Wage subsidies saving businesses and jobs

KUALA LUMPUR: The Wage Subsidy Programme (WSP) has been a blessing to employers grappling with cash flow while struggling to retain their workers.

Until the subsidies were rolled out, most employers thought they had to close their businesses.

On June 28, Prime Minister Tan Sri Muhyiddin Yassin announced the WSP 4.0 while unveiling the Pakej Perlindungan Rakyat dan Pemulihan Ekonomi (Pemulih), which will assist more than 242,000 employers with 2.5 million employees nationwide.

Freecom Trading director Gobi Harikrishnasamy expressed his gratitude to the Social Security Organisation (Socso) and its chief executive officer, Datuk Seri Dr Mohammed Azman Aziz Mohammed, for facilitating his appeal for the WSP.

“Freecom Trading is a 25-year-old small and medium enterprise (SME) and a major wholesaler of anchovies and kerepek from Kuala Selangor.

“I can retain my 18 workers only because of the wage subsidies.

“Initially, I did not qualify for the subsidies under WSP 1.0 and WSP 2.0 due to some glitches. During that period, I had to spend more than RM100,000 of my savings to pay my workers.

“Luckily, Socso helped to prevent my business from folding. Datuk Azman personally helped me with the appeal.

“After the approval, the subsidies were paid on time. I receive RM600 per employee,” he told the New Straits Times.

Gobi, who is also the Persatuan Kelab Golongan Orang Kurang Upaya (KGKU) president, said 14 of his workers were persons with disabilities.

He hoped the government would extend the WSP until the country’s economy recovers and encouraged employers to draw up creative plans to sustain their businesses.

Perintis Majumas Sdn Bhd human resource manager Mohamad Rasidi Ramlee said his company had been receiving wage subsidies since April last year.

He said that has prevented the company, which manages a resort in Pengerang, Johor, from retrenching its more than 100 workers.

“Without the WSP, we would have been forced to lay off workers and many of them would have lost their livelihoods.

“The WSP, however, allowed us to retain our workers with proper wages,” he said.

A&E Screening Studio Sdn Bhd owner Muhammad Akmal Mohd Fadilah said the WSP allowed his company to reduce overhead costs without laying off employees.

“Thankfully, receiving the WSP since April last year has helped us cope with these tough times.

“Since the subsidies help us with salaries, we channel our financial resources to cover rent, loans and other commitments.

“Like other employers, I hope the WSP can be extended until the Co-vid-19 pandemic is reined in.”

Paradise Data Analytics Sdn Bhd owner Nur Asyrena Amir said her company had to struggle with cash flow after a dip in sales and procurement due to the pandemic.

“In order to sustain our business, we resorted to some drastic measures, such as closing down some offices, applying for loans and liquidating assets.

“The WSP was certainly a boon for us, as it reduced our labour costs and helped preserve our workforce,” she said.

Since its inception in April last year, the government has extended the WSP four times.

From Aug 1, employers with 500 workers will receive RM600 per employee (with no salary ceiling for eligibility) for four months.

Under the previous WSP, only an employee earning RM4,000 and below was entitled to receive the subsidy.

Source: NST