Malaysia’s budget for 2023 has been released, and it’s essential for employers and HR leaders to understand the key highlights that affect their business operations. In this article, we’ll take a closer look at the Malaysia Budget 2023 and what employer hr should know.
Job Creation and Reskilling
The government has allocated RM 6.5 billion for job creation and re-skilling initiatives in the 2023 budget. The goal is to help companies create more jobs and train their employees to acquire new skills that will make them more marketable in the current job market. This initiative will help companies build a more resilient workforce and stay competitive in the global market.
Using EasyWork’s custom forms, both employer or employees can easily request the type of re-skilling course that they would like to explore.
Incentives for Digital Adoption
With the ongoing pandemic, digital adoption has become more critical than ever before. The Malaysia government has allocated RM 500 million for the SME Digitalisation Grant to help small and medium-sized enterprises (SMEs) adopt digital technologies. The grant aims to help SMEs improve their productivity and competitiveness in the digital age.
One of the best first steps of digitalisation is by investing in an All-In-One HR software, where employers are able to streamline all HR processes in one software and go paperless!
Increase in Minimum Wage
The minimum wage in Malaysia has been increased from RM 1,100 to RM 1,500 per month, effective from 1 July 2023. This increase will benefit over two million workers, and it’s a step towards creating a more equitable and just society.
Tax Relief for Employers
Employers will be given tax relief who hire inmates, including former residents of the Henry Gurney school and other institutions, eligible for additional tax deductions. This initiative aims to encourage more companies. On top of that, the government also introduced an Inmate programme to help assimilate inmates back into society.
Healthcare and Social Security
The government has allocated RM 32.5 billion for healthcare and social security in the 2023 budget. This allocation will help improve access to healthcare services, increase the capacity of healthcare facilities, and provide social security for vulnerable groups.
In conclusion, the Malaysia Budget 2023 has several initiatives that will benefit employers and HR leaders. From job creation and re-skilling to tax relief for employers, these initiatives aim to build a more robust and competitive workforce and create a more equitable society. Companies should take advantage of these opportunities to stay competitive in the current business landscape.