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THE Ministry of Human Resources (KESUMA) has announced plans to table four significant amendments to Malaysia’s core labour laws, in a move designed to bolster worker protection and strengthen the country’s Technical and Vocational Education and Training (TVET) system.
The reforms are expected to benefit millions of workers, students and young people by introducing 24/7 social security coverage, enhancing safety nets for unemployed workers, aligning skills standards with evolving industry requirements, and providing more sustainable access to financing for skills training.
Under the proposed changes, the Social Security Act 1969 (Act 4) will establish a new round-the-clock protection scheme expected to cover some 10 million workers in the formal sector.
The Employment Insurance System Act 2017 (Act 800) will see strengthened support for unemployed workers, including financial assistance, employment interventions and job placement services.
KESUMA also intends to enhance the National Skills Development Act 2006 (Act 652), introducing three new categories under the Malaysian Skills Certificate (SKM) and raising TVET quality to improve youth employability.
Meanwhile, amendments to the Skills Development Fund Act 2004 (Act 640) are set to broaden and streamline access to funding for skills training, upskilling and reskilling.
The ministry confirmed that the second and third readings of the amendments are expected in early December 2025.
KESUMA emphasised that the reforms reflect the government’s commitment to building a more inclusive, responsive and competitive labour and TVET ecosystem, preparing Malaysian workers and youth to meet future economic challenges. - December 1, 2025
