Govt yet to decide on unemployment insurance scheme

  • Business
  • Tuesday, 12 Jun 2012

KUALA LUMPUR: The government has yet to decide on an unemployment insurance scheme as the feasibility study is still ongoing, said the Minister of International Trade and Industry and the Minister of Human Resources.

In a joint statement issued by Datuk Seri Mustapa Mohamed and Datuk Seri Dr. S. Subramaniam, they said the scheme was still at its fact finding and consensus building stage.

"No decision has been made either as to its structure, implementation or its funding mechanism. The government has no intention to introduce the unemployment insurance scheme until all stakeholders are fully engaged and consulted prior to finalising the study," they said on Tuesday.

The statement was released following recent news reports about the issue, especially from the small and medium enterprises (SMEs).

Mustapa and Dr Subramaniam had categorically stated the feasibility study for the scheme was still at its fact-finding and consensus building stage.

They said a tripartite project panel had been set up to monitor and provide guidance.

The panel is chaired by the chief executive officer of Social Security Organisation (SOCSO) and the members comprised of representatives of the Ministry of Human Resources, Malaysian Employers Federation (MEF) and the Malaysian Trade Union Congress (MTUC).

As SMEs accounted for 99% of business establishments, they said MITI would take the lead to engage with this industry segment for consultation.

MITI would then provide its feedback to the tripartite project panel.

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