12MP MTR: Government focuses on national labour market reform

KUALA LUMPUR - The government will focus on reforming the country's labour market with an emphasis on tackling the problem of skills mismatch, by the end of the 12th Malaysia Plan (12MP).

According to the 12MP Mid-Term Review (MTR) released by the Ministry of Economy today, a dynamic national skills framework will be developed to tackle skills mismatch and complement the Critical Occupations List (COL).

The framework will provide comprehensive and current information on the skills required by industries, as well as improve the COL to identify critical occupations at the regional and state levels.

"These measures will help improve continuous upskilling and re-skilling programmes, as part of the future talent Big Bold measure in meeting the requirements of the industries, which are crucial in reducing underemployment,’’ it said.

To address labour shortage, the MTR said the government will introduce an initiative to encourage employers to hire people aged 60 and above, thus preparing the country as an aged nation.

At the same time, efforts will also be made to increase the participation of female labour by facilitating the setting up of childcare centres by employers and in this regard, existing tax incentives and guidelines on children centres will be streamlined.

"In addressing the labour shortage, the government will encourage employers to hire former inmates and paroled prisoners, including to participate in the Academy in Industry (Ail) programme.

"In addition, refugees who are in the country are allowed to work in certain sectors, while waiting for relocation to third countries. Data on refugees will be consolidated to ensure smooth implementation in hiring refugees,’’ it said.

Meanwhile, engagements with stakeholders will be carried out in formulating a suitable mechanism to implement the progressive wage model, and the National Employment Returns (NER) survey will also be revived to identify trends in wages, employment and skills including on gig workers.

A better wage system will contribute towards achieving a decent living standard and reducing brain drain in the long run.

To improve the welfare of workers, a social protection scheme that covers injuries of employees outside working hours and not related to employment will be introduced to improve the welfare of the workers and to narrow the gap in providing social coverage for workers. - BERNAMA