Who is eligible for the Short-Term Economic Recovery Plan?

Employers who have registered with the following are eligible for the plan: 1. Suruhanjaya Syarikat Malaysia (SSM) 2. Jabatan Pendaftaran Pertubuhan Malaysia (ROS) 3. Pendaftaran Perniagaan (ROB) 4. Local Authority or any other authorities before 1 June 2020 5. Perkeso before 1 June 2020

What requirement must employers fulfill before they can apply for the Short-Term Economic Recovery Plan incentives?

Employers are required to register SOCSO and EIS for their employees before they can apply for the incentives.

What are the documents required for the application of Short-Term Economic Recovery Plan incentives?

The following documents are required for the application of incentives: 1. Employer’s Bank Account Details (First page of bank statement with name of employer, bank account number and bank) 2. Business Registration Number

Will employers continue to receive the Short-Term Economic Recovery Plan incentives once an employee has resigned or been terminated?

The employers will no longer receive the incentives once the employee has resigned or been terminated.

What is Malaysia’s Short-Term Economic Recovery Plan (ERP)?

On 5 June 2020, the Malaysian Prime Minister announced the Short-Term Economic Recovery Plan (ERP), also known as Penjana Kerjaya. This plan was launched against a bleak global economic outlook to accelerate enterprises and boost confidence in the Malaysian economy. The government has introduced various financial incentives that are given to employers who hire candidates from the following categories:

School-leavers and fresh graduates
Unemployed persons
Disabled persons

Many employers have been enquiring on how to apply for the Short-Term Economic Recovery Plan incentives. Therefore, we have prepared a quick summary below that answers the FAQs released by the Malaysian Government.

What is Malaysia’s Short-Term Economic Recovery Plan (ERP)?
Available incentives for employers under Short-Term ERP
Eligibility to apply for the Short-Term ERP
Employers’ ability to claim incentives
How to apply for Short-Term ERP incentives?
Documents required for application
Disbursement of Short-Term ERP incentives
Continuation of incentives received by employers

1. What is Malaysia’s Short-Term Economic Recovery Plan?

Some of the key focus areas of the Short-Term Economic Recovery Plan include matching the needs of employers who are seeking eligible candidates to hire whilst helping job seekers to secure employment.

2. What are the available incentives for employers under the Short-Term Economic Recovery Plan?

#MyApprentice

Incentives are given to employers on hiring school leavers and fresh graduates as apprentices.

#HireMalaysia

Incentives are given for hiring the following groups:

Malaysian employees below 40 years old;
Malaysian employees above 40 years old; and
Vulnerable Malaysian employees who are disabled and/or those under “Return to Work” Scheme under PERKESO

3. Who is eligible to apply for the Short-Term Economic Recovery Plan?

Employers who have registered with the following authorities are eligible to apply:
- Suruhanjaya Syarikat Malaysia (SSM)
- Jabatan Pendaftaran Pertubuhan Malaysia (ROS)
- Pendaftaran Perniagaan (ROB)
- Local Authority or any other authorities before 1 June 2020
Employers who have registered with PERKESO before 1 June 2020

Details	#MyApprentice	#HireMalaysia
		Below 40	Above 40	OKU/Disabled
Financial Incentives	RM600, monthly Up to 6 months	RM800, monthly For employees with salary above RM1,200 Up to 6 months	RM1000, monthly Up to 6 months	RM1000, monthly Up to 6 months
Priority	Fresh graduates and school leavers	For employers who have offered remuneration in line with the employee’s experience, qualification and skills	For employers who have offered remuneration in line with the employee’s experience, qualification and skills	NA
Condition	Fresh graduates and school leavers	For Malaysian job seekers who are below 40	For Malaysian job seekers who are above 40	For OKU/Disabled Malaysian job seekers or job seekers under Return to Work (RTW) Scheme
Additional Conditions	Employer is required to register the job vacancy at MyFutureJobs portal from 15th June 2020 or any job portal registered under Akta 246. Employer is required to hire job seekers who have been unemployed for at least 2 months (except jobseekers under #MyApprentice) For verification purposes, employer is required to register the job vacancy at MyFutureJobs while employee is required to register under the same portal. Employer is required to contribute SOCSO and EIS for the new hire. Employer is not allowed to terminate its existing employees and substitute with job seekers from PENJANA KERJAYA (#HireMalaysia) during this period. Employer is required to offer an employment contract of at least one year except those under #MyApprentice Scheme Jobseekers have to be under 60 years old
Effective Date	Hiring on and after 15 June 2020 is eligible to apply for these incentives
Closing Date	31 December 2020

4. Can employers claim incentives if workers are hired but have not registered at MyFutureJobs?

Yes – they can still apply so long as both the employers and employees register at MyFutureJobs. Furthermore, the employers are required to register SOCSO and EIS for the employees before they can apply for the incentives.

5. How to apply for the Short-Term Economic Recovery Plan incentives?

First of all, the employer is required to register the vacancy at MyFutureJobs even if they have advertised at other job portals. Once there is a new hire, the employer is required to register the new hire in the Assist Perkeso system within 30 days from the employee reporting to work date.

From 15 June 2020, employers can register their profile at Penjana Kerjaya’s portal. From 1 July 2020, employers can start applying for the incentives for new hires recruited under this programme.

6. What are the documents required for the application?

The documents required for the application are the following:

Employer’s Bank Account Details (First page of bank statement with name of employer, bank account number and bank)
Business Registration Number

7. How will the incentives under the Short-Term Economic Recovery Plan be disbursed?

The incentives will be paid monthly once the employer starts the EIS and SOCSO contribution as required by the law. For example, if the new hire is recruited on the 1st July but the employer only registers and contributes SOCSO and EIS on 15 July, the incentives will only be given from August 2020 onwards.

8. Will the employer continue to receive the incentives if the employee has resigned or terminated?

No – the incentives will be stopped once the employee has resigned or been terminated.

In essence, Malaysia’s Short-Term Economic Recovery Plan has been geared towards employment preservation and business sustainability. Through the provision of incentives, employers will be able to benefit from the perks and thus have a higher ability to hire workers without incurring additional costs. At WeCorporate, we offer payroll outsourcing services and guide you on navigating through this scheme to benefit you and your employees. Consult us today to find out more!

FAQs

Who is eligible for the Short-Term Economic Recovery Plan?
Employers who have registered with the following authorities are:
1. Suruhanjaya Syarikat Malaysia (SSM)
2. Jabatan Pendaftaran Pertubuhan Malaysia (ROS)
3. Pendaftaran Perniagaan (ROB)
4. Local Authority or any other authorities before 1 June 2020
5. Perkeso before 1 June 2020
What requirement must employers fulfill before they can apply for the Short-Term Economic Recovery Plan incentives?
Employers are required to register SOCSO and EIS for their employees before they can apply for the incentives.
What are the documents required for the application of Short-Term Economic Recovery Plan incentives?
The following documents are required for the application of incentives:
1. Employer’s Bank Account Details (First page of bank statement with name of employer, bank account number and bank)
2. Business Registration Number
Will employers continue to receive the Short-Term Economic Recovery Plan incentives once an employee has resigned or terminated?
The employers will no longer receive the incentives once the employee has resigned or terminated.

Christine

Christine is a content writer at WeCorporate whose focus is mainly on the business landscape in the APAC region. She also occasionally writes on trending topics and provides useful insights to aspiring entrepreneurs and seasoned businessmen alike.