UNIVERSITI KUALA

LUMPUR BUSINESS SCHOOL

LECTURER’S NAME : WAN MUHD NASRUL HADI BIN WAN ABDUL AZIZ
GROUP : IF10
GROUP ASSIGNMENT TOPIC : 2020 BUDGET

NAME ID
FARAHZATUL IZZAH BT OMAR 62211118073
FARZANA ZULAIKHA BT AWALLUDIN 62211118076
WAN AZRIN MUNIRAH BT MIOR ZULKIFLI 62211118471
NORHASANAH BT ABU BAKAR 62211118324
NORHAYATI BT AHMAD SHUKRI 62211219410
Wage incentive for unemployed people

In this era, even though we have various types of sectors of business that are growing
but still we have a lot of unemployed Malaysians. There are at least half a million Malaysians
that are unemployed in 2018. High number of graduates also have problem in securing a job.
There were at least roughly 140,000 of Malaysians that unemployed are graduates. High
number of graduates hard to find job because some of them do not have any working
experience at all . Most Malaysian are unemployed because Malaysia has depended on foreign
workers. Government has spend money for the unemployed graduates that is:

 The government will be doling out a wage incentive of RM500 per month, over 2
years to unemployed graduates (for more than 12 months) who gets a job.

Other than graduates,there were also many people who are unemployed because of
competition. The government not only will help the graduates but government also introduced
a way to enhance job opportunities in Malaysia by malaysians@work. Malaysians@Work is
actually an initiative that introduced specially to create better employment opportunities for
youth and women. It consists of few programs which is Women@Work. It is for women who
have stopped working for a year or more and between 30-50 years-old. The wage incentive
for returning women workers is RM500 per month for two years, and a corresponding hiring
incentive for employees up to RM300 per month for 2 years. On top of the above, the current
income tax exemption for women who return to work after a career break be extended for
another 4 years until 2023.Third is Locals@Work that is a hiring cost equalization programmed.
The wage incentive for Malaysians who are hired to replace foreign workers is at either RM350
or RM500 per month, depending on the sectors, for a duration of two 2 years, and
corresponding hiring incentive for employers up to RM250 per month for 2 years and
lastly,apprentice@work which is a TVET incentive programmed to encourage more youth to
enter TVET courses, in the form of additional RM100 per month of existing allowance for
trainees on apprenticeships.

In our opinion, all Malaysians who are unemployed will get benefited from the budget
2020 fund and incentive that are introduced by the government. There will no one who will left
behind so wealth inequality could be stabilized since unemployed people get support from the
government. The Wage incentive for the unemployed graduates will at least ensure them to
have source of income to pay for their daily expenses before they get a job since it is really
hard to find a job nowadays. Our country really needs to improve on the employment policy
by reducing the employment of foreign workers so more Malaysian will be employed and
secure a job. Companies also have to employ fresh graduates even though if they have no
experience in any working field.
 The government will continue to emphasize learning opportunities under the People’s
Trust Council (MARA) and leadership Foundation for Bumiputera Education (Foundation
Lead). MARA’s target is focused on Bumiputera low income and living in rural areas with
providing educational through institutions such as the College MARA Elementary Science.
MARA College of Technology and University Kuala Lumpur(UNIKL).Students will receive fund
from government for their education which is under MARA. MARA is a well-known agency that
provide scholarships for students.

 By 2020, the government will allocates a total of RM1.3 billion to institutions

education under MARA, and RM2 billion for funded a loan for 50 thousand
student. In addition, RM192 million was also allocated for the program
professional certification under the Leading Foundation.

MARA will give fund for students to help them live a better life since most students always
have difficulties in surviving their life especially for those who studies in city area. As we know,
in city area the standard of living is high. Students who comes from a low-income family will
have difficulties to pursue their study and because of that few of them choose to work instead
of studying. MARA should focus on students who have a low income background and students
who study in city area because they need more money than those who study in rural area
because the expenses of house rental, food and transportation would be lower. MARA should
loosen their policies on the limit of parent’s income for the student to receive both education
and self-living allowance. This is because for current conditions to apply the loan, parent’s
income must be under RM8k to obtain both education and self-living loan. MARA should
change it to RM10k or higher because total income of RM8k are actually can be consider as
an average family when it comes to live in city.

In our opinion, education loan only is not enough for students since it only covers the tuition
fees. Students that study in private institution need more money to pay for their daily expenses.
The loan will help the students to pay for their transportation, foods and also to pay for their
house rental expenses. MARA can use the fund to give more self-living loan for the students
that need more money than other students by checking their place of their university either at
rural or urban area. MARA should help the students who work while studying to support their
life using their own money because it will make them less concentrate on studies and slowly
reduce their interest in studying.