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Dr Subra: Govt's unemployment insurance scheme still being studied [ 19-06-2012 ]

KUALA LUMPUR: The Government's unemployment insurance scheme is not shelved because it has not even started. It is still being studied, says Human Resources Minister Datuk Seri Dr S. Subramaniam (pic).

Clarifying media reports that the scheme had been postponed, he said there was no issue of the scheme being stalled because the Government had yet to decide to go through with it.

 

"The Government decided to have a more in-depth study done. We appointed the International Labour Organisation in February this year to conduct the research," he told reporters at the Parliament lobby.

Dr Subramaniam (BN - Segamat) said the study would include getting feedback from stakeholders such as employers, small and medium sized enterprises and worker groups.

"I would like to reassure that we will take all views into consideration before we come to a conclusion," he said, adding that a preliminary report was expected to be completed by the end of this year.

However, he said even after the preliminary report is submitted, the Government would still require further studies done.

"Things are still at a very early stage," Dr Subramaniam said, adding that the Government had received many suggestions to address the plight of workers who were abruptly retrenched due to closure of companies, among other reasons.

Among the proposals are to expand the functions of the Employees Provident Fund and Social Security Organisation to address the Problem and to offer assistance via the Social Welfare Department and to set up a special government fund.

In December 2010, Prime Minister Datuk Seri Najib Tun Razakannounced the National Economic Action Council's recommendation to enhance the social safety net for employees through an unemployment insurance scheme as part of the New Economic Model.

However, the proposal met with resistance from small-and-medium businesses over the costs involved.

 

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