News: Malaysia's HR Minister to issue plan for the welfare of workers

Employee Relations

Malaysia's HR Minister to issue plan for the welfare of workers

Among the many initiatives, Malaysia's HR ministry is expanding the Wage Subsidy Program, introducing the Employment Incentive Program, and providing the provision of matching grants for the social protection of gig economy workers.
Malaysia's HR Minister to issue plan for the welfare of workers

Datuk Seri M Saravanan, Human Resources Minister, Malaysia announced that he will soon be unveiling a comprehensive plan to ensure the smooth implementation of initiatives under the National Economic Recovery Plan (Penjana) for the welfare of workers. 

“The MOHR (Ministry of Human Resources) welcomes the announcement on Penjana by Prime Minister Tan Sri Muhyiddin Yassin on Friday, and is committed to implementing and ensuring the success of all initiatives related to the ministry, in strengthening the labour market," said Saravanan, in a statement. 

The ministry hopes to help people retain jobs with  the initiatives to be implemented through the Social Security Organisation (Socso) and Human Resources Development Fund (HRDF). 

Saravanan added, "Employees can also seize the opportunity to enhance their skills through the various programs provided by MOHR."

The ministry belives that these initiatives can also add value to the workforce and improve job matching potential, besides increasing the marketability of employees in the job market. 

All of the measures will be implemented by Socso effective June 15, 2020. Here's a glimpse of some of the measures Malaysia is taking up to empower the workforce: 

  • The Wage Subsidy Program implemented under the Economic Stimulus Package (PRIHATIN) has been extended for another three months. 
  • It also includes an allocation of RM5 billion to help companies, especially Small and Medium Enterprises (SMEs) to continue operations without taking drastic measures such as shutting down business or laying off workers. This initiative aims to help more than 2.7 million local workers. 
  • The Employment Incentive Program with an allocation of RM1.5 billion was to encourage employers to provide employment opportunities to local workers, which is expected to benefit more than 300,000 unemployed people. 
  • The initiatives include mobility assistance and training programmes for the unemployed in collaboration with HRDF. They will also be for all the stakeholders not contributing to Socso, including school leavers and university graduates. 
  • The ministry would also provide matching funds of RM50 million for contribution payments under Socso’s Self-Employment Social Security Scheme to protect workers in the gig economy for a year.
  • To support the flexible working system, the government has also introduced an Employment Injury Scheme that will protect workers involved in work-related accidents at home. 

For successful implementation of these initiatives and for them to truly make an impact, Saravanan said, "Everybody needs to play a role and take responsibility in the effort to empower the people." The ministry will closely monitor and also carry out inspections to ensure employers adhered to the rules of protecting the rights and welfare of the workers. 

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Topics: Employee Relations, #COVID-19

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