.96 billion (539,397 times RM50,000)
to equip the centre and monthly operational cost of RM5.39
billion (539,397 times RM10,000).
A child minder in the childcare centre must be qualified,
experienced and trained.
Employers have to bear all the cost in recruiting the qualified
childminder to provide the best childcare service to their
employees children.
Therefore, to establish a childcare centre at the workplace
involves high cost and will add to the existing high cost of
doing business in Malaysia.
BUREAUCRATIC PROCEDURES
Malaysian Employers Federation (MEF) is also of the view that
employers are reluctant to set up childcare centres at the
workplace because of the cumbersome bureaucratic procedures
involved in obtaining the necessary approval for setting a
childcare centre.
Currently, there are too many regulations and restrictions in
getting a permit to establish a childcare centre.
For example, employers need to get permission from the Ministry
of Education under the Education Act 1961 to establish
childcare centre; Fire Department approval to ensure the safety
of the premise; and Health Ministry to ensure the cleanliness
and the health of the children is protected.
The requirement for the childcare centre to be located not
beyond the second floor would mean higher rental of premises
and operational cost especially for employers located in the
cities.
After going through all of these processes and procedures which
take a long time, the permit is only valid for one year and
needs to be renewed yearly. This involves extra workload for
the employers.
Therefore, a one-stop centre or agency need to be established,
where employers can easily get through all the procedures
necessary to secure the required permit.
The existing rules and regulations pertaining to the
establishment of childcare centres inhibit and do not
facilitate the set-up of childcare centres at the workplace.
These rules should be reviewed in order to facilitate and
encourage employers to set up childcare centres.
TRANSPORTATION PROBLEMS
In establishing a childcare centre, transportation is also one
of the limitations, especially to those employees using public
transport to their workplace.
Employees who commute using public transportation would find it
difficult to bring along their toddlers or their infants to the
place of work. It is not conducive for children to travel along
with their parents using the public transport. Besides that,
children have to wake up early in the morning to follow their
parents to the workplace.
The problem is compounded further as the Road Transport
Department would not permit factory buses to ferry children as
these buses are not licensed for such purposes.
IMPRACTICAL TO HAVE CHILDCARE CENTRESAT WORKPLACE
A workplace is not a suitable environment for a child to grow
up. Children need good and healthy environment for their mental
and physical development.
In the absence of a safe and healthy environment, the
development of the child may be jeopardised.
If in the case a childcare centre is to be set up at a factory
that deals with chemicals, it may be hazardous for children to
be brought up in such environment.
Moreover, in a factory environment, the space for the children
to move around is limited.
The proposal to make it mandatory for all the employers to
establish childcare centres at the workplace is, therefore, not
practical.
CONCLUSION
Based on the above factors, MEF is of the view that childcare
centres should be established by the Government in each local
community in appropriate locations which will be convenient to
mothers as well as conducive for the development of the
children.
Just like schools which are set up in residential areas,
childcare centres set up within the community would ensure that
children are brought up in a familiar and safe environment.
It would also be cost-effective because such centres would be
able to service the whole community instead of each employer
having its own childcare centre at the workplace.
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