EXECUTIVE J. Abdul has been working for about 10 years at a manufacturing company in Klang. Throughout her time there, she has seen some of her colleagues getting new and better jobs in other states.
She shares she too has hoped for an opportunity of making the same move to greener pastures one day. Nevertheless, the transfer, she was told, can burn holes in the pocket, especially for those with families.
The recent announcement to provide PERKESO contributors with a one-off RM1,000 Mobility Assistance Allowance by the Human Resources Ministry is therefore a much welcomed news.
"It is definitely a good initiative. It might not seem like a big amount, but for those who are in between jobs especially, travelling cost definitely marks a dent in your wallet.
"So, a one-off allowance like this would make it easier for people to accept new jobs, or relocate to places that is a far away from their home address," says the 37-year-old..
The moving allowance programme, recently introduced by Human Resources Minister Datuk Seri R. Ramanan, will be available to eligible PERKESO contributors who secure new employment located more than 100km from their homes from tomorrow, Oct 1, following amendments to the Employment Insurance System (EIS) Act 2017.
This Government's initiative to represents a practical employment-support measure, says the Malaysian Employers Federation (MEF).
As MEF senior adviser for government, media and international engagement Datuk Dr Syed Hussain Syed Husman points out, "This can help address one of the barriers faced by jobseekers when employment opportunities are located outside their immediate locality.
"Mobility assistance will play an important role in improving the matching of workers with available employment opportunities, particularly where suitable vacancies are concentrated in different regions and locations.
"Employment opportunities do not always arise within commuting distance of a worker’s home. The one-off RM1,000 Mobility Assistance Allowance recognises that relocation and extended travel may involve genuine upfront costs for workers who are prepared to take up new employment."
From the employers' perspective, Syed Hussain says, improving geographical mobility would contribute to a more efficient labour market by enabling vacancies to be matched with suitable workers beyond the immediate local area.
"This is particularly relevant in sectors and regions where employers continue to experience difficulties in sourcing workers with the required skills and experience," he says in a statement.
According to Syed Hussain, the effectiveness of the initiative depends not only on the availability of the allowance, but also on ensuring that eligible workers are clearly informed about the scheme and could access it through a straightforward and transparent application process.
"The success of any employment incentive ultimately depends on accessibility, awareness and timely delivery. MEF encourages PERKESO to ensure that the eligibility criteria, application procedures and payment timelines are clearly communicated to both workers and employers."
Meeting the financial challenge
On the wider enhancements to the EIS announced by Ramanan, including the increase in the Early Re-employment Allowance from 25% to 50% of the remaining unpaid Job Search Allowance for eligible workers who return to employment early, Syed Hussain says the move strengthens the role of the EIS in supporting unemployed workers to reskill and transition into new employment.
The Daily Training Allowance has also been increased from between RM10 and RM20 to RM30, while the maximum Training Fee covered has been raised from RM4,000 to RM7,000.
Syed Hussain says the combination of re-employment, mobility and training support is relevant to the changing requirements of Malaysia’s labour market.
"The labour market is becoming more dynamic. Workers may need to move to where the jobs are, acquire new skills and transition into different occupations.
"A stronger employment insurance system should therefore not only provide income support during unemployment, but also facilitate a faster and more sustainable return to work."
He adds that employers also stood to benefit when employment services and worker-support programmes helped reduce the time taken to fill vacancies and improve the matching between available jobs and suitable candidates.
"For employers, the objective should ultimately be a faster and better job-matching process. Where a suitable worker is available but faces geographical and skills-related barriers, targeted support will help overcome those barriers without distorting the employment relationship."
Syed Hussain says MEF places emphasis on ensuring that employment-support programmes remained targeted, sustainable and responsive to actual labour-market conditions, with periodic assessments of their take-up and outcomes.
"MEF supports a data-driven approach to employment policy. The Government should monitor how many eligible workers utilise the Mobility Assistance Allowance, the types of jobs secured, the sectors and regions benefiting, and whether recipients remain in employment over time.
"Such information will be valuable in assessing the effectiveness of the programme and informing future improvements."
