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The four proposed amendments seek to improve worker protection and strengthen the country’s TVET ecosystem, and are expected to benefit millions of workers, students, and youth.
The Ministry of Human Resources (KESUMA) is advancing a series of major legal reforms through four proposed amendments intended to build a more inclusive labour system in Malaysia. The Ministry said the approval of these amendments is expected to benefit millions of workers, students, and youth through stronger protection, better skills development pathways, and more sustainable access to training support.
According to KESUMA, the reforms centre on expanding 24/7 social security protection, strengthening assistance for workers who have lost their jobs, harmonising skills standards to better meet industry needs, and guaranteeing access to broader and more efficient financing for skills training.
Four amendments aimed at strengthening Malaysia’s labour and TVET ecosystem
The proposed changes cover four key acts:
- Act 4 (social security act 1969)
- Act 800 (employment insurance system 2017)
- Act 652 (national skills development 2006)
- Act 640 (skills development fund 2004)
Act 4: Introducing 24/7 social security protection
Under the amendment to the Social Security Act 1969, KESUMA is introducing a 24/7 protection scheme (LINDUNG 24/7), described as comprehensive protection for workers around the clock, including outside working hours. This will involve approximately 10mn workers in the formal sector.
Act 800: Strengthening support for workers who lose their jobs
Through amendments to the Employment Insurance System Act 2017, KESUMA aims to strengthen the safety net for workers who have lost their jobs. This includes increased financial assistance, enhanced employment interventions, and relocation support.
Act 652: Harmonising skills standards to meet industry needs
The amendment to the National Skills Development Act 2006 focuses on strengthening national skills standards so they become more responsive to industry needs. As part of this reform, three new categories under the Malaysian Skills Certificate (SKM) will be introduced. KESUMA said this aims to improve the quality of TVET and increase the marketability of youth and students.
Act 640: Guaranteeing access to sustainable skills financing
Reforms to the Skills Development Fund Act 2004 are intended to guarantee access to broader and more efficient skills financing to support upskilling and reskilling programmes.
What’s next
KESUMA shared that the second and third readings of the four amendments are expected to take place in early December 2025. These legal reforms, it said, reaffirm the Ministry’s commitment to building a more inclusive, responsive, and competitive labour and TVET ecosystem, aiming to ensure that Malaysian workers and youth are equipped to face the demands of future economies.
ALSO READ: Malaysia to expand social security provisions with new 24/7 worker protection scheme
Lead image / KESUMA Facebook
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