share on
This would include the development of the National Human Resource Policy Framework and the Progressive Wage Policy.
Malaysia's Ministry of Human Resources (MOHR) has announced its plan for the year 2024.
In line with the Malaysia Madani strategy, the priorities aim to strengthen the network of cooperation between the Government, employers, and employees to produce a more inclusive and participatory policy.
Minister of Human Resources Steven Sim shared in his speech: "I have heard briefings from divisions/departments and agencies under the Ministry of Health and some of the Ministry's policies and plans for 2024 will continue. However, I believe that adding value can be implemented to the concept of tripartism by aligning initiatives for the year 2024 that will lead to the wellbeing of stakeholders.
In preparation for any potential challenges in 2024, MOHR has laid out several Ministry plans to be implemented.
National Human Resource Policy Framework (2024 – 2030)
As part of its commitment to ensuring that the national labour market remains strong and relevant, MOHR is preparing the framework for the National Human Resource Policy (DSMN) 2024 - 2030. Expected to be completed in the second quarter of 2024, the policy serves to prepare a competent labour market to face future challenges such as the development of digital technology, the agenda of an aging country, green jobs, job mismatches, and the need for decent work.
This study will involve extensive engagement with all stakeholders, including employers and employees.
The policy framework comes with the intention of achieving the target of a 35% skilled workforce by 2030, while also supporting the concept of decent work under the International Labour Organisation (ILO) Convention as well as the Sustainable Development Agenda.
The DSMN framework will also support Prime Minister Anwar Ibrahim's aspirations under the Malaysia Madani concept to ensure that the rights and wellbeing of workers are always protected, MOHR said.
Sabah and Sarawak labour law amendments
To better standardise the provisions of labour legislations between Peninsular Malaysia, Sabah, and Sarawak, Minister Sim is working to expedite the amendment of the Sabah Labour Ordinance (Chapter 67) and Sarawak Labour Ordinance (Chapter 76). The amendments to these two labour laws are expected to be tabled in Parliament in 2024.
Gig worker issue management (P-Hailing)
As part of efforts to enhance the protection and welfare of gig workers, MOHR has established a 2024 Gig Activist Pro Tem Committee at the Ministry level to handle issues related to gig workers. The Ministry will also issue the Gig (P-hailing) Guidelines 2024 which will provide guidance on protection and welfare aspects and create a harmonious environment for all parties in this gig ecosystem.
To ensure an appropriate regulatory and legislative policy framework, the Ministry is working closely with the 4th Digital Economy and Industrial Revolution Council through the Sharing Economy Committee. Therefore, the Ministry plans to conduct a study related to the digital labour market in the gig economy focusing on P-hailing workers in Malaysia.
Implementation of the Progressive Wage Policy
MOHR is working closely with the Ministry of Economy on the implementation of the Progressive Wage Policy, which aims to ensure that the reform of the national labour market moves towards increasing productivity as desired by the Government.
Minister Sim asserts: "It is important to ensure that employees receive a salary commensurate with their qualifications, skills, and productivity."
The whitepaper on the proposed Progressive Wage Policy was initially presented and approved in the Dewan Rakyat on 30 November 2023 and the Dewan Negara on 14 December 2023. Following this approval, the proposed pilot project is expected to start in June 2024 with a target of 1,000 companies. It will involve workers earning less than RM5,000 per month from various sectors.
The implementation of the policy will see MOHR lead all four working committees under the Progressive Wage Policy Implementation Working Committee, as stipulated in the Progressive Wage Policy Whitepaper:
- Working Committee on Policy Development;
- Working Committee on System Development Work;
- Working Committee on Skill Improvement, and
- Working Committee on Proposed Annual Salary Increase Guide.
[ALSO READ: Malaysia to kick off Progressive Wage Policy project in June 2024]
Malaysia Madani Strategic Framework (KSMM)
The Performance Surge Coordination Unit of the Prime Minister's Department (PACU) has developed a new Malaysia Madani Strategic Framework (KSMM) aimed at combining, mapping, and organising the strategies and initiatives that have been planned under the main policies of the country involving all ministries.
The strategy has been aligned with the Mid-Term Review (KSP) of the 12th Malaysia Plan, and is the main focus of Budget 2024.
In that vein, MOHR noted that the main purpose of organising the engagement sessions on the framework by cluster is as follows:
- to provide information on the framework;
- to inform on the main tasks and roles of the PACU, which are:
- as the Madani Key Performance Indicator (KPI) Secretariat that coordinates the Ministerial Performance Review (MPR) for members of the Council of Ministers;
- as the Secretariat and main coordinator of the one-year programme with the Madani Government, which was held from 8 to 10 December 2023 at the Bukit Jalil Stadium;
- as coordinator of the Madani Mediation Programme under the Special Task Force on Agency Reform (STAR), and
- as a monitor and facilitator of the implementation of ministry programmes/projects under KSMM.
The proposed initiative criteria to be included in the KSMM are as follows:
- the ministry's KSMM initiative to be aligned with the Chief Secretary's KPI (KSU) or the respective minister's KPI to facilitate reporting and monitoring;
- the initiative submitted by the ministry/agency should be a minimum of three programmes and a maximum of six, and
- the list of KSMM initiatives of the ministry must be approved by the respective KSU.
Social security protection for employees
Social security protection for employees will align with current developments, especially risks such as climate change, technology, economic patterns, and the job market.
In this regard, there will be an increase in the monthly salary ceiling for SOCSO contributions from RM5,000 to RM6,000. This will also see an increase in cash benefits at a rate of 20.2% for the benefit of 1.45mn workers and their dependents.
This can further improve SOCSO's social security protection by increasing the benefits under both Acts, such as temporary disability benefits, permanent disability benefits, retirement pensions, and more, MOHR stated.
Management of foreign workers
According to Minister Sim, the management of foreign workers must be based on three main criteria:
- employer screening in terms of compliance with labour laws,
- approval of foreign workers based on genuine demand from employers, depending on quotas set by the relevant sectors, and
- national security in terms of source countries and individuals brought in for employment purposes.
These three criteria are key in ensuring aspects of economic growth, business continuity, and national security is guaranteed from external elements. To reduce dependency on foreign workers, Minister Sim affirmed that the Ministry will also pay full attention to optimising the local workforce in the national job market and the transition to automation and mechanisation.
Minister Sim concluded: "I hope that with this planning and direction, KSM will be able to achieve its goal of ensuring that the national labour market continues to be strong and ensure that workers receive wages commensurate with their qualifications, skills, and productivity."
Lead image / 123rf
share on
