BrioHR shares the SME’s wish list of reforms and measures that could support the industry’s growth and provide better job opportunities for the country’s workforce ahead of the re-tabling of Budget 2023.
Benjamin Croc, CEO and cofounder of BrioHR, said, “The COVID-19 pandemic has had a significant impact on overall employment, with many firms struggling to retain employees and maintain operations. We hope that the government will introduce measures that will support its recovery and growth and help businesses rebuild and create jobs.”
He added, “The budget, according to Prime Minister Anwar Ibrahim, will prioritise economic growth and investment while also protecting the people. We hope that in the upcoming revised budget, various measures, such as investments in education and training, assistance for small and medium-sized businesses, and initiatives to promote workplace wellness and mental health, will be considered. By investing in these areas, we can build a more resilient, adaptable, and productive workforce capable of establishing long-term success and prosperity in an increasingly competitive global landscape.”
Croc stated that Fitch Ratings predicted Malaysia’s GDP growth to moderate from 8.7% in 2022 to 4% in 2023 and 4.8% in 2024 as the government continues to offer relief measures and support for the economy’s swift and comprehensive recovery.
He also hopes that as the government prepares to re-present the revised Budget 2023, it will consider enacting the following policies to support economic growth:
- Employee Wellbeing Provision: We urge the government to consider investing in programmes and initiatives that support employee well-being. By doing so, organisations can improve employee satisfaction, reduce absenteeism, and increase productivity. Wellness programmes and mental health programmes and resources are examples of such initiatives.
- Tax incentives: The government should consider providing tax breaks to businesses that invest in employee upskilling and reskilling. This will encourage more businesses to invest in employee training and development, ultimately benefiting both employees and the economy.
- Encourage Remote Working: The COVID-19 pandemic has accelerated the trend of remote working, and the HR industry believes that the government can support this shift by creating policies that make remote work more accessible and attractive. This could be in the form of providing incentives for companies to invest in the necessary infrastructure for remote work. The added benefit is that this will also ease traffic congestion, as according to Dutch GPS technology and consumer electronics company TomTom, drivers in KL spent over 159 hours on the road in 2022, with 75 of those hours being due to traffic.
- Investment in HR technology and innovation: As the HR industry embraces better and more modern technology, it is critical that businesses have access to the most up-to-date tools and software. To support the industry’s growth and competitiveness, the government should consider encouraging more industries to adopt HR technology.
- Support for Small and Medium-sized Enterprises (SMEs): Talented and skilled employees are quickly becoming key drivers of productivity for SMEs. Thus, the government should do more to help SMEs in attracting and retaining talent. This could include job creation incentives, financial assistance, and training programmes.
Croc went on to say that SME support is critical because they play a significant role in Malaysia’s economy, accounting for more than 98% of total business establishments and contributing nearly 40% of the country’s GDP.
“While infrastructure and industry are undoubtedly important budget priorities, investing in the country’s workforce is critical to long-term economic growth and prosperity. Human capital is a country’s most valuable asset, and investing in it is critical for long-term success. If we want to compete on a global scale while maintaining our economic strength, we must prioritise policies that promote workforce development, training, and well-being.” Croc concluded.
