After being debated by 14 members of the Parliament, the Employment Insurance System (EIS) Bill 2017 was approved by the Dewan Rakyat on Thursday (Oct 26). Passed with some amendments, the bill aims to provide Malaysian workers who lose their jobs with temporary financial support and assistance.

Human Resources Minister Datuk Seri Richard Riot during the debate said that with the proposed insurance system bill, workers who lost their jobs could gain benefits from appropriate job training that will help them return to work. Those who are eligible for the EIS include employees between the ages of 40 and 50.

Earlier, when tabling the bill for a second reading, Mr Riot said that the insurance system would see a 0.4 percent contribution from the insured pay, which consists of 0.2 percent each from both employers and employees. Additionally, he said that it was crucial for the government to support and assist workers who lost their occupations, especially during economic downturns or recessions.

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As a trading nation, Malaysia was increasingly tied with global economic chain. According to Mr Riot, this circumstance has made it inevitable for the country to the risk of exposure with the impact of economic downturn.

“In 2015, more than 44,000 people lost their jobs, among others, due to automation measures in the financial sector, corporate restructuring and falling crude oil prices in world markets. In 2016, more than 38,000 people lost their jobs, with the majority being in retail, manufacturing and quarrying,” he said.

On the other hand, Mr Riot said that for employers, the implementation of EIS would help increase the company’s productivity through employees who had undergone skills and re-training programmes. Furthermore, it will reduce the pressure on them if there was a need to reduce costs, downsize business operations, or in case of bankruptcy, Bernama reports.

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