Kula urges gov't to set up task force on job security

CORONAVIRUS | In view of the current measures taken to circumvent the spread of the Covid-19 pandemic, former human resources minister M Kulasegaran has called for the setting up of a bipartisan national task force to secure business sustainability and job security for all Malaysians.

"Anxiety has begun to take shape when Malaysian employees not employed in essential services have been asked to take annual and unpaid leaves in the current period of restriction movement between March 18-31," said Kulasegaran in a statement today.

"The key issue currently is not just the number of cases of Covid-19 but the level of disruption to the Malaysian economy from containment measures and (the ability of) businesses to sustain their operations after the period of losses."

"If restrictions are taken disproportionately it could induce panic and weaken the economy even further," said the Ipoh Barat MP who served as Human Resources minister in the Pakatan Harapan government which fell last month.

"Fears of the impact of Covid- 19 on the global economy have rocked markets worldwide, plunging stock prices and bond yields. It is estimated by government officials in the United States that there could be a 20 percent unemployment rate in the US due to restriction of movement from the coronavirus," he said.

According to Kulasegaran, the unemployment rate both in the US and Malaysia currently was hovering around 3.4 percent before the impact of Covid-19 was felt.

He suggested that Malaysians could witness layoffs and terminations on a scale never experienced before and that a recession, and possibly even a depression, could be in the offing.

"The possibility of the creation of new jobs is now very slim and the Perikatan Nasional (PN) government must act quicker to comprehend the entire impact of the Covid -19 to businesses and jobs in the next 18 months.

"There is no mechanism to handle issues related to jobs and social security except by depending on announcements, circulars and existing mechanisms, he said.

Saying that Malaysia could be going down a slippery slope, Kulasegaran called for a task force comprising experts from the Human Resources Ministry, employers' organisations, unions, opposition politicians and related agencies.

"There should be a coordinated effort to ensure that job security is secured and contributes to economic stability in the long run. A win-win situation between employers and employees should be worked out," he said, calling for such a task force to be established as quickly as possible.

"Malaysia must also come up with a better subsidy plan for those who are facing unemployment," he added.

MTUC calls for new Rakyat Livelihood Fund

Meanwhile, Malaysian Trades Union Congress (MTUC) secretary-general J Solomon (photo, below) called for the PN government to convert the Economic Stimulus Package to a Rakyat Livelihood Fund to safeguard the livelihood of all workers in Malaysia, in the formal, informal, gig economy, sole proprietorship and small and medium enterprises.

"Based on the increase in the number of Covid-19 positive cases and the spike in the death toll in Malaysia, MTUC expects the government to enhance and extend the movement control order (MRO) beyond March 31," he said today.

"We remain confident that with the involvement of the military and the heightened public awareness on the need to stay indoors, the pandemic will eventually be contained, but not before it causes further havoc on the livelihood of the rakyat," he added.

Solomon said that the MTUC is urging the government to move away from merely enhancing the RM20 billion economic stimulus package by taking a bold approach to initiate a multi-billion ringgit Rakyat Livelihood Fund that directly benefits the rakyat.

"Its long term focus, which will go beyond the expiry of the restricted movement order, will be to ensure the public, especially B40 and M40 workers as well as SME have access to quality health care and an income that is continuous and sustainable to support their families.

"By pouring billions of ringgit in specific aid programmes through the proposed Rakyat Livelihood Fund, the government will save the rakyat from incurring more household debts and instead enable them to put food on the table and a roof over their heads as the national economy regains its footing," said Solomon. - Mkini