Labour Market Reform Must Be Balanced, Industry-based – MEF

KUALA LUMPUR, June 10 (Bernama) -- Every labour market reform needs to be implemented in a balanced, phased manner and guided by industry realities to ensure the competitiveness of businesses, especially micro, small, and medium enterprises (MSMEs) is maintained while prioritising the welfare of workers.

The Malaysian Employers Federation (MEF) in a statement today said that this approach is important because a stable, flexible, and investment-friendly labour ecosystem is a crucial foundation for sustainable national economic growth.

"MEF recognises the government's continuous efforts under KESUMA (Ministry of Human Resources) to strengthen the national social protection system and labour market through various reform initiatives, including the expansion of social protection through the 24-Hour Lindung Scheme and the development of a gig worker protection framework through the 2025 Gig Workers Act.

"MEF remains committed to continue to work closely with the government, KESUMA, trade unions, and all stakeholders to strengthen the country's progressive, inclusive, and globally competitive employment ecosystem," according to the statement.

At the same time, MEF praised the leadership of Human Resources Minister Datuk Seri R. Ramanan, who led the Malaysian delegation to the 114th International Labour Conference (ILC) in Geneva, Switzerland, and highlighted a strategic agenda for the future of work, particularly focusing on technological transformation, artificial intelligence (AI), and changes in the global labour market structure.

According to MEF, the approach highlighted by Ramanan emphasises the principle of human-centred growth, reflecting an important balance involving technological innovation, worker protection, business competitiveness and the national economy.

MEF president Datuk Dr Syed Hussain Syed Husman said Malaysia's active participation in the 114th ILC in Geneva demonstrates the country's commitment to remain at the forefront of shaping the future of global work.

"A balanced approach between technological advancement, worker protection, and industrial competitiveness is key to a sustainable labour ecosystem. MEF supports the government's efforts to strengthen social dialogue and ensure that every reform is implemented pragmatically, inclusively, and taking into account the realities of the industry," he said in the same statement.

Meanwhile, MEF also welcomes Malaysia's active involvement in strategic cooperation with the International Labour Organisation (ILO), International Organisation of Employers (IOE), International Social Security Association (ISSA), as well as participation in the Global Coalition for Social Justice.

"The above measures strengthen Malaysia's role as a country committed to tripartite social dialogue and enhance the international community's confidence in the stability of the country's labour policies," said the statement.

MEF will also continue to support efforts to strengthen social dialogue and tripartite cooperation to ensure Malaysia remains relevant as a key player in the rapidly changing international labour landscape