Workers’ welfare a top priority

KUALA LUMPUR: Workers and businesses affected by the Covid-19 pandemic are assured of a wide array of government aid to tide them over the imminent economic slowdown next year.

For a start, various government initiatives will be carried out to rejuvenate the economy in 2021 through the strengthening of human capital and the labour market.

Stressing the need to help those without jobs, Human Resources Minister Datuk Seri M. Saravanan said it was important not only to retrain the workers or find them jobs but to also put cash into the hands of workers with reduced earnings so that they could spend and help to stimulate the economy.

“It’s also vital that my ministry does not work in silos because many of the issues concerning workers and businesses cut across the board, from human rights to trade concerns, ” he said at a media conference here which was also attended by heads of agencies and departments, including the Social Security Organisation (Socso) and Human Resources Development Fund (HRDF) under the Human Resources Ministry.

Under Budget 2021, he added, the government has allocated RM1.288bil for its yearly expenditure and RM4.134bil for social safety nets, skills training and recruitment incentives.

As the nation braces for a high retrenchment rate and an economic slowdown next year brought about by the pandemic, Saravanan spoke about the need to ensure that his ministry applies the “human touch” in providing solutions to workers.

“In dealing with the loss of livelihoods, the officials and agencies under my ministry will make use of all avenues to assist those affected, including to investigate cases of abuse of allocations and unfair dismissals, ” he said.

He said this when asked about the case of an employee who rammed his car into his workplace in Ipoh last Thursday after being dismissed and was killed after he allegedly walked into the path of an oncoming vehicle.

Saravanan also said RM1.5bil has been budgeted for Socso’s Wage Subsidy Programme 2.0, under which employers of big companies in the retail and tourism sectors can apply for the aid for up to 500 employees.

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In addition, there is an allocation of RM2bil for the Hiring Incentive Programme (Penjana Kerjaya) to spur employment.

“The incentives for workers earning RM1,500 and above will now be increased from the flat rate of RM800 to 40% of the monthly income.

“Employers who hire the disabled, long-term unemployed persons, single mothers and retrenched workers will get another 20% incentive of an employee’s monthly income, ” said Saravanan.

“A further incentive of 20% of the employee’s monthly income will be given if a local worker replaces a foreign worker.

“For high-skilled programmes or professional certificates, the maximum rate for training programmes will be increased from RM4,000 to RM7,000.

“That’s not all. An incentive of RM1,000 will be allocated for interns for three months with a RM4,000 training grant under the Internship for Graduates Programme, ” he added.

Saravanan also pointed out that Socso’s Self-Employment Social Security Scheme has been expanded to cover voluntary personnel of the army, police, civil defence and maritime as well as religious teachers and imam, civil servants employed by contract of service and 400,000 delivery riders.

“A total of RM150mil has been allocated to pay the allowances for those seeking employment.

“This will be extended by three months and the rate that can be claimed under the Employment Insurance System will be 80% of the first month’s wage, 50% of the second to sixth month’s wages and 30% for the last three months, ” he said.

On top of that, Budget 2021 has allotted RM100mil to HRDF for upskilling and reskilling programmes, which also cover the private sector.

“Tourism companies will be given levy exception by HRDF for six months beginning January next year, ” he added.

More training funds are also available to Malaysians.

There’s a RM300mil allocation, too, for the Skills Development Fund Corporation to prepare loans to 24,000 participants of technical and vocational education and training (TVET) at public and private training institutions.

“Then there is the monthly allowance under the Sistem Latihan Dual Nasional Plus, which has been increased from RM625 to RM1,000, ” said Saravanan.