The proposed unemployment insurance scheme is "neither postponed nor shelved", asserted Human Resources Minister S Subramaniam, as no decision has been made on this.

NONE Describing it as merely one of the proposals to tackle problems faced by workers who are left in the lurch when companies shut down operations overnight, Subramaniam also said no parties will be "unduly" burdened.

The minister was referring to reports that the scheme has been shelved until the government enforces the minimum wage system.

"We have had discussions with various parties over the past two years and there have been many suggestions. Among (these) is to widen the scope of the Employees Provident Fund and the Social Security Organisation, (or) that the Welfare Department deals with (the situation),” he told a press conference at the Parliament lobby today.

"Another proposal was for the government  to set up a special fund, and there are those who suggested a hybrid system using various models.”

Subramaniam said the ministry has engaged experts from the International Labour Organisation to participate in the feasibility study.

labour day 2003 The Malaysian Insider had reported that the government is in the midst of drafting a law to introduce the scheme by September, but that the small- and medium- enterprises (SME) sector has rejected this as employers cannot bear 40 percent of the cost.

"We are (fully) aware of the situation. We also don't want to burden employers, so we will find a way that best addresses this issue,” Subramaniam said.

"I think the (SME) fear is justified and all the more reason the government will be more careful in implementing anything that will further (add to) their costs.”

Subramaniam's clarification also puts to rest MCA president Dr Chua Soi Lek's concern.

During the National Economic Council meeting yesterday, he had said there should be a re-think of the proposal after the minimum wage scheme is introduced. 

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