To address this, the government’s Budget 2022 provides funds for the “Jamin Kerja Keluarga Malaysia” (Malaysian Family Employment Guarantee) initiative, which aims to create 600,000 job opportunities with an allocation of RM4.8 billion.
Under the initiative that will be managed by Socso (Social Security Organisation), employers who hire Malaysians who have not been actively employed will see the government providing an incentive of 20% of the monthly salary for the first six months for the new hire and 30% for the next six months for jobs with a salary of RM1,500 and above.
Employers are also encouraged to hire Malaysians over foreign workers, where an additional 10% of their salary will be provided to employees each month for a year.
The incentive is also intended to create more employment opportunities for vulnerable groups, such as persons with disabilities, prisoners, ex-servicemen, the Orang Asli as well as women.
After the success of the previous apprenticeship programme, the government will further continue to provide incentives of RM900 per month for six months to employers who hire school-leavers and fresh graduates aged 18 to 30.
To encourage the development of the gig economy, an incentive of RM900 per month for six months would be provided to people employed in this sector.
The Malaysia Short-term Employment Programme (MySTEP) will continue, offering 80,000 contract employment opportunities. The initiative will cover 50,000 jobs in the public sector and 30,000 in government-linked companies (GLCs) starting from January.
The Budget 2022 will also target 220,000 trainees, who will undergo various training and skills upgrading programmes, with a total allocation of RM1.1 billion.
In addition, tax relief for expenses in attending skills development or personal development courses will be increased from RM1,000 to RM2,000 until 2023.
Those who participate in courses organised by approved professional bodies are eligible for tax relief on course fees up to RM7,000.
Double tax deduction is extended to companies that provide scholarships to students in higher education institutes in all fields of study.
The Budget 2022 is an encouraging start, with the allocated aid intending to help affected people build careers and improve the overall economy as the country steers itself out of the pandemic.