Employment insurance scheme not so soon

richard-riotKUALA LUMPUR: More research is required before any employment insurance scheme can be implemented in the country, according to Human Resources Minister Richard Riot.

Speaking at a press conference in conjunction with National Career Day 2016 here today, Riot said although the ministry had been studying the scheme for the past two years, more input was needed.

“I will be flying to Korea and Japan this Sunday to conduct more studies on the mechanism of the scheme,” he said.

He added that his officers had also gone to countries that had implemented the scheme to see how well it was working.

The employment insurance scheme is to help retrenched workers through temporary financial aid, reskilling and upskilling.

Riot said he had presented findings of the study carried out to date, to the National Economic Council headed by Prime Minister Najib Razak last Thursday.

“The council has asked us to thoroughly study the input given and to add new input to what we had presented.”

He was responding to PSM Secretary-General A Sivarajan’s call yesterday for the human resources minister to set up the retrenchment fund quickly as many companies were closing down.

He said the minister had to pay special attention to these cases, adding that he had to tackle the problem now

To prove that decisive action was necessary now, Sivarajan said in just the past two months alone, 400 workers were retrenched by two companies – namely High-5 Consolidated Bhd and Paragon Converters Sdn Bhd.

PSM is gathering 20,000 signatures nationwide for a petition to pressure the government to hasten the bill on the employment insurance scheme.

PSM Treasurer Soh Sook Hwa said the signatures would be sent directly to the Human Resources Ministry.