In context of Covit 19 and the economic meltdown, there have been preoccupation among influential segment of society of what could transpire in next few months especially on economy. Questions like when would there be a vaccine for Covit 19, and the rate of unemployment is anticipated. It has been projected that 2.4 million workers will lose their jobs due to MCO. The economic stimulus. package for industries is estimated too just last for 2 months and many companies are assumed to be moving towards bankruptcy.
I have also received information that certain hotels have closed down and retrench their staff because they have embarked on a renovation program. Many organizations have made purely business decisions in winding up by being pessimistic on future business outlook without proper consultation with its stakeholders. This has happened in majority organizations that are non-unionize.
While all type of prediction and retrenchment exercises shows a particular trend of downward spiral of the economy, there is lack of direction by the government of the day on what could be done in the present to face the uncertain future.
The focus of the Government should be on how reduce the burden of Malaysian workers who have lost their jobs, working on sharpening the resilience of business and building of human capital as a way of building optimism in the economy. In this context it is vital for Government to play a proactive role rather continue to merely make pronouncements. There are three vital areas that needs to be the focus of Perikatan National Government which is as follows:
Creating a bi-partisan Task force
As suggested in my earlier write up the Perikatan Government should set up a bi-partisan parliamentary committee to address issues related to unemployment. Captains of industry, unions, and economist should be invited to participate in the dialogue on how to secure business and jobs. The objective is to consider specific kind of help industries need to survive the economic crisis and prevent retrenchment. Many Industries have their own peculiarity and issues that needs to be address rather than one size fits all solutions.
Enhance job support scheme
The Government of Countries like Singapore, Denmark and Australia has heavily pump prim their economy to ensure that workers do not go in the downward spiral of unemployment. For example, the Singapore government as come out with a third economic stimulus package that has enhanced the Jobs Support Scheme (JSS) from the previous stimulus package by paying 75 percent on the first S$4,600 (US$3,223) of monthly salaries for each local employee for May 2020. The gig economy workers have also benefited from the broader job support scheme. While every worker and even Directors are covered in Singapore, our gig workers and self-employed are inadequately covered. Our mid-tier companies are not adequately covered in the wage subsidy program resulting some of these industries opting out and retrenching their employees.
Plan to Adopt technology
It obvious that many organizations have fail to go through a proper process before retrenching their workforce. There should have been consultations on cost cutting measures dealing with operational issues and coming up with plans to adopt digital technology and robotics that would reduce the necessity for foreign workers. The Government should work with industries towards this end as matter of building the necessary resilience in facing the new normal.
Training and Development
Training related to reskilling and upskilling should have been initiated. The area of focus should be on the embracing technology besides certifying front line employees to make them professionals. Training facilities should be made available through coordinated efforts of information through the media. More online courses should be introduced as way of learning in the new normal. This would add value to the organizations as it prepares to open up post MCO.
Therefore, it is vital the Government plays proactive role in helping to build resilience in the present by ensuring business viability and Job security in future. The economic recovery would very much depend on consumer spending. If retrenchment exercise is going be severe than economic recovery is going to be a distant dream. The government has no choice but to help industries to survive through aid, adoption of technology and enhancing training and development.
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