KUALA LUMPUR – Nearly 86,000 workers and trainees are expected to benefit from the Progressive Acceleration for Capability and Employment (PACE) package, aimed at strengthening career mobility and economic resilience.
Announced by Prime Minister Datuk Seri Anwar Ibrahim during the 2026 Labour Day celebrations, PACE covers social protection, skills upgrading, job placement, youth talent development and gig worker empowerment in a more comprehensive and inclusive manner.
The Ministry of Human Resources (Kesuma) cautioned that Malaysia’s labour market is set to face sharper pressures beginning in the second quarter of 2026, particularly between May and September, identified as a difficult period.
“Based on Kesuma’s projections, without early and targeted intervention, job loss claims could reach around 18,500 in August 2026, almost matching the COVID‑19 peak of 18,579 claims in June 2020,” the ministry said.
“Five key sectors identified as at risk are Manufacturing, Wholesale and Retail Trade, Administrative and Support Services, Transportation and Storage, as well as Information and Communication,” it added.
PACE’s implementation involves aligning initiatives and existing funds from key agencies under Kesuma, namely the Social Security Organisation (Perkeso), Human Resource Development Corporation (HRD Corp), Skills Development Fund Corporation (PTPK) and Talent Corporation Malaysia Bhd (TalentCorp).
“This is to ensure workers, employers, micro, small and medium enterprises (MSMEs) and vulnerable groups continue to be empowered in facing economic uncertainty and current labour market challenges,” Kesuma said.
Under the package, Perkeso will strengthen social safety nets through the Employment Insurance System (EIS) and LINDUNG Kerjaya with more than RM580 million in funding, targeting over 56,000 displaced workers to receive financial aid, re‑employment interventions and employability support. From May 1 to May 12, a total of 1,227 claims were approved involving sectors potentially affected by global energy and supply crises.
Meanwhile, HRD Corp’s RM100 million fund will target nearly 20,000 participants including youth, gig workers, MSMEs, rural communities and vulnerable groups through seven flagship programmes — Vetri Madani, Daya, Elevate, Digital, Borneo, Nusa and Gig to Business (GTB) — focusing on skills upgrading, digital transformation, enterprise development and career mobility.
“These initiatives are being finalised and are expected to commence by end‑May 2026,” the ministry noted.
PTPK will roll out specialised skills training for e‑hailing and p‑hailing workers with an additional RM20 million allocation, aiming to strengthen the gig ecosystem and benefit 5,000 workers through diversified skills and social protection.
“Kesuma is finalising implementation mechanisms to ensure more inclusive and targeted training access,” it said.
TalentCorp will enhance youth talent development and MSME resilience via a RM10 million SME Industrial Training Matching Grant, targeting 5,000 paid industrial placements. To date, more than 100 companies have registered under the initiative, expected to open over 300 internship opportunities for students and graduates. - May 21, 2026
The post PACE to benefit 86,000 workers as Kesuma warns of job loss risks appeared first on Scoop.
