The optimistic labour force performance in October 2022 reflected the steady nation’s economic fundamentals, resulting from continuously growing economic and social activities. It was coupled with the ongoing policy support to buffer the impact of the rising cost of living and reduce the negative risks associated with lingering geopolitical unrest and tightening external financial conditions.
The Malaysian Government has ramped up supportive measures, pledging to strengthen all affected sectors due to the pandemic.
As a consequence, Malaysia’s economic situation in October 2022 rebounded as compared to the previous year.
The Wage Subsidy Programme (PSU) is a financial assistance paid to the employers of each enterprise to support employers to continue their operations and retain employees under the PRIHATIN and PENJANA Packages. As of 9 September 2022, PSU 1.0 had benefited 322,177 employers and 2.64 million employees with a total approved value of RM12.96 billion.
Additionally, a total of RM1.41 billion has been channelled to 81,244 employers to continue their operations and retaining 720,097 employees through PSU 2.0 under the KITA PRIHATIN Package.
Under PSU 3.0, a total number of 162,410 employers supported to retain 1.53 million employees with RM3.78 billion of allocation channelled to the recipients. In addition, PSU 4.0 under the PEMULIH Package of RM2.59 billion was channelled to 164,040 employers to continue their operation and to retain 1.93 million employees. In the meantime, under PSU 5.0, a total of RM223.91 million was channelled to 8,099 employers to retain 125,920 employees.
Meanwhile, for the retention and generation of jobs, the Perkasa Technical and Vocational Education and Training (TVET) Empowerment Funding Scheme 2022 was provided with an allocation of RM100 million specifically to help those who want to master new skills or improve their skills to meet the needs of the industry.
TVET Training Program is a short-term skills programme (less than 6 months) that includes a full or modular program, Recognition of Prior Achievement (PPT) or based on employer or industry requests under the Malaysian Skills Certification (PKM), Department of Skills Development (JPK), Public Training Provider (PLA) or Private Training Provider (PLS). Eligible trainees will be givenjjob placement or job enhancement opportunities by employers and undergo training at PLA/PLS based on the Place and Train concept.
As of 2 September 2022, a total of 590 trainees have been successfully accepted for this programme. Moreover, the KPT-PACE under the Ministry of Higher Education (KPT), is a professional certification programme based on expertise and credibility. As of 9 September 2022,
RM21.90 million cash vouchers have been distributed to 6,799 final year students and graduates.
Besides that, through the Malaysia Short-Term Employment Programme (MySTEP), a total of 63,593 personnel have been successfully placed through this programme with 36,781 personnel being placed in the public sector, whereas 26,826 personnel were successfully positioned in the GLCs and their strategic partners.
In addition, the National Apprenticeship Scheme (SPN) is an apprenticeship scheme implemented under the Ministry of Youth and Sports in collaboration with other ministries such as the Ministry of Works, Ministry of Human Resources and Federal Agencies under all three ministries.
This programme will train youths to improve employability, get opportunities to be absorbed into employment and earn an income.
As of 2 September 2022, a total of 6,343 youths had been successfully placed using the SOCSO JaminKerja Employment Incentive specifically for apprentices. Next, the InvestKL Fit4Work is a talent training programme under the PENJANA Package to enhance the soft skills element in terms of management skills, knowledge skills, basic skills and IR4.0 technical skills for new graduates.
As of 2 September 2022, a total of 549 participants had been placed through the Fit4Work programme.
Meanwhile, the Peneraju Skill 2.0 which aims to provide training and development programmes to upskill/ re-skill/ top-up skills in critical high-skill and high-value areas that lead to high-income and Peneraju Teknologi, aims to increase the number of Bumiputera in the field of Digital Technology in high-income, critical or new industries (emerging industries) for industries related to Industrial Revolution (IR) 4.0.
Under the supervision of Yayasan Peneraju, a total of 1,895 participants had been approved for the Peneraju Skill 2.0 programme, while 1,055 participants were approved for the Peneraju Teknologi programme. Besides that, out of the total of 4,347 applications, 1,339 participants were successfully placed in technology and digital service jobs through the MyDigitalWorkforce Work in Tech (MYWiT) as of 26 August 2022.
To empower the businesses, the Informal and Micro Financing Scheme (SPIM) aims to restore the capacity of businesses affected by the COVID-19 pandemic. A total amount of RM200 million was allocated and fully utilised to 31,130 beneficiaries under this programme. Next, for the various financing initiatives under TEKUN, RM225.0 million of allocation was provided for the financing.
As of 31 July 2022, there were RM217.94 million of funds was channelled to 15,113 recipients. Furthermore, the Indian Community Entrepreneur Development Scheme (SPUMI) is a strategic initiative of the government under TEKUN, that focuses on assisting the Indian community to improve the economy through business and entrepreneurship, a total of RM21.77 million has been successfully channelled to 1,063 Micro SMEs as of 31 August 2022.
Later, under the Agrofood Facilities (AF) provided by Bank Negara Malaysia (BNM), 2,191 applications were successfully approved from the total of 2,912 applications totalling RM1.67 billion as of 27 July 2022.
What Lies Ahead?
The growing economic and social activities and the continuous increasing number of tourist arrivals by the end of 2022 have led to positive developments in the country’s economic growth.
In line with this, Malaysia’s economy is expected to maintain its growth momentum, despite the slowdown and uncertainties of the global economy, based on current LI indicator, which continue to record year-on-year improvements.
Similarly, business tendency statistics cited by the Department of Statististics Malaysia (DOSM), which express the expectations of business performance for the next three to six months, showed that businesses remain positive on the business situation in the fourth quarter of 2022, with confidence indicators recording +3.2 per cent as compared to +4.7 per cent in Q3, 2022.
As a consequence of the optimistic economic and business performance forecasts, the labour market is expected to be better, whereby more labour will be recruited to accommodate the economy and business needs. As a result, labour demand and supply opportunities will emerge in the market, bolstering the labour market’s positive momentum in the coming months.
