PM: Govt studying proposal to provide indirect subsidy to graduands

PUTRAJAYA: The government is studying a proposal to provide indirect subsidy to graduands in the form of salary and allowance through their employers to encourage recruitment of local workers, said Prime Minister Tun Dr Mahathir Mohamad.

He said the proposal was tabled at a special cabinet meeting on Wednesday which discussed measures to reduce the country's dependence on foreign workers.

“We have a proposal, but no decision has been made. We will study whether we have enough money or not (for the purpose),” he told a media conference after launching the Commodities Global Trade Sdn Bhd's e-commerce platform here yesterday.

A newspaper yesterday reported that the government would consider giving a subsidy of RM6 billion in the form of salary and allowance to graduands through their employers, a move that is expected to benefit about 50,000 youths.

Dr Mahathir said the proposal was also tabled to address problems of locals refusing to work in certain sectors in the country due to low wage.

“But if the wage is too high, the price of our goods will be very high that they cannot compete with goods from other countries.

“Hence, the proposal for the indirect subsidy. This way, salary and income will be higher and our people will want to work and we no longer have to rely on foreign workers,” he added.

Dr Mahathir said the country lost billions of ringgit every year in remittance sent by foreign workers to their countries of origin.

“If money flows out, our country will become poor, if money comes in, our country will be rich... so, if we use our own workers, the money will remain in the country,” he added.