COMMENT | The human resources situation in Malaysia consists of complicated laws – some out dated, others merely flawed – that are in need of overhaul.
Since the third week of May, after the victory of Pakatan Harapan took hold, the discursive process within which policy is formulated began in the Human Resources Ministry to which I was appointed.
Since the appointment, my door has been open to all stakeholders so that they can discuss with me and my officers what needs to be done with respect to the labour situation in Malaysia. My stance may be summarised as: Come, let us reason together.
To date, there has not been a single stakeholder who has complained that the ministry is not open to discussion and consultation.
On September 27, when presenting the trophy for winners of the Human Resources Ministry's Productivity-Linked Wage System (PLWS), I aired the view that Malaysians workers abroad could contemplate returning home with its mounting success.
The PLWS was introduced in the 11th Malaysia Plan and was aimed at boosting the productivity of SMEs.This, in turn, would raise profits for employers and increase wages for employees.
The PLWS was targeted at 85,000 employers and some 3.9 million workers. It proved popular, that by August 84,249 employers covering 4.1 million employees became involved with the scheme.
This encouraging growth has emboldened our planners in raising the target of employers involved in PLWS to 87,000 by 2020.
For perspective, a study in 2013 revealed that SMEs, under the PLWS, experienced a 13 percent rise in productivity, a 10 percent rise in wages for employees, and a 15 percent rise in profits. And SMEs are integral to the national economy, in that they account for 36 percent of GDP, 18 percent of exports, and 65 percent of employment.
When these statistics are viewed against the range of proposed amendments to nine laws pertaining to human resources that will be tabled in the end-of-year session of Parliament, the scenario with respect to labour alters considerably.
True, the raising to RM1,050 of the minimum wage and its standardisation throughout the country does look like a paltry improvement, but that has been influenced by the dire financial situation of the country caused by the previous government's deliberate corruption and reckless extravagance.
The ministry's efforts at boosting productivity by reskilling and upskilling workers are happening at a quick pace.
Permatang Pauh MP Nurul Izzah Anwar, heads the programme to restructure technical, vocational, educational and training (TVET) institutes so that the courses offered meet the latest requirements of industry.
Reitred judge Hishamuddin Yunos, meanwhile, heads a 13-member committee that is studying the migrant labour issue so that the question is viewed holistically and solutions to its problems are sought and implemented with the overall aim of ultimately reducing our dependence.
Amendments to eight labour laws – the Industrial Relations Act 1967, Trade Unions Act 1959, Minimum Standard of Housing & Amenities Act 1990, Occupation Safety & Health Act 1994, Children and Young Person (Employment) Act 1966, Employment Act 1955, Sabah Labour Ordinance, Sarawak Labour Ordinance, and the Employees' Social Security Act 1969 – are being readied for tabling in Parliament, all of which will make major changes to the human resources environment in Malaysia.
For an inkling, consider what amendments to the Employees' Social Security Act will bring: 1.2 million housewives will qualify for benefits under changes to the scheme should misfortune strike them. Also, 2.5 million migrant workers will gain protection under proposed changes to this act.
This range of amendments will impact beneficently on the human resources situation in Malaysia. They will alter considerably for the better the labour situation in the country.
Overall, the employment situation would be much improved and our workers abroad – especially blue-collar workers – would be induced to think about returning home.
A cynical mindset would be tempted to ridicule this claim, but a journey to improve the socioeconomic situation of this country must begin with small steps, such as the PLWS, TVET restructuring, and a host of other changes to labour laws.
While the Harapan administration cannot and should not become prickly over criticism from within the stable of its own executive class, it should be noted that rash talk is cheap, especially on the part of those who do not bear any responsibility.
M KULASEGARAN is the human resources minister.
The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.
