Construction work for semi-detached single-storey houses at Jalan Batu Kawah-Matang had to stop due to the MCO.
KUCHING: When the Movement Control Order (MCO) was enforced in March, Prime Minister Tan Sri Muhyiddin Yassin wasted no time to make sure that all Malaysians were taken care of during the Covid-19 pandemic.
He swiftly launched the RM250 billion Prihatin Rakyat Economic Stimulus Package (Prihatin) on March 27 for the benefit of all segments of the people to cushion the negative economic impact of the pandemic.
Under the package, financial assistance was also extended to employers through the Employment Retention Programme (ERP), now combined under the Wage Subsidy Programme (WSP).
The immediate financial assistance managed by the Social Security Organisation (Socso) provides for employees instructed to take unpaid leave by their employers, who are economically affected by Covid-19.
Up to this month, 37,566 employers have applied for the ERP involving 337,569 workers. Approved applications will see each employee receiving financial assistance of RM600 a month.
Sim Kiang Chiok
Sim Swee Yong Development and Construction Sdn Bhd director Sim Kiang Chiok, whose company had to shut down when the MCO came into force on March 18, has applied for the aid.
“All my business activities had to be closed including my showroom and shopfront. Similarly, at our construction site, we had to stop all works and the only staff on duty were a few security workers at the site.
“It was very frustrating and worrisome when the MCO was extended for three times until it was replaced with the Conditional Movement Control Order (CMCO) on May 4 and then some relaxation was given for works to resume on May 12 in Sarawak,” he said.
As most sectors were prohibited from operating during the MCO, Sim said his employees had to stay at home and no work was carried out throughout the period.
“No work was allowed, which means that we cannot conduct sales either. All other firms such as our legal firms that drafted agreements for our company were also closed.
“Even government departments such as the Land and Survey Department were closed so we could not carry out any transfer of land titles and since the stamp duty office was also closed, no agreement could be legalised and recorded officially,” he said.
Though his company faced difficulties during the MCO, Sim expressed his gratitude to the government for introducing the economic stimulus packages to protect the welfare of the people and support businesses in the country.
“The ERP, for instance, has given us some relief in helping us in the payroll of some of our staff, but for staff who earn more than RM4,000 per month, it is very burdensome to us as there are no wage subsidies. But at least we don’t have to retrench any staff and the assistance will last till June this year,” he said, adding that nine of his employees benefitted from the programme.
He also welcomed the government’s decision to extend the WSP under the short-term Economic Recovery Plan (Penjana) by another three months.
“The extension of this assistance set at RM600 per worker per month for another three months will also help us in keeping our workforce.
“This means that the WSP is available for six months in total and I hope that it will be enough till our economy can recover from the pandemic, even though all the economic indicators have shown that we might need a longer time to recover,” he said.
Sim hopes that the government can keep to the present wage subsidy assistance where staggered and higher assistance will be provided to companies. Those with a workforce of less than 75 workers will be provided with a wage subsidy of RM1,200 per month, RM800 for companies with 75 to 200 workers, and RM600 for companies with 200 workers and above.
“I would like to commend the government for this inclusive assistance for all companies during this Covid-19 pandemic,” he added.
As Malaysia has now transitioned from MCO to CMCO and now Recovery Movement Control Order (RMCO), the number of ERP applications has reduced with economic sectors gradually opening and more employees returning to work.
Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz announced in the eighth Laksana Report that the government has decided to consolidate the ERP into the WSP, which has now been expanded under Penjana.
From June 15 onwards, the WSP will allow employers to apply for the wage subsidy for their workers who have been put on unpaid leave. The wage subsidies are also aimed at helping workers in the tourism and other sectors prohibited from operating during the CMCO.
As of June 19, RM4.89 billion had been approved for RM303,596 employers benefiting more than 2.4 million employees.
All ERP applications submitted before June 15 will be processed by Socso accordingly.
Employers who wish to apply for the assistance are now advised to apply for the WSP, which is open for applications until Sept 30.
WSP applications for employers issuing unpaid leave will commence on July 1.