Malaysia

Over 81,000 job losses despite wage subsidy, retention schemes

Employment Insurance System records total of 99,696 retrenched individuals up till November 27, says deputy HR minister

Updated 5 years ago · Published on 03 Dec 2020 12:37PM

Over 81,000 job losses despite wage subsidy, retention schemes
The government will extend a targeted wage subsidy programme by another three months, given the state of the economy. – The Vibes file pic, December 3, 2020

by Rachel Yeoh

KUALA LUMPUR – Even with the government’s wage subsidy and employment retention programmes, Malaysia still recorded 81,217 job losses, said the deputy human resources minister.

In his winding-up session in the Dewan Rakyat today, Awang Hashim (PAS-Pendang) said up till November 27, the Employment Insurance System (EIS) recorded 99,696 retrenched individuals.

“Even with our programmes, some employers have no choice but to let go of their employees,” he said, adding that those affected are mostly in the tourism, manufacturing, wholesale and retail industries.

The reasons for retrenchment include company shutdown, downsizing, voluntary separation scheme, mutual separation scheme, critical financial problems, partial closure, acquisition of company, and company relocation, he said.

“There were 81,217 job losses even though the wage subsidy and employment retention programmes were launched by the government. We are doing our best to tackle this.”

According to EIS, 13,109 of the job losses involve managerial positions, professionals (26,079), and technicians and associate professionals (19,095).

They earn more than RM4,000 a month, making them ineligible for Putrajaya’s protection schemes.

According to the Social Security Organisation, 75% of the workers who lost their jobs are from the B40 group, earning below RM4,000 a month.

High earners who find themselves being laid off are eligible for the job search allowance.

Due to the state of the economy, especially the tourism industry, the government will extend a targeted wage subsidy programme by another three months.

Awang was replying to former human resources minister M. Kula Segaran (PH-Ipoh Barat), who asked if there are additional plans to tackle unemployment, as current programmes have benefited only 40% of those who lost their jobs.

“These programmes are ongoing, the percentage will increase. The process for us to protect workers who have lost their jobs due to Covid-19 is ongoing,” said the deputy minister.

“So far, it is at 40%, and it will increase again. We cannot, in the immediate future, reach 100%.” – The Vibes, December 3, 2020

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