Malaysia allocates RM$3.8 billion to extension of wage subsidy scheme

The Malaysian government has extended its wage subsidy programme (PSU) to be implemented for four months from August 1st, with an allocation of RM$3.8 billion (US$0.91 billion) to help businesses continue their operations and retain employees, said Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz.

“The programme has targeted 242,000 employers with about 2.5 million employees nationwide,” he added, and would maintain the rate of RM600 (US$143) per employee. 

The scheme would be open to all economic sectors in the first two months, following which it would only apply to those in the “negative” list.

“The improvement made [to PSU 4.0] is that there is no longer a salary limit requirement compared with a salary cap of RM$4,000 (US$955) and below under the previous PSU assistance,” the minister said. 

The government has already spent over RM$15 billion (US$3.58 billion) under this scheme to save over 2.8 million jobs, he said. 

READ: Malaysian business and trade groups warn of looming mass unemployment

Previously, the entrepreneur development and cooperatives ministry highlighted that in a recent survey that around 580,000 businesses, or 49% of the micro-small-and-medium-sized enterprises sector, could collapse by October if operations do not resume by then.