Govt rolls out RM710m package, RM10b guarantees to cushion job losses and support SMEs

KUALA LUMPUR, June 25 — The government has rolled out a RM710 million labour market resilience package alongside RM10 billion in SME financing guarantees to cushion job losses and support businesses amid global economic uncertainty, including energy price pressures and supply chain disruptions, Economy Minister Akmal Nasrullah Mohd Nasir said.

He said the measures, coordinated through the National Economic Action Council (MTEN), form part of an integrated approach to protect workers, sustain businesses and stabilise the labour market.

“The government has focused on ensuring the continuity of operations for micro, small and medium enterprises (MSMEs) and domestic industries. This includes the RM5 billion Bank Negara Malaysia SME Stabilisation Relief Facility (SME SRF).

“As of June 18, 2026, financing of more than RM700 million had been approved for over 1,000 SMEs,” he told the Dewan Rakyat today.

Akmal was responding to a question from Bachok MP Tuan Mohd Syahir Che Sulaiman on mitigation measures under MTEN to address rising job losses and business downsizing following the energy crisis and global economic uncertainty, as well as the outcomes of those measures.

He said a key pillar of the response was the RM710 million Progressive Acceleration for Capability and Employment (PACE) package, which was designed to strengthen job protection and workforce resilience.

Under PACE, he said more than RM580 million had been channelled through the Social Security Organisation (Socso) to strengthen the Employment Insurance System, while RM100 million had been allocated via HRD Corp for training and job placement programmes supported by MYFutureJobs.

A further RM20 million had been allocated for gig worker training through the Skills Development Fund Corporation (PTPK), alongside RM10 million via TalentCorp to support industrial training for SMEs and start-ups.

Akmal also said Malaysia’s labour market had remained resilient despite external pressures, supported by these interventions.

He noted that the highest number of job losses recorded this year occurred in January, with 10,658 individuals affected.

“The highest number actually occurred in January, with 10,658 individuals losing their jobs.

“When we analyse and understand this trend, it is largely linked to year-end transitions and business restructuring processes. However, overall, the situation remains under control in terms of job displacement,” he said.

He added that while job losses were being closely monitored, hiring activity remained an important indicator of whether the trend was temporary or signalled longer-term downsizing.

Akmal said current economic pressures were largely driven by supply-side factors rather than weak demand, with government support focused on helping SMEs maintain operations.

At the same time, he said social protection mechanisms had been strengthened through employment placement and career programmes.

He added that there was currently no need for extraordinary intervention, given that unemployment remained stable at around 2.9 to 3 per cent.

Akmal also confirmed that a fuller parliamentary briefing on the global energy crisis is expected to be presented next Monday, following a formal submission to Parliament.