JobsDB Malaysia Survey
Mini Budget: What’s in for Human Resource?
It may not be the ultimate solution, but the recent announcement on mini-budget may provide some relief to Malaysians affected by the ongoing economic turmoil. Announced in mid of March, Finance Minister and deputy Prime Minister Datuk Seri Najib Tun Razak asserted that employment would be key consideration for the additional RM60 billion stimulus package.
“Given the current global economic environment, companies particularly in the manufacturing sector, have had to stop or reduce operations,” he said during the mini-budget speech.
Najib noted that unemployment rate in 2009 would be increased to 4.5% compared with 3.7% in 2008. Since October 2008, a total of 25,000 workers have been retrenched, while 30,900 have been temporarily laid-off and 23,900 had to take paycuts. In addition, about 100,000 workers have not been given overtime work, resulting in significant reduction in income, he said.
Training and job opportunities
“To assist them, the Government will create a total of 163,000 training and job placement opportunities in the public and private sectors,” he said.
Of the 163,000, a total of 100,000 training opportunities and job placements will be undertaken as joint collaboration between the Government and the private sector. This will be implemented through training programmes by various Government agencies, including government-linked companies (GLCs), and the private sector, including private training institutes.
“The main objective is to enhance skills to meet industry requirements, as well as employability,” Najib said. “The Government will also implement job placements and provide incentives to employers to recruit and train local workers. The intention is also to reduce dependence on foreign labour. An allocation of RM700 million will be provided for this purpose.
Among the measures to be taken include increasing the number of participants under the Special Training and Re-Training Programmes for retrenched workers and the Dual National Training Scheme to enhance skills of those currently employed.
Other measures include increasing the number fo training programes, provision of on-the-job training for unemployed graduates, provision of 2,000 training opportunities ajd job placements in government linked companies.
In addition to that, Perbadanan Usahawan Nasional Berhad (PUNB) will implement attachment training programmes for graduates and those with skills certificates.
“Participants will be placed in PUNB investee companies for a period of 6 months to a year,” Najib noted. “On completion of training, qualified participants will receive financial assistance from Projek Pembangunan Usahawan Dalam Bidang Peruncitan (PROSPER) to venture into business. PUNB targets 2,000 graduates to be trained under the attachment programme
The government, he said, will also establish 22 JobsMalaysia Centres and upgrade 109 existing centres.
“These Centres will be located in high-density public areas, including shopping complexes to facilitate access for workers and employers to obtain job placements, career counselling and information on training opportunities,” Najib added.
Welfare of the tretrenched
On the welfare of retrenched workers, Najib urged private companies to contribute towards providing job for them, including those who have opted for voluntary separation scheme (VSS).
“To support this endeavour, the government proposes that employers who employ workers retrenched from 1 July 2008 be given double tax deduction on the amount of remuneration paid,” he said.
The amount of remuneration eligible for this deduction shall not exceed RM10,000 per month and is limited up to 12 months remuneration per employee. This incentive is applicable to workers employed from 10 March 2009 to 31 December 2010.
In addition, Najib said the government will recruit 63,000 staff to fill vacancies and serve as contract officers in various government agencies. For this, the Government will first expedite recruitment for 50,000 vacant posts at the support and professional level in the Federal civil service.
Secondly, he said, the government Create additional 13,000 jobs for officers on a contract basis in Government agencies, as follows:
i. Recruit 4,000 officers on short-term service with minimum Sijil Pelajaran Malaysia qualification and monthly salary of RM1,200;
ii. Recruit 1,000 graduates as school teachers on contract basis with monthly salary of RM2,000;
iii. Recruit a total of 800 contract workers to strengthen the implementation of Program Cari under the Ministry of Women, Family and Community Development for a period of six months to a year;
iv. Recruit 1,000 Public Health Assistants on contract basis in local authorities for control and prevention of infectious diseases, such as dengue;
v. Recruit a total of 4,500 contract officers as enumerators in the Department of Statistics to carry out population census; and
vi. Recruit 1,700 nurses and health support staff in the Ministry of Health.
Post Grad education.
The stimulus package also emphasises post graduate education for Malaysia, which include masters and Ph D course.
According to Najib, the government will undertake to finance tuition fees and research grants up to RM20,000 for every student pursuing PhDs locally. For students in the Masters programme, the Government will provide up to RM10,000 per student. A total of 500 places will be provided for studies at PhD level and 10,000 at Masters level in public institutions of higher education as well as at Universiti Tenaga Nasional (UNITEN), Multimedia University (MMU) and Universiti Teknologi PETRONAS (UTP).
“The programme is open to all Malaysians and selection based on merit,” he said, noting that the Ministry of Higher Education will implement the programme.
He also pointed out the PROSPER Graduate Programme that was implemented in June 2005 to assist Bumiputera graduates in retail or distributive business with training, financing and business advisory services.
Najib said participants are offered syariah-based financing of between RM5,000 to RM50,000 with a repayment period of 3 to 7 years. To date, a total of 334 businesses have been successfully established.
“To develop more young entrepreneurs, PUNB will expand the scope of the Graduate PROSPER Programme to include those with skills and technical certificates,” Najib said,
Foreign Workers
Meanwhile, Najib also pointed out that the government will continue to take steps to reduce the dependence on foreign workers and give priority to hiring local workers. F
Among others, levy on foreign workers will be doubled for all sectors except construction, plantation and for domestic maids. The levy will be paid by the employers and not by the workers, he noted.
In the event the services of foreign workers are prematurely terminated, the levy will be refunded on a pro-rated basis to the employers.
The government will also freeze the issuance of licences to foreign labour recruitment agencies and tighten the conditions for recruitment of foreign workers by existing agencies.
These are among the initiatives aimed as part of the main thrust of the stimulus package, namely reducing unemployment and increasing employment ppportunities. With the allocation being sent out (at the time of writing), we can now keep our fingers crossed and hope for the best.
(Source: Jobsdb Malaysia)
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