Malaysia is set to spend US$900 million to create 500,000 jobs

When COVID-19 struck, the unemployment rate in Malaysia shot up to 5.3 percent in May, 2020, before hovering at 4.7 percent in July.

To mitigate the impact of the pandemic, the Malaysian government is set to invest some US$900 million (RM3.7 billion) to generate 500,000 jobs.

In his tabling of the Budget 2021 in the Parliament on 6 November, Malaysia’s Finance Minister Tengku Zafrul Tengku Abdul Aziz said the funds will be used to start upskilling and retraining programs.

Dubbed Job Generation Guarantee Scheme (Skim Jaminan Penjanaan Pekerjaan) aka JanaKerja, the Malaysian government will be spending US$480 million (RM2 billion) to create 200,000 jobs.

Meanwhile, incentives for Malaysians earning US$363 (RM1,500) will be increased by 40 percent from the flat rate of US$194 (RM800) permonth.

“To encourage the creation of greater employment opportunities for disabled (OKU) groups, person who have been unemployed for a long time and those who were retrenched, employers will be given an additional incentive of 20 percent (to hire the affected groups),” New Straits Times reported Zafrul as saying.

This, Zafrul said, will bring the total incentive received by the employers to 60 percent. These incentives, however, will only be given for a period of six months.

Follow Mashable SEA on Facebook, Twitter, Instagram, and YouTube.

Cover image sourced from SAYS.