The inaugural Budget 2021 delivered by the Perikatan Nasional government appeared to be a reflection of them trying their best to support the vulnerable groups affected by the unprecedented Covid-19 pandemic through the announced initiatives especially for youths. But for some initiatives, they still need enhancements.
EMIR Research released two parts of preliminary commentaries for the Budget on 6 November but subsequently, individual opinion pieces would be released to provide in-depth insights.
Following are the main government initiatives dedicated for the youths:
• Private employers are given incentive of up to RM1,000 per month for up to 3 months for new graduates to join apprenticeship programme and the employers can claim a grant of up to RM4,000 for training programmes for the apprentices.
• Hiring incentives (PenjanaKerjaya).
• Reskilling and upskilling programmes with fund allocations provided to several involving government
agencies.
• Introduction of short-term employment programme (MySTEP);
• Cash assistance ranging between RM350 and RM1,200 through Bantuan Prihatin Rakyat (BPR) for B40
and M40 households as well as singles;
• Monthly welfare aid of RM150 each, under Department of Social Welfare (JKM) for B40 children aged 7-
18.
• Measures to increase home ownership for first-time house buyers such as full stamp duty exemption until
year 2025 and a Rent-to-Own (RTO) scheme.
• E-wallet credit worth RM50 for youth aged 18 to 20 via eBelia programme.
• A contribution worth RM150 million from GLCs and GLICs to Tabung Cerdik for provision of laptops to
150,000 in schools (a pilot project)
• An allocation of RM100 million for laptop loan scheme for PTPTN borrowers.
• Empowerment of TVET with an allocation of RM6 billion.
• Telecommunication credit of RM180 to B40 Malaysians through Jaringan Prihatin Programme in 1Q21.
• Extension of Wage Subsidy Programme (WSP) for another 3 months for the hardest-hit sectors such as
tourism for employees earning RM4,000 and below.
It is positive to see that the proposals written in my previous article prior to the budget titled Budget 2021 – Youth’s wishlist to endure the crisis namely the extension of hiring and training incentives, RTO scheme for affordable houses and improvement of digital infrastructure for education access were considered for the Budget.
Nonetheless, there are several measures which are missed out or they are not up to the expected level.
For instance, findings from EMIR Research’s focus group discussion (FGD) in July involving youths revealed that students generally find it hard to sustain their living (financial anxiety), even those with scholarships due to insufficient funds to commit to their daily expenses while studying.
Firstly, government’s cash assistance for the underprivileged tertiary-education level students would help to cover at least their necessary living expenses alongside giving them more time to focus on their studies.
In the first RM250 billion stimulus package Prihatin, there was a one-off cash aid worth RM200 for higher-education students but sadly, it ended there.
Although Budget 2021 revealed that the B40 children who will be receiving JKM’s monthly welfare aid include the youths, it is only a small share of them considering the eligibility is only up to the 18-year-olds.
What about those aged beyond 18 attending university with no jobs and they are in the B40 group or partly M40 students who could be in an unfortunate situation too?
Perhaps, the government can consider distributing another round of cash assistance of RM200 to RM300 for the university students in these income groups.
This allocation would indeed be timely as the Conditional Movement Order (CMCO) had been extended to another 4 weeks until 6 December, thus, forcing students to continue studying at home so they will need to buy books and other learning materials.
Secondly, the RM50 e-wallet credit announced for youth seems to be limited in coverage as it is only for those aged 18 to 20 when youth population who are leveraging e-wallet to commit to their daily expenses accounts for more than that.
Therefore, it is hoped that the government can consider increasing the allocation for eBelia programme to provide e-wallet credits to a bigger population of youth. As spoken by the Finance Minister during the Budget speech, “youths play an important role as pioneers and consumers in adopting the latest technology.”
Finally, although the government tackles the issue of unemployment amongst youth in the Budget but initiative to address underemployment appear to be limited to sectors with high reliance on foreign workers – a special incentive of 60 per cent of monthly salary in which 40 per cent will be channelled to the employers while 20 per cent will be the top-up to local workers’ salaries replacing foreign workers.
What about the other sectors that are not highly dependent on foreign workers which are concentrated by youths with high qualification levels but they are underpaid?
It is the matter of matching the industry demand and the supply of graduates into the labour market, hence, the necessity for education and training institutions to cooperate effectively with the industry players.
In the midst of the unprecedented crisis, everyone is trying their best to survive, so do the youths, thus, the urgent call to realise these proposals.
Sofea Azahar is Research Analyst at EMIR Research, a think tank focused on strategic policy recommendations based on rigorous research.
** The views and opinions expressed in this article are those of the author(s) and do not necessarily reflect the position of Astro AWANI.
Sofea Azahar
Mon Nov 09 2020
In the midst of the unprecedented crisis, everyone is trying their best to survive, so do the youths, thus, the urgent call to realise these proposals. - File image via www.pexel.com
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.
NFOF will be operational in November 2024 with funding of RM1 bil
PM Anwar Ibrahim said NFOF will support venture capital fund managers to invest in startup companies with RM300 million set aside for 2025.
Minimum wage to increase to RM1,700 effective Feb 1, 2025
The Progressive Wage Policy would be fully enforced next year with an allocation of RM200 million, benefiting 50,000 workers.
Bursa Malaysia ends higher on Budget 2025 optimism
The benchmark index, which opened 1.85 points higher at 1,643.29, moved between 1,641.71 and 1,649.31 throughout the trading session.
Five important aspects relating to people’s lives in Budget 2025 - PM
The focus is on driving the MADANI Economy, speeding reforms, cutting red tape, raising wages, and tackling the cost of living.
Economic outlook: Govt plans to leverage, expand existing city transit system
The expansion aims to provide a more efficient and reliable public transportation network, reduce congestion, and improve accessibility.
Economic outlook: Budget 2025 to lay foundation for a digital-driven economy
The report said Budget 2025 will entail efforts to position Kuala Lumpur as a top 20 global startup hub by 2030 through the KL20 initiative.
Economic outlook: Corruption and lack of accountability hinder economic progress
Special Cabinet Committee on National governance is established to curb corruption, law reforms to modernise outdate regulations, MoF said.
National Wages Consultative Council will be strengthened
The govt will also incentivise hiring women returning from career breaks, offer job matching and improve care services facilities.
Economic outlook: Ensuring 11 years of compulsory education for all children
Budget 2025 will continue prioritising upskilling and retraining initiatives to equip workers with the latest skill sets necessary.
Consolidated public sector projected to record lower surplus of RM41.7 bil 2024
The MoF said the consolidated general government revenue is estimated to increase slightly to RM384.7 billion in 2024.
PM announces substantial Budget 2025 hastening Malaysia to become Asian economic powerhouse
Datuk Seri Anwar Ibrahim said it would create jobs and also tackle financial leakages to enhance public spending efficiency.