By Malaysia’s Ministry of Human Resources has said it is prepared to support journalists and other media employees who may lose their jobs amid a reported restructuring at Media Mulia, the publisher of Utusan Malaysia and Kosmo. Deputy Human Resources Minister Khairul Firdaus Akbar Khan told the Dewan Rakyat on November 3 that support could include benefits under the Employment Insurance System, subject to eligibility and contribution requirements, according to ET HRSEA.
The statement followed a parliamentary question from Suhaizan Kaiat, Member of Parliament for Pulai, who cited reports that between 100 and 200 employees at Utusan Malaysia could lose their jobs. Bernama reported that the proposed changes are expected to affect around 100 employees and journalists across the two newspapers. If the layoffs proceed, the ministry would ask the companies involved to submit applications for assistance and assess whether affected employees qualify for EIS benefits.
What the Employment Insurance System covers
The Employment Insurance System, known as EIS, is administered by the Social Security Organisation, or Perkeso. It provides temporary financial support to workers who lose their jobs through retrenchment, redundancy, or other eligible circumstances. The system is funded through monthly contributions from employers and employees, and eligibility depends on those contributions being up to date.
For HR and payroll teams, the key point is that EIS is not automatic. An employee who is retrenched must submit an application within 60 days of the job loss. The ministry’s statement specifically referenced this deadline, which makes it a practical concern for employers managing a restructuring. If an application is late, the employee may lose access to benefits even if they would otherwise qualify.
The deputy minister said the ministry had prepared six intervention measures to support affected workers, though the source did not detail what those measures are. He said he would share them with the Pulai MP to discuss the ministry’s role in assisting those affected.
What this means for employers in Malaysia
For Malaysian employers, a retrenchment exercise is not only a matter of notice periods and final pay. It also triggers obligations under the Employment Insurance System and, in many cases, the Employment Act 1955. Employers should treat EIS as a payroll compliance issue, not a post-termination afterthought.
The contribution requirement is the first thing to verify. If an employer has failed to remit EIS contributions for affected staff, those employees may not be eligible for benefits. That creates a serious exposure: the employer may face back payments, penalties, and potentially claims from employees who expected support. Payroll teams should audit contribution records before announcing any retrenchment.
The 60-day application window also matters operationally. Employers can help by preparing termination letters that clearly state the reason for job loss, since EIS claims require evidence that the separation was involuntary. A vague or mutual separation letter can complicate a claim.
What the ministry has said it will do
The ministry’s position, as reported, is that it will ask the companies involved to submit applications for assistance and then assess whether affected employees qualify. That is a reactive posture: it depends on the layoffs actually proceeding and on the employer cooperating with the application process.
The deputy minister did not confirm that the layoffs would happen, and the numbers remain reported estimates rather than confirmed figures. The parliamentary exchange suggests that the government is monitoring the situation but has not announced any special fund or bespoke scheme for media workers. The support framework remains the standard EIS process.
For HR leaders, that means the practical burden sits with the employer. The ministry can facilitate, but the employer must provide accurate data, issue proper documentation, and ensure contributions are in order. Where an employer is itself in financial distress, as appears to be the case with Media Mulia, there is a risk that contribution gaps exist. That should be checked early.
Steps for affected employees and their employers
The sequence for a retrenched employee is straightforward but time-sensitive. First, confirm that EIS contributions are current. Second, obtain a termination letter that states the reason for separation. Third, submit the EIS claim to Perkeso within 60 days of the last day of employment. Fourth, attend any required sessions or interviews arranged by Perkeso.
For employers, the parallel steps are to audit payroll records, prepare accurate termination documentation, and communicate the EIS process to affected staff before their last day. A common mistake is to treat the final payroll run as the end of the matter. In practice, the weeks after termination are when employees need clear guidance on how to claim.
There is no indication in the source that the government is offering anything beyond the standard EIS framework. Employers and employees should therefore work within that system rather than waiting for a special programme.
Sources: ET HRSEA
Photo: U.S. Marine Corps Lt. Gen. John Toolan, right, the commander of Marine Corps For by GySgt Rome Lazarus, Public domain
