The announcement of Budget 2020 in the last quarter of 2019 received generally positive reactions among the public. In line with the Shared Prosperity theme, several initiatives have been announced to boost employment rates among the youth and women in Malaysia, encourage entrepreneurial activity in the small and medium enterprises (SME) sector, as well as more targeted execution of financial aid and subsidies for those in the B40 category. On the business side, the sectors of technology, communication, tourism and property are expected to benefit from tax breaks and allocated stimulus, especially with the move towards the deployment of 5G technology, Visit Malaysia 2020 and the changes in policy for foreign buyers looking for property in the country. Overall, Budget 2020 seems to indicate a more positive outlook for the year ahead, aiming at sustainable long-term growth by investing in social wellness and infrastructure.
In order to fully understand how we can expect to see the year progress, five leaders in the sectors of economy, finance, women development and arts & culture reflect on what’s been set into motion and what more can be done in the coming months.
WOMEN DEVELOPMENT
Budget 2020 was deemed women focused, introducing several initiatives to help women in the social, employment and entrepreneurial sectors. A study by the World Bank says that Malaysia’s income per capita could increase by 26.2% if all working-age women participated in the labour market. As of 2018, women participation in the workforce stands at only 55%, and initiatives introduced in the budget could increase that number. We asked Sumitra Visvanathan what these new programmes would mean and what else can be done to bring women back to work.
SUMITRA VISVANATHAN,
Executive Director of Women’s Aid Organisation (WAO)
In the employment sector, many countries have initiated special programmes aimed at bringing women back into the workforce, and we applaud the Malaysian government for recognising this as a priority with the implementation of the Women@Work initiative.
The reasons for women who leave the workforce choosing not to return are complex, and addressing this phenomenon requires a multi-faceted approach. Whether for survivors of domestic violence who have been pushed out of the workforce by their abusive partners, or for mothers who leave after giving birth to a child, the proposed MYR500 monthly incentive for women who return to work can make a big difference for many individuals and not only motivate more women to return to the workforce, but also contribute to them achieving financial independence. Similarly, we anticipate the tax exemptions for women and tax incentives for employers also resulting in a greater percentage of women in the workforce.
Additional policies such as increased maternity and parental leave, as well as flexible working hours, will further enable not only women, but parents, to make the best decision for their situation about sharing household and income-generating responsibilities, and will likely result in more women participating in the workforce.
Women will also benefit in terms of financial aid to encourage entrepreneurship through funds provided through SME Bank and Skim Jaminan Pinjaman Perniagaan. Malaysia is full of entrepreneurial women from every segment of society and in every industry, from tech to fashion, and from food to philanthropy. Many women first turn to entrepreneurship as a way to generate income while having autonomy and flexibility over their time and schedules. Alternatively, many women have been shut out of careers in traditional industries as a result of violence and discrimination, which often happens with survivors of domestic violence who are prevented from working outside the home.
For these women, a marketable product or skill can turn into their very livelihood, and enable them to provide for themselves and their children, and live on their own terms. With allocations specifically for women starting and growing their own SMEs as provided in Budget 2020, more women can secure the initial capital to invest in the materials or skill-development required for them to start and grow successful enterprises, which will lead to more women being economically independent.
The government has also announced a review to Employment Act 1955 in increasing maternal leave from 60 to 90 days, as well as extending overtime eligibility and introducing and improving procedures in handling sexual harrasment and discrimination in the workplace. In addition to the proposed amendments, two other areas that still need to be improved are parental leave and protection for job seekers.
Currently, there is no provision for paternity leave in the Employment Act, although the Minister of Human Resources has committed to proposing seven days to Cabinet. While this would be a critical step forward, it is not enough. Malaysia should move towards a model of equal parental leave, which gives parents the autonomy to decide who should take leave after a child is born and when, and does not automatically place a disproportionate burden of childcare on mothers. Without this, there is an underlying assumption that mothers must be the ones to disrupt their careers, and that fathers have less of a responsibility to care for their children.
Additionally, we must extend protections for job seekers. Much of the discrimination that women face is during the recruitment and interview stage. Women not only face barriers in the form of sexist attitudes towards their capabilities, they are also routinely asked questions related to their marital status and pregnancy plans. Without protections in place for job seekers, women seeking employment have no recourse against such discrimination, which contributes to keeping them out of the workforce. We need these changes in order to level the playing field and encourage more women participation in the workforce.
TEXT ELLFIAN RAHIM, NEDA AL-ASEDI & SWAROOPINI UDHAYA NAIR
ILLUSTRATION DEPOSITPHOTOS
