The request came as the government analyses their upcoming 2023 Budget
The Malaysian Employers Federation (MEF) is encouraging the government to extend wage subsidies to continue helping employers in hiring and prevent potential layoffs.
"MEF is of the view that wages subsidy programmes as introduced in 2020, 2021, and 2022 be continued to assist employers to sustain employment of the employees and assist the country to stabilise the labour market," said MEF president Dr Syed Hussain Syed Husman. "MEF hopes that in the event the situation in 2023 warrant the reintroduction of wages subsidies, the government should then assist the businesses with wages subsidies to avert possible mass layoffs."
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Free Malaysia Today reported that the government's wage subsidy programme helped over 357,000 employers to keep about 2.96 million local workers stay at work amid the pandemic. Syed Hussain's remarks came as the government tabled its Budget 2023, which the MEF praised as it "fairly assisted" businesses and employees ahead of potential challenges the following year.
Under Budget 2023, the Malaysian government is offering incentives for employers that will hire youth members who have been unemployed for more than three months. The RM150-million initiative, called the Social Welfare Employment Initiative, is expected to open careers for more than 70,000 job seekers, according to the MEF.
The federation said the tourism sector will be receiving RM200 million to boost the sector under Budget 2023, with another RM20 million earmarked to boost the Malaysia Healthcare Travel Council. Budget 2023 also allocates RM150 million for employment incentive, which will encourage marginalised groups, such as the disabled, ex-convicts, Orang Asli and women, to join the workforce.
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There are also various income tax reductions and restructuring outlined in the budget, according to the MEF, which will "enhance Malaysia's capacity to attract and retain more talent." For women, there will be income tax exemptions for five years for those who return to the workforce after taking a "career break."
"The incentive is expected to draw more women that left the labour force to take up employment," the MEF said.
There is also an allocation of RM20 million and 3,000 trainers for the National Dual Training System to encourage more trainees to undergo training and meet the requirements of more skilled employees, the MEF said.
