[UPDATED] Budget 2022: RM4.8 bil for JaminKerja to create 600,000 jobs

KUALA LUMPUR – Budget 2022 will see the government allocate RM4.8 billion under its JaminKerja initiative to create 600,000 jobs in the country.

Addressing the nation’s high unemployment rate, Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz said the implementation of the JaminKerja initiative, which is line with the country’s economic recovery plan, will see the government target the unemployment rate, which stands at 4%.

Tengku Zafrul also announced that the MySTEP initiative will be continued by offering 80,000 work placements in the public sector and GLCs.

“The government will also allocate RM2 billion through Socso (Social Security Organisation) as salary incentives for employers that hire up to 300,000 unemployed individuals.

“Under this initiative, employers who recruit unemployed Malaysians will receive a 20% incentive from their monthly salaries for a period of six months and 30% of their salaries for the next six months from the government subject to jobs paying RM1,500 and above.”

In addition, Tengku Zafrul said, in an effort to encourage employers to provide more job opportunities to focus groups such as the disabled, Orang Asli, and convicts, the government will provide a 30% incentive from their monthly salaries for the first six months and a 40% incentive for the following six months subject to jobs paying RM1,200 and above.

“To encourage more women to return to work, employers will also get an incentive to hire women who have been unemployed for more than 365 days, as well as single mothers and housewives.”

Tengku Zafrul also announced that the Malaysia Short-term Employment Programme (MySTEP) initiative will be continued, offering 80,000 work placements on a contract basis with 50,000 placements in the public sector and 30,000 placements in GLCs respectively from January onwards.

“A total of RM1.1 billion will also be allocated for training programmes and upskilling for 220,000 trainees.”

“The initiatives that will be implemented include training and placement programmes with guaranteed employment.”

Upskilling programmes with industrial partnership, Tengku Zafrul said, will be increased with priority towards digital skills such as the Global Online Workforce programme under Malaysia Digital Economy Corporation.

“For example, Zeti Haiza is a manager at a tourism agency in Melaka. Without foreign tourists, her income is affected. Through the GLOW programme from MDEC, Zeti has since been freelancing through an online platform to generate income from her home in addition to offering her services across the globe,” he said.

Tengku Zafrul said that based on the effectiveness of the training programmes and upskilling under the 2021 budget, more than 85% of trainees have been offered job placements.

In an effort to encourage Keluarga Malaysia to participate in training programmes as well as venture into new fields, Tengku Zafrul said, tax relief for expenses for attending skills enhancement or self -improvement courses will be raised from RM1,000 to RM2,000 until 2023. 

“Moreover, those who participate in courses under approved professional bodies are eligible for tax relief on fees up to RM7,000. 

“Professional courses that are approved include accounting and financing, in addition to environment, social, and governance,” he said.

The government, he added, plans to increase tax exemptions up to RM4,000 to Employees Provident Fund contributors – involving voluntary contributions for those freelancing under the gig sector.

“In an effort to encourage private sector workers to contribute with Socso and protect those that have lost their jobs, the tax relief limit will be increased from RM250 to RM350 with the scope of release for Socso contribution also expanded to cover workers’ contribution under the Employment Insurance System.” – The Vibes, October 29, 2021