THE Employment Insurance System (EIS), to be implemented next year, is said to benefit about 6.5 million local employees (current count) in the private sector. Firstly, due to the supply of cheaper foreign labour, business as usual is still profitable and, secondly, the high dismissal costs of local workers. The EIS is the social insurance for the unemployed, to protect against the risks associated with economic distress and it will provide the flexibility for business to restructure to attain higher productivity. To safeguard against abuse, the system requires proof that one is actively seeking employment and not refusing suitable job placement. While certain regulations are necessary, it will reduce the cost of doing business if rules are made simpler and clearer.

Source: New Strait Times July 04, 2017 03:33 UTC