The Institute of Strategic Analysis and Policy Research (Insap) said in a statement that by allowing jobless micro firm owners, gig workers, self-employed workers, and contract-based workers access to the facility, it also broadens the EIS’ base of contributors in the future.

“In other words, the government’s expense on temporary income support is, to some degree, self-funded,” said Wong Chin Yoong, an economic advisor to Insap, in a statement.

The EIS, under the Social Security Organisation (Socso) offers unemployment benefits and job search assistance should anyone lose their job for reasons like retrenchment, redundancy and so on.

Such recurring support would allow affected families unable to access other aid measures to stay afloat until the end of the year, when increased vaccinations should allow for more of the economy to reopen and businesses to operate.

Wong said current aid measures, such as the loan moratorium and wage subsidy, were not effective in helping informal workers and micro-business owners, many of whom exist in the service sector, as many do not have loans to pay. High job losses in the service industries also prove the measures aren’t working.

He said that as the service sector does not trade as much as the industrial sector and requires more human interaction, these businesses have failed to register notable recovery in the last three financial quarters.

In addition, he said, job losses have outpaced new jobs in the sector, which further shows that job creation initiatives like PenjanaKerjaya are not working as intended.

“To keep the affected households afloat and resilient amid transiting towards reopening and recovery, the most effective way is to provide temporary but recurring income support for the affected individuals,” Wong concluded.