PUTRAJAYA’S economic recovery plan for the short term must not rely on conventional methods like one-off cash handouts to pandemic-hit workers, said the Malaysian Trades Union Congress (MTUC).

The plan, to be unveiled this month, cannot separate unemployment and workers’ issues from economic recovery, said secretary-general J. Solomon in a statement.

MTUC suggested that the government instead plan a monthly allowance of RM1,000 for every poor worker, as well as enhance the wage subsidy scheme to cover those earning above RM4,000.

“The government must shed conventional methods such as dishing out one-off cash handouts, and instead, introduce measures that provide a sustainable safety net for workers,” said Solomon.

The RM1,000 allowance should be part of a safety net in place for B40 and M40 workers until the economy is back on track.

“Critics will be quick to claim that the government does not have the financial means,” said the statement.

“However, MTUC feels this is something the government can do, bearing in mind that oil prices are recovering and the government also has sizeable foreign reserves at its disposal.”

On enhancing the wage subsidy scheme so that workers earning above RM4,000 are covered, MTUC said this will help retain employees, especially locals.

The short-term recovery plan should also incorporate Emergency Employment Regulations (EER), which MTUC mooted to Muhyiddin Yassin after he took office in March.

The congress said the prime minister should see the urgent need to introduce EER, which prevents the retrenchment of workers for a specific period.

Putrajaya is also called on to heed the Malaysian Employers Federation’s estimate that up to two million workers may lose their jobs when the Raya festivities end, as well as warnings by the Statistics Department about worsening unemployment and recession by year-end.

MTUC suggested an extension by another six months of banks’ moratorium on housing and car loan repayments.

The moratorium, announced during the movement-control order, is currently from April to September.

“This move will greatly benefit thousands of workers who have either lost their jobs or been forced to take massive pay cuts, rendering them unable to service their loans during this difficult period,” said MTUC.

Making comparisons with other countries, it pointed out that Germany has spent 60% of its gross domestic product to assist workers and the economy, whereas Malaysia has used only 18%.

The government is urged to use some of its foreign reserves, something that is already being done by other nations, added MTUC. – June 3, 2020.