Amended Eis Act Delivers Long Term Value To Labour Market Says Nccim

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National Chamber of Commerce and Industry of Malaysia says the improvements to the law will accelerate labour-market reintegration and address skills gaps.
NCCIM president N Gobalakrishnan said Malaysia’s move to strengthen labour-market data through structured vacancy notifications is in line with global trends. (Bernama pic)PETALING JAYA: The amendments to the Employment Insurance System (EIS) Act will deliver long-term value and strengthen the country’s labour-market ecosystem, says the National Chamber of Commerce and Industry of Malaysia (NCCIM)
NCCIM president N Gobalakrishnan said the amendments introduced significant improvements to worker benefits, including higher early re-employment allowances, increased training support, and a new mobility allowance.
“These measures will help accelerate labour-market reintegration and address skills gaps – an important step towards building a more resilient workforce,” he said in a statement.
Last week, the Dewan Rakyat passed amendments to the EIS Act, aimed at expanding support for Social Security Organisation (Perkeso) contributors who become unemployed and strengthening the governance of the insurance scheme.
The amendments also mandate employers to report job vacancies to Perkeso, a move meant to improve job matching, labour market data, and policy-making.
Perkeso contributors who lose their jobs will also be entitled to protection and training support worth up to RM25,000, according to the amended law.
Perkeso has clarified that it will implement a moratorium of up to two years before fully enforcing the new requirements, giving employers, especially small and medium-sized enterprises, adequate time to adapt.
Gobalakrishnan said Malaysia’s move to strengthen labour-market data through employer vacancy notifications was consistent with international practice.
He cited the example of India and its Employment Exchanges (Compulsory Notification of Vacancies) Act 1959, which requires employers in certain sectors to notify the government of vacancies and provide updates when posts are filled.
“India’s experience shows that such systems, when implemented in phased rollouts and supported by employer education, contribute to improved labour-market visibility, better job-matching outcomes, and more effective government employment initiatives,” he said.
Gobalakrishnan said Malaysia’s moratorium and flexible exemptions placed the country in line with global best practices, while ensuring that businesses have sufficient time to adapt for a smoother transition.
“We believe the amendments to the EIS Act, combined with a phased and well-supported rollout, will strengthen Malaysia’s employment ecosystem and benefit employers, workers, and the broader economy.” - FMT

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