Its president Syed Hussain Syed Husman said it was important for the government to help revitalise the private sector to spur economic growth.

He said one such way was to continue the wage subsidy programme to assist employers in keeping their businesses afloat.

“MEF hopes that in the event the situation in 2023 warrants the reintroduction of wage subsidies, the government should then assist the businesses with wage subsidies to avert possible mass layoffs,” he said in a statement.

The government has disbursed RM20.89 billion to 357,895 employers through the wage subsidy programme (PSU) as of July 1 this year.

This kept 2.96 million local workers employed in an effort to reduce unemployment due to the economic impact from the Covid-19 pandemic since March 2020.

Syed Hussain, however, appreciated the various initiatives lined out in the budget, such as tax cuts for women returning to the workforce for five years.

“The various income tax reductions and restructuring will enhance the country’s capacity to attract and retain more talent.”