Summary
The coronavirus pandemic (COVID-19) has undeniably had an enormous impact on the production sectors and labour market worldwide, and Malaysia is no exception. In response to this issue, the Malaysian government has introduced several economic rescue programmes, including a temporary Wage Subsidy Programme (WSP) to help firms retain their employees. WSP has contributed significantly to workforce recovery but only providing short-term assistance. The ending of the WSP leads to a critical policy debate on how it affects employees and unemployment rates. This paper aims to examine the potential impacts of ending the WSP on employment in Malaysia.
