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Pemulih move on the right track

THE extension of lockdown from June 28 onwards continue to raise concerns for the low-income groups, small- and -medium enterprises (SMEs) and youths.

The latest April figure shows 742,700 individuals remained unemployed despite the decrease of 0.4 percentage point in the unemployment rate to 4.6 per cent.

As low-income households continue to be affected by unemployment and lower earnings over the past year, Prime Minister Tan Sri Muhyiddin Yassin announced an additional RM150 billion Pemulih (Pakej Perlindungan Rakyat dan Pemulihan Ekonomi) stimulus package, assisting Malaysians to weather the storm.

For businesses, a recent SME Association of Malaysia survey found that only 8.6 per cent of SMEs said "business was as usual".

Anecdotal evidence seems to suggest that many young people are struggling to secure a job with decent pay and benefits.

Since costs are additionally incurred in training new hires with no working experience, employers, in general, are not motivated or incentivised to hire fresh graduates under the current climate.

Nonetheless, Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz announced that his ministry intends to create 500,000 new job opportunities with the setting up of the National Employment Council alongside the "Employment Creation Guarantee" scheme.

Under the Penjana Kerjaya 2.0 (Hiring Incentive and Training Programme), 137,593 individuals have been employed between January and June.

This is reinforced in the Pemulih announcement where the government will allocate RM125 million through the Human Resource Development Corporation to implement "Place and Train" initiatives under the Janapreneur programme for school leavers and graduates.

It is hoped that more young people would be aware and take advantage of such opportunities.

Another issue of increasing concern is that more Malaysians are suffering from depression.

Statistics from Jan 1 to June 18 revealed that 89.4 per cent of the calls were related to mental health issues that required psychological support and counselling.

Subsequently, the government has agreed to allocate RM15 million to non-governmental organisations in assisting the government to address social issues such as mental health, homelessness and other social issues.

Therefore, the government should continue to assist and aid the rakyat — businesses and households — to withstand the economic shock. Towards this end, EMIR Research urges the government to:

* Consult with industry and business associations regularly before announcing additional restrictions or relaxations in the standard operating procedures (SOP), giving respective industries time to react and plan.

* Keep SOP simple with guiding principles on sanitisation, double face mask-wearing, physical distancing and reduced movement. Clear communication among different government ministries and agencies would help businesses and individuals grasp the SOP.

* Organise door-to-door visits to understand the needs and problems of the citizens, particularly among the low-income groups, in addition to providing psychological first aid-based helplines for them to express their psychosocial concerns.

* Expedite the provision of 150,000 laptops under the 2021 Budget, ensuring all children are able to follow the education syllabus despite learning barriers during school closure.

* Create more high-skilled and high-income job opportunities under initiatives to ensure more young Malaysians can secure jobs that match their academic qualifications.

* Develop a targeted social welfare assistance system with single cross-agency Social Protection Database, ensuring the stimulus packages introduced in the country will reach the vulnerable.

With the introduction of an additional RM150 billion aid under Pemulih, the government is on the right track in ensuring that aid and stimulus packages will continue to accompany the continuation of lockdown measures.

The writer is Research Analyst at EMIR Research, an independent think tank focused on strategic policy recommendations based on rigorous research

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