Our people are the engines of our economy. With the Education NKEA and NKRA focused on our future generations, we must now lay the foundations in place that will allows us to maximize the human talent this country so richly possesses. The Human Capital Development SRI is a critical enabler for us to transform the workplace as well as the workforce.
NEAC policy recommendations are categorised into two broad themes:
|Modernise Labour Legislation
- Ensure reduced cost of labour management to business
- Ensure effective worker protection
|Strengthen Human Resources Management in SMEs
- Identify centres/ organizations that can provide HR management support for SMEs to enhance quality and productivity
- Provide incentives to SMEs that adopt specific HR practices consistent with international standards
|Enhance the Labour Safety Net by Introducing Unemployment Insurance
- Unemployment insurance scheme supported by up-skilling and retraining programmes, and upgraded employment services
|Focus on Up-skilling and Upgrading the Workforce
- Strengthen logistical links between industry needs and outputs of training/ vocational/ tertiary entities to improve training relevance
- Involve industry in curriculum development and teaching
|Undertake a Labour Market Forecast and Survey Programme
- A framework to establish a centralised labour market institute to be defined and adopted
|Leverage Women's Talents to Raise Productivity
- Adopt policies to leverage women's talents to raise productivity
- Promote participation of women in public and private sector
The Government is committed in streamlining and updating our labour legislation by bringing it into the 21st century. We will begin this process by making the necessary amendments to a wide ranging set of existing legislation. These amendments serve to provide clarity, ensure the appropriate level of enforcement in order to provide fair treatment of workers without protecting obsolete jobs whilst reducing the cost of labour management in business. The Government has had a series of intense syndications with relevant parties across the spectrum and believe that alignment is critical for us to move forward. If we are unable to view the forest from the trees, we will never be able to take the bold but necessary steps to modernize our labour legislation.
Extending the retirement age, adopting a minimum wage as well as the introduction of unemployment insurance are some of the steps that the government will take to guide Malaysia in the direction of maintaining a high income economy that is sustainable and inclusive. These proposals will be studied much further with a clear transition programme in place to ensure that businesses are not burdened.
The government recognizes that we must continue to leverage on women's' talent in the work force by restructuring flexi-work arrangements and expanding student placement programs for female final year students within the private sector through a pilot programme initiated in 2012. Recently, the Prime Minister announced that 30% of decision making positions will be held by women by 2016.
SMEs are critical to the economy but they need support in managing their talent and workforce. The HRDF (Human Resources Development Fund) will be enhanced to support SMEs by providing them the opportunities to adopt HR best practices through quality and cost effective solutions and programmes enabling SMEs to attract and retain a high quality and productive workforce.
The Government will also establish the Institute of Labour Market Information & Analysis (ILMIA). This institute will provide in-depth analysis on the labour market to support the public sector through the formulation of policy & decisions. The analysis and reports will also support the private sector by providing a comprehensive analysis and forecast of workforce demand and supply by industry & sub sector.