GOVT MULLS WORKERS’ INSURANCE SYSTEM
> It’s aimed at boosting workers’ social security: Najib
KUALA LUMPUR: Prime Minister Datuk Seri Najib Abdul Razak said the government is considering implementing the Workers Insurance System (WIS) to enhance the social security of workers and facilitate employers’ method of conducting business.
“We are working on the details of the WIS. It will involve the sharing of responsibilities by employers.
“The details will be announced after the engagement process with all parties is completed,” he told reporters after launching the National Workers Day 2016 celebration with the theme “Skilled Workers Drive the Economy” at Dewan Tun Razak, Putra World Trade Centre (PWTC), here yesterday.
WIS aims to help retrenched workers to cover their expenses while looking for new jobs, thus reducing their burden of losing income.
It will also provide counselling services to increase the retrenched workers’ chance of landing suitable jobs.
He said the retraining provided by WIS could increase the skills of workers and assist employers in hiring workers with the appropriate skills.
“WIS gives employers the space to adjust their organisation to suit the change in technology and business structure and reduce pressure due to bankruptcy or downsizing of operation.”
Najib said the risk of conflict due to retrenchment could be reduced because WIS would provide security to workers.
“The implementation of WIS is among the most important features in creating an active labour market policy (ALMP) in Malaysia.
“The availability of a proactive social security programme to assist workers and employers to face world economic challenges is no longer an option, but a necessity,” he added.
He also revealed that the government was implementing various actions to turn out a group of workers who are more competitive to mobilise the economy to a higher level.
Najib said the actions encompassed numerous aspects including boosting skills and the income of the working group.
He said, the government was transforming the mechanism of demand and supply of the Technical and Vocational Education Training (TVET), specifically to meet the 60% need of TVET from 1.5 million new jobs by 2020.
“Among the government’s latest move was the recognition of skills qualifications in public service schemes specifically for Malaysia Skills Diploma (DKM) and Malaysia Advanced Skills Diploma (DLKM) isssued by the Skills Development Department.”
Secondly, Najib said the government was enriching skills training programmes to make them more relevant and integrated to turn out a more skilled manpower.
Najib said the government would also continue providing loan facilities to workers aspiring to boost their skills whether via upskilling, reskilling and multiskilling programmes to support existing skills.
“Among the loan facilities provided is via the Skills Education Fund Corporation (PTK) at the rate of RM750 to RM24,000 depending on the programmes and training sector,” he said.
Under the third action, he said, the government was improving the labour laws and industrial relations practices including participation in the Trans-Pacific Partnership Agreement (TPPA) .