INDUSTRY players are divided over Putrajaya’s promise to generate 500,000 new jobs next year through the employment generation guarantee scheme (JanaKerja).

The Malaysian Trades Union Congress (MTUC) finds the initiative unrealistic, while the Malaysian Employers’ Federation (MEF) said that the target is achievable.

MTUC president Abdul Halim Mansor said that the promise is unrealistic, given the high unemployment rate in the country.

“We have (almost) one million people who are jobless at the moment. Do you think that can happen?”

In addition to those who are out of jobs, there will also be fresh graduates and school leavers joining the throng of prospective job hunters.

According to the Statistics Department, Malaysia’s unemployment rate increased to 4.7% in October.

The number of unemployed rose by 1.5% to 748,200 in October compared with September.

Halim said some companies have yet to run their operations at full capacity because of the various stages of the movement-control order (MCO), therefore there will be fewer opportunities to create new jobs.

The government could instead deport undocumented migrants and fill the vacant position with Malaysians, he said.

However, MFE executive director Shamsuddin Bardan is optimistic that the target is within reach if economic conditions improve.

Employers will be inclined to hire if economic conditions are favourable, he said.

“With the amount of incentives given, it would encourage more employers to create more employment and also the government is trying to do their part in giving the unemployed a chance to work on short-term contracts with government agencies and government-linked companies,” he said.

The challenging economic conditions are expected to persist until the first half of next year, said Shamsuddin.

Consumer confidence, which has taken a hit with the CMCO, remains a challenge for firms.

Apart from that, he said there is a need to reopen borders to reinvigorate the tourism sector.

Meanwhile, economist Dr Muhammed Abdul Khalid said one way to keep firms sustainable and protect jobs is to extend the wage-subsidy programme and making it available to all sectors.

“So, you allow firms to be able to survive because they employ people. At the same time, you want people to also have cash so that they can spend and firms can do well,” said the managing director of DM Analytics.

Finance Minister Tengku Zafrul Tengku Abdul Aziz said while tabling Budget 2021 that the government will allocate RM3.7 billion under the JanaKerja scheme.

The scheme, which will include various upskilling and training programmes, aims to create 500,000 jobs next year. – December 14, 2020.