The Human Resources Ministry (KESUMA) has proposed four key legislative amendments aimed at strengthening Malaysia’s labour framework and enhancing the country’s Technical and Vocational Education and Training (TVET) ecosystem, with the reforms expected to benefit millions of workers, students and young people nationwide.
In a statement, the Ministry said the amendments were designed to widen social protection coverage, reinforce employment safety nets, improve national skills standards and expand access to sustainable skills‐training financing.
KESUMA said the proposed reforms involve amendments to four Acts: the Social Security Act 1969 (Act 4), the Employment Insurance System Act 2017 (Act 800), the National Skills Development Act 2006 (Act 652) and the Skills Development Fund Act 2004 (Act 640).
24/7 Protection for Workers
Under the amendment to Act 4, the Ministry plans to introduce the LINDUNG 24/7 scheme, which will extend comprehensive social security protection to workers beyond regular working hours. The initiative is expected to cover about 10 million workers in the formal sector.
Stronger Support for the Unemployed
Amendments to Act 800 will enhance assistance for workers who lose their jobs. This includes increased financial benefits, improved employment services and additional support for job relocation to facilitate re‐entry into the workforce.
Industry‐Responsive Skills Standards
For Act 652, KESUMA proposes strengthening national skills standards to better align with industry needs. The amendment will introduce three new categories under the Malaysian Skills Certificate (SKM), a measure aimed at boosting the quality of TVET programmes and enhancing youth employability.
Improved Access to Skills Financing
Meanwhile, amendments to Act 640 will ensure more efficient and accessible financing for upskilling and reskilling initiatives, providing wider opportunities for individuals to participate in skills development programmes.
KESUMA said the second and third readings of the four amendment bills are expected to be tabled in early December 2025. These reforms, it added, reflect the Ministry’s commitment to establishing a more inclusive and resilient labour ecosystem, and preparing Malaysian workers and youth to meet the evolving demands of future industries.
-HR HUB
