Stimulus should address more inclusive, sustainable solutions

MP SPEAKS | First, I would like to welcome the RM250 billion stimulus package unveiled by the government to mitigate the economic impact of the Covid-19 pandemic, particularly the healthcare aid – helping frontline medical staff or healthcare providers who are tirelessly working and putting their lives on-the-line to protect and heal us from the Covid-19 virus.

In times of crisis, it is truly humbling to witness that frontline workers such as our medical staff, cleaners and garbage collectors are our unsung heroes who have played such a pivotal role in Malaysia’s progress and economy over the years and now, even more so.

It is my humble opinion that we should build stronger foundations for our economic system – one that is shaped with the importance of social justice; focusing on essentials. In a nutshell, Malaysia requires a sustainable approach that protects the common man – irrespective of race, religion and economic background.

As a Malaysian first, I wish to highlight some of my concerns regarding the sustainability of the RM250 billion stimulus package.

For any economic stimulus package to bear fruit in regard to creating social justice, it has to be inclusive, comprehensive, differential and sustainable. While the government has put in efforts to devise a comprehensive and inclusive package, there are still gaps.

What is missing is the value-added sustainability and differential elements that are vital to keeping businesses alive and the protection of jobs for many employees in the next six months. If we’re not careful, the unemployment rate could increase with 2.4 million workers at risk of losing their jobs, according to the Malaysian Institute of Economic Research (MIER).

For example, the RM600 monthly wage subsidy for three months to help retain staff who earn below RM4, 000 is not sustainable. As a matter of fact, it should be raised to RM1, 200 or 50 percent of the employee’s monthly pay for nine months.

According to the Malaysian Association of Hotels (MAH), due to the economic situation and extended movement control order (MCO), a total of 2,014 hotel employees had been laid off, while 9,773 employees had been given unpaid leave and 5,054 had taken pay cuts.

This data clearly illustrates the fact that there is a severe cash flow crisis that calls for the government’s attention. There needs to be a sustainable plan in place to ensure that a sufficient amount of aid is available to those that need it to ensure job security in this sector. Furthermore, the hotel and tourism industry are the most affected by the Covid-19 virus. 

Additionally, I wish to highlight that the concerns of our gig workers were not fully addressed in the stimulus package. 

According to the World Bank data, about 26 percent of the Malaysian workforce are freelancers and the numbers are growing by the day. This number goes beyond just e-hailing services; compounded by the fact that the gig economy in Malaysia is expected to grow by 55 percent every year. 

Currently, we have 2.2 million gig workers registered with the Malaysian Digital Economy Corporation (MDEC).

Towards this, I feel that more can be done to protect our gig workers and their income as their purchasing power is vital for the country’s economic recovery. I am hopeful that the government will revisit its stimulus package to beyond just conventional employment and e-hailing services.

I would also like to bring the government’s attention to migrant workers who are also suffering from the impact of the Covid-19 virus. Migrant workers are the first to go on unpaid leave or have lost their jobs ever since the MCO came into effect. I feel that the suggestion by the Malaysian Employers Federation (MEF) to send them back home to be replaced by Malaysians is uncalled for and is an unfair proposition.

On the contrary, the government should provide more aid to companies that employ migrant workers so that they will not end up on the streets without basic necessities like food. Let’s not forget, these workers are also valuable consumers and players in our economy. Meanwhile, a temporary freeze on the intake of foreign workers is a viable solution that the government should consider.

Most importantly, the government has not addressed the employability of our youths. I feel that more focus should be placed on the employability of our fresh graduates as they are the future leaders of our nation, as outlined in our Budget 2020 plan.

According to the Budget 2020 that was presented by our former finance minister Lim Guan Eng, employers were set to receive a hiring incentive up to RM300 a month for each new hire across two years. Now would be the best time to re-introduce such measures and incentives to employ our graduates apart from providing them with the necessary training for skills. 

I cannot stress more on the fact that the sustainability of the entire economic package for the months to come after the MCO, depends on the employability of our youths.

There is so much we can learn from our neighbour – Singapore – which economic stimulus package included solutions to assist employers to train fresh graduates because the Singapore government is looking at sustainable and viable solutions that would place the country at a competitive advantage once the economy recovers, post this pandemic.  

For the past few months, many have voiced their concerns regarding the stimulus package.

While the latest RM250 billion has protected some segments of the Malaysian demographic, I am hopeful that the government will take into further consideration the sustainable and differential aspects that I have humbly proposed; aiming to reduce the burden of our employers and employees - including migrant workers, gig workers and the youth, in the coming months.

There is also a need for the government to align their strategies to complement the Budget 2020, even if it is at a lower scale.

To end, I know that I don’t speak for myself when I say that it’s time for the prime minister to reconvene Parliament so that a bi-partisan solution could be initiated to fine-tune the stimulus package; ensuring that it is efficiently distributed to all those in need.

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M KULA SEGARAN is Ipoh Barat MP and former human resources minister. - Mkini