PETALING JAYA: MCA is urging the government to set up an early warning system and an employment stabilisation fund as layoffs increase in Malaysia, says deputy president Datuk Dr Mah Hang Soon.
He said the government must introduce concrete, actionable and time-sensitive plans as layoffs begin to emerge amid current geopolitical tensions.
"The government should have plans to expand the Employment Insurance System (EIS) coverage. Assistance amounts should be increased, and the duration of support extended to provide meaningful protection for affected workers during the transition period," he said in a statement on Sunday (April 27).
Dr Mah said there should be a dedicated fund, particularly for manufacturing and export-oriented sectors.
He said wage subsidies could be introduced to discourage large-scale layoffs, including measures such as reduced working hours without pay cuts or internal redeployment.
He added the Human Resources Ministry should work closely with industry players to strengthen reskilling and upskilling programmes.
"Training allowances should also be provided to help displaced workers transition into new roles more quickly," he said.
Dr Mah proposed a forward-looking monitoring system to identify high-risk industries and provide early warnings to allow timely intervention before layoffs worsen.
He said labour market challenges cannot be addressed by one ministry alone and called for stronger coordination with the Finance Ministry and the Investment, Trade and Industry Ministry.
This, he said, would ensure alignment across policies on subsidies, taxation, investment and employment.
Previously, Human Resources Minister Datuk Seri R Ramanan acknowledged the concerns and said he would announce the ministry's initiatives on May 1, which is Labour Day.
He also noted that 5,900 Malaysians were laid off in March alone, with Selangor and Kuala Lumpur among the hardest hit.
