As workers hit by Covid-19, Putrajaya to spend RM3.7b to create new jobs; RM1.5b for wage subsidy extension

KUALA LUMPUR, Nov 6 ― The Perikatan Nasional administration allocated RM3.7 billion to create some 500,000 jobs under Budget 2021, as it seeks to address rising unemployment caused by the Covid-19 pandemic.

The fund will be channelled into the “Employment Creation Scheme” targeted at creating half a million new jobs through various programmes that include training and upskilling workers.

It also announced today that RM1.5 billion will be spent to extend the Wage Subsidy Programme by another three months, which it said may help up to 70,000 employers and 900,000 workers.

Unemployment rose to 5.3 per cent in the second quarter of this year when the government enforced movement curbs to mitigate the outbreak.

The rate dropped to 4.7 per cent in August, according to government data.

Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz attributed the improvement to the stimulus unveiled between April and July.

Putrajaya will also introduce the MySTEP or Short-term Employment Programme with an allocation of more than RM700 million, offering 50,000 job opportunities on a contract basis in the public sector and government-linked companies (GLC) starting January 2021.

“Under this initiative, 35,000 job opportunities will be offered in the public sector, with priority to fill up positions such as nurses, medical attendants, social welfare officers and temporary teachers.

“Meanwhile, GLCs will offer 15,000 job opportunities that prioritise technical and financial fields as well as extending opportunities for new graduates to participate in apprenticeship programmes,” he said.

Many of the policy measures around jobs under the RM300 billion Covid-19 package have been retained for next year’s spending plan.

This includes a hiring incentive programme now renamed PenjanaKerjaya. Incentives under the scheme have been enhanced, among them raising it to 40 per cent of earnings for employees with a salary of RM1,500 above from the initial flat rate of RM800.

Tengku Zafrul said RM2 billion will be allocated for the scheme.

All these will be supervised by a newly-formed National Employment Council to be chaired by Prime Minister Tan Sri Muhyiddin Yassin.

The panel will coordinate initiatives cutting across ministries and agencies tasked to spur job opportunities, skills enhancement and training for employees, Tengku Zafrul said when announcing the council’s formation.