Summary
The unprecedented nature of the COVID-19 pandemic has set in motion one of the most abrupt disruptions in decades, which has a severe negative impact on output and employment. In response to this, the Malaysian government under the PRIHATIN Economic Stimulus Package has designed the temporary Wage Subsidy Programme (WSP) to save jobs and help firms to keep as many employees as possible on the payroll. WSP has contributed significantly to workforce recovery but only provides short-term assistance. The ending of the WSP leads to a critical policy debate on how it affects employees and unemployment rates. This study focuses on examining the potential impacts of ending the WSP on employees and unemployment rates.
