Kesuma’s legal reforms: Towards a more inclusive labour system


PETALING JAYA: The Human Resources Ministry (Kesuma) is set to table four legislative amendments aimed at strengthening worker protection and enhancing the national Technical and Vocational education and Training (TVET) ecosystem.

The approval of these four key Acts is expected to benefit millions of workers, students and youths.

These reforms include expanding 24/7 social security coverage, strengthening assistance for displaced workers, aligning skills standards more closely with industry needs and ensuring more sustainable access to skills training financing.

Key impacts of the approval of these four amended Acts:

  • Act 4 (Employees’ Social Security Act 1969): Introduces the 24/7 Protection Scheme, providing comprehensive, round-the-clock protection for workers (including outside working hours), covering approximately 10 million workers in the formal sector;
  • Act 800 (Employment Insurance System Act 2017): Enhances the safety net for workers who lose their jobs through increased financial assistance, improved employment interventions and stronger re-employment support;
  • Act 652 (National Skills Development Act 2006): Strengthens the national skills standards to be more responsive to industry requirements, introduces three new categories under the Malaysian Skills Certificate (SKM) and improves the quality of TVET and the employability of youths and students;
  • Act 640 (Skills Development Fund Act 2004): Ensures broader and more efficient access to skills financing to support upskilling and reskilling training programmes.

The second and third readings for all four amendment Bills are expected to take place in early December 2025.

These legal reforms reaffirm Kesuma’s commitment to building a more inclusive, responsive and competitive labour and TVET ecosystem — ensuring Malaysian workers and youth are well-prepared to meet future economic challenges.

 

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