KUALA LUMPUR: The RM1.828bil allocation under Budget 2026 reflects the government’s commitment to upskilling and safeguarding the wellbeing of Malaysia’s workforce, says the Human Resources Ministry.
The ministry said among key measures was the government’s move to cover 70% of contributions under the Self-Employment Social Security Scheme (SKSPS) for gig workers in sectors where participation is not yet mandatory.
“The Social Security Organisation (PERKESO) will also complete four rehabilitation centres in Melaka, Perak, Terengganu and Penang to help injured workers recover and return to work,” it said in a statement.
The ministry added that to assist jobseekers who have lost their jobs, including fresh graduates who need to relocate for employment, PERKESO will provide a mobility incentive of up to RM1,000 to ease their financial burden.
“The maximum haemodialysis treatment aid will also be raised from RM150 to RM170, involving an additional RM52mil a year to ensure workers with chronic illnesses are not overburdened.
“Healthcare protection will be further expanded with PERKESO’s Health Screening Programme now including public transport and delivery drivers,” it said.
The ministry added that the government also continues to strengthen Technical and Vocational Education and Training (TVET) as a core pillar of Malaysia’s new economy, with RM7.9bil allocated.
“In addition, RM3bil from the Human Resource Development Corporation (HRD Corp) levy will offer three million training opportunities in technology and new energy sectors.
“Meanwhile, the Skills Development Fund Corporation will receive RM650mil to finance over 25,000 trainees in strategic fields such as artificial intelligence (AI), electric vehicles (EV) and semiconductors,” it said.
It added that the Industry-Based Academy programme under the Department of Skills Development will receive RM34mil to train local workers directly within company operations, a move expected to reduce dependence on low-skilled foreign labour.
“Training infrastructure will also be enhanced with the construction of a new hangar at ADTEC Shah Alam for aircraft maintenance training and a Teaching Shipyard TVET Marine Complex at Universiti Malaysia Terengganu (UMT) for maritime training.
“An additional RM10mil has been allocated for training licensed taxi drivers to help them improve their skills and service quality.
"At the same time, micro, small and medium enterprises (MSMEs) investing in AI and cybersecurity training will enjoy an additional 50% tax deduction to encourage future-ready skill investments,” it said.
It added that throughout 2025, positive results in the domestic labour market have become evident, with Malaysia’s unemployment rate dropping to 3%, the lowest in a decade.
“Labour force participation rose to 70.8%, while women’s participation exceeded 56%, reflecting the growing number of women contributing actively to the national economy,” it said.
The ministry added that it is now focusing on narrowing the wage gap between genders and regions while ensuring workers’ productivity and skill levels continue to grow in tandem with more dignified wages.
