Security firms want current licence renewal fee to be reduced

KUALA LUMPUR: The Security Services Association Malaysia (PPKKM) hopes the upcoming Budget 2019 will include an announcement to lower the current licence renewal fee for security firms, by at least 50 per cent.

PPKKM hopes the licence renewal fee could be revised and lowered to a more reasonable price from the current RM3,300, taking effect next year.

PPKKM’S deputy president Datuk Seri Ramli Yusuff said the association looked forward to the new government’s first budget, expecting it to be a comprehensive and balanced budget which benefits businesses as well as consumers.

“We are hopeful that the government will impose a cheaper licence renewal fee, between RM1,000 to RM1,500 for all security service providers in the country. Currently renewal for a year costs us RM3,300 and it is simply too high.

“Besides, with the announcement for firms to renew every two years, firms need to fork out RM6,600 just for the licence. What about the other expenditures we have to absorb such as SST, taxes and operations costs?”

Speaking to the NSTP on PPKKM’s wishlist, Ramli said a revision of the current licence fees was timely, prticularly as the industry was not doing very well at present.

“The security industry of late has not been making profits due to many reasons, including not receiving payment for several months from ministries that subscribe to the security services.

Ramli said the security firms were also burdened with expenditures such as operational costs, guards’ salaries and taxes, and some firms which provided accommodation for the guards also had to pay for the rental and meals.

“There used to be more than 1,200 firms providing security services but now almost 30 per cent had either closed down or ventured into other businesses because of loses,” said Ramli, a former Bukit Aman Commercial Criminal Investigation director.

He claimed that security firms only ccould only make between 3 to 5 per cent profit now as compared to 15 per cent and more in the past.

There are over 200,000 guards including ex-servicemen and government retirees employed as guards nationwide.

Source: NST