Building Malaysia’s Workforce For The Next 10 Years: All The Initiatives Announced

The Ministry of Human Resources (KESUMA) has fully endorsed a series of landmark initiatives announced by Prime Minister Dato’ Seri Anwar Ibrahim during the 2026 National Labour Day celebrations.

Under the theme “Pekerja MADANI Kesuma Bangsa,” the government introduced a holistic roadmap designed to elevate the status of the workforce and modernise Malaysia’s labour landscape for the next decade.

1. National Human Resource Policy (DSMN) 2026–2035

The government has finalised the nation’s first comprehensive policy framework for labour management. The DSMN 2026–2035 will integrate skill development, industrial relations, and social security under a single strategic umbrella, ensuring Malaysia remains competitive in the global talent market.

2. The RM710 Million PACE Package

The Progressive Acceleration for Capability and Employment (PACE) package was launched to safeguard jobs and enhance employability. It is built on four pillars:

  • Social Safety Net (RM580 million): Strengthening Employment Insurance System (EIS) benefits to assist those facing job loss.
  • Training & Placement (RM100 million): Specialized advancement programs by HRD Corp and MYFutureJobs specifically for youth and vulnerable groups.
  • Gig Worker Empowerment (RM20 million): Funding for skill training and social protection for e-hailing and p-hailing workers.
  • SME & Startup Talent (RM10 million): Matching grants by TalentCorp to help smaller businesses train future-ready talent.

3. Post-Maternity Allowance (EPCB)

In a major win for women in the workforce, the government proposed the Post-Maternity Allowance under the Employment Insurance System Act 2017. This financial support aims to help over 132,000 women transition back into employment after childbirth, encouraging higher female labor force participation.

4. Global Social Protection: The ‘Traveler Scheme’

For the first time, PERKESO (SOCSO) protection will be extended to Malaysians working abroad. Known as the Skim Pengembara, this initiative will benefit approximately 480,000 cross-border workers, ensuring that social security follows Malaysian citizens regardless of where they are employed.

5. Flexible Work and Access to Justice

To address global energy trends and work-life balance, KESUMA is advocating for targeted Work From Home (WFH) arrangements and encouraging the private sector to adopt Flexible Work Arrangements (FWA). Additionally, the ministry will launch a Mobile Labour Court to ensure workers in rural or remote areas have direct access to legal redress.

6. Future-Proofing Talent

The ministry also announced the establishment of the KESUMA Semiconductor Academy (ASK) and the MADANI Inclusive TVET (TiM) program. These institutions are designed to ensure Malaysians are equipped for high-value industries, specifically in the global semiconductor supply chain.

KESUMA noted that these reforms are aligned with the 13th Malaysia Plan (RMK13), targeting a higher median wage and a more resilient, inclusive labor market. The 2026 Labor Day announcements mark a significant shift toward a “progressive” ecosystem where social protection and skill acquisition are treated as fundamental rights for all workers.

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