Guan Eng: Wage incentives under Malaysians@Work initiative will create 350,000 jobs

  • Nation
  • Saturday, 12 Oct 2019

Finance Minister Lim Guan Eng said in his Budget 2020 presentation that Bank Negara is proposing a two-phase restructuring plan for the country’s DFIs to form a new financial institution through the merger of Bank Pembangunan Malaysia Bhd, Danajamin Nasional Bhd, SME Bank and Export-Import Bank of Malaysia Bhd to strengthen the development finance ecosystem

KUALA LUMPUR: The Malaysians@Work initiative under Budget 2020 will create 350,000 jobs and the Employee Provident Fund (EPF) will be in charge, said Finance Minister Lim Guan Eng (pic).

"The purpose of the government is to try to create more jobs for the unemployed, especially unemployed graduates. After years in universities, they are still unable to secure jobs.

"To do that, we have come up with this scheme where we not only incentivise unemployed graduates but also employers to employ these Malaysian workers and graduates. As a start, we know employers cannot pay so high, but if the pay is too low, it is very difficult to motivate Malaysian workers to work. So, we try to bridge that gap - incentivise employers and incentivise the Malaysian workers by giving them the necessary motivations.

"This will create 350,000 jobs - to make this happen, we also realise the implications - that is why we are entrusting the mechanism to implement these incentives to the Employees Provident Fund (EPF) so that we can get employers and unemployed graduates a job which they can use to feed their families. The details of the mechanism would be announced by the EPF in due course," said Lim.

He was speaking to the media at a post-budget media conference one day after presenting Budget 2020 in Parliament.

On Oct 11, during the Budget 2020 presentation, Lim announced that there will be wage incentives to encourage the hiring of unemployed graduates and local workers.

Under the Malaysians@Work initiative, graduates who secure a job after having been unemployed for more than a year will receive RM500 per month from the government for a duration of two years.

Employers will also receive a hiring incentive of up to RM300 per month for each new hire over two years.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 7
Cxense type: free
User access status: 3

Across The Star Online