Facilitating and Supporting the Design of an Unemployment Insurance System in Malaysia

The project aims at enhancing workers’ protection by exploring the introduction of unemployment insurance in Malaysia. The project will be rolled out in two phases and will deliver on three aspects: (1) Research study on unemployment insurance and other income-security measures for unemployed workers as well as employment services; (2) A national tripartite dialogue on the introduction of unemployment insurance; (3) A feasibility study including options on the design, an actuarial assessment, a legal review and draft law, and an implementation plan for an unemployment insurance system in Malaysia. The long term impact of the project will be a better social protection for the working age population by securing income, enhancing employability of male and female workers and ensuring stable employment in Malaysia. The expected outcome of the project will be a reliable basis for policy making, design and resource allocation decisions to implement UI in Malaysia. The project seeks to increase information and improve capacity among the government agencies and social partners on UI benefits, design options, resources allocation decisions, and the importance to link with employment services Outputs Output 1: An international comparative and benchmarking study for protection and proactive measures for unemployed workers is conducted in Asia and worldwide. Output 2: Labour market analysis and stocktaking of existing legal and institutional framework to protect the unemployed Output 3: Capacity building and national consensus building on the development of a UI system in Malaysia Output 4: A feasibility study including actuarial assessments of UI system (various scenarios), legal framework review, and recommendations on institutional set up and linkages with employment services and vocational training

Project symbol

MAL/11/02/MAL

Admin unit

RO-Asia and the Pacific

Start date

23/12/2011

End date

31/12/2016

Total allocation

269800

Total expenditure

Status

Closed

269800

Development Partners

Malaysia, Ministry of Human Resources, Social Security Organization

Country/Countries

Malaysia

Outcomes

Creating and extending social protection floors