Government’s latest wage scheme critical for nation’s economic recovery

  • Letters
  • Saturday, 26 Sep 2020

THE Malaysian Employers Federation (MEF) hails the government’s decision to extend the wage subsidy programme as a positive move towards avoiding massive retrenchments and stabilising the labour market (“PM announces ‘Kita Prihatin’ wage subsidy scheme”, The Star, Sept 23; online at

The first phase of the wage subsidy programme was initially intended to end on Sept 30. The government’s latest RM10bil stimulus package gives employers and employees much needed relief with another three months of financial assistance until December.

With assistance from “Wage Subsidy 2.0”, employers will be able to retain their employees until March 2021 and this will alleviate challenges such as cash flow constraints and cost liabilities.

About 1.3 million employees are expected to benefit under this programme, which is aimed at supporting employers still affected by the recovery movement control order, in particular companies with a drop in revenue of 30% or more compared with last year’s revenue.

However, employers are still not out of the woods yet – SMEs and micro enterprises especially are still struggling to make ends meet.

The support by government is critical to the sustainability of business and the future economic well-being of our country.

The MEF thanks the prime minister and the government for the support and assistance given to employees and employers.

The MEF will continue to work with the government and will raise issues faced by employers in this difficult economic environment that is affecting not just Malaysia but also the international community.

The MEF believes that during these challenging and difficult times, employers, employees and their trade unions, and the government must all work together in the nation’s interests and boost the economy.


President, Malaysian Employers Federation (MEF)

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