Provide security, protection to lift informal workforce - World Bank

KUALA LUMPUR - There is a need to provide security and protection for informal workers to keep them in the labour market and to maximise their contribution to the overall economy, said World Bank country manager for Malaysia Yasuhiko Matsuda.

"So, the fundamental policy requirement is that these people are well protected in case they get into accidents, or their business does not do well, (so that) they have something to fall back on,” he told reporters after launching a report "Informal Employment in Malaysia: Trends, Challenges and Opportunities for Reform” here recently.

The report was a collaborative effort between the Ministry of Economy and the World Bank Group through the Reimbursable Advisory Services, which delves into the analysis of the scale and trend of informal employment. It deep dives into the regulations, policies and programmes governing informal employment.

Matsuda said there should be efforts to enhance policies to better protect and improve the productivity levels of the informally employed considering their higher degree of absolute vulnerability to shocks and their relatively lower economic productivity.

"Many informal workers are very vulnerable, given their inability to further invest in skills enhancement to achieve career advancement, or in risk-taking when starting new businesses.

"Malaysia can enhance the protection of informally employed workers by measures such as enhanced access to micro-insurance, private retirement savings funds and voluntary savings schemes,” he added.

He said the government should focus on policies to promote greater labour force participation among women and improve skills training to enhance productivity. - BERNAMA