Malaysia: Proposed Unemployment Insurance Plan Worries Employers

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By Michael Mackey

May 11—A key employers group has outlined concerns about a proposal by the Malaysian government to implement an Employment Insurance Scheme.

“It is better to remain status quo until the private sector organizations and stakeholders have been consulted and all the details disclosed and discussed and consensus has been achieved,” Dato’ Low Kian Chuan, secretary general of the Associated Chinese Chambers of Commerce and Industry of Malaysia told Bloomberg BNA.

“ACCCIM is not going to set up any special committee on the proposed EI, but we will work closely with other chambers of commerce/trade organizations,” Low added.

Employer concerns Low outlined included management of the fund (will a new agency be set up or the job assigned to an existing one?), coverage, contributions, eligibility and unclaimed benefits.

Contributions figure large among Low's concerns: will they be voluntary or mandatory, will they be affordable for employers and employees, will there be a cut-off point at which liability for contributions ceases?

Whether foreign workers will be covered by the plan appears to be an open question, although the exclusion of terminated employees is clear enough.

To contact the reporter on this story: Michael Mackey in Bangkok at correspondents@bna.com

To contact the editor responsible for this story: Rick Vollmar at rvollmar@bna.com

For more information on Malaysian HR law and regulation, see the Malaysia primer.