SITUATION OF YOUNG WORKERS IN MALAYSIA

By Sivam Doraisamy

Executive Summar

The purpose of the study is to survey the situation of young workers between the age group 15 to 34 in Malaysia. The survey is based on library search, random interview with production workers and information/views obtained from community organization working with plantation workers, factory workers and urban settlers. Major concern of the study is to analyze the changing trend of

Changing positions of young workers in the changing labour markets in the past decade and prospect. Besides other issues concerning young workers such as working conditions and social problems were also presented to give an overall picture of the situation of young workers in Malaysia today.

Youth population between the age group 15 to 34 in Malaysia is approximately 9.75 million and they are around 42.5% of the total population. Youths are also the largest labour force; about 60 to 55% for the past decade and these are the young workers of the nation. Percentage of young workers between 15-24 years old are lesser (23.3%, 2000) compared to young workers between 25-34 years old (31.6%, 2000). At least 54% of young workers are employed. Employed young women workers made up of 50% of the total employed male young workers. High proportion of young workers is in the manufacturing sector. Young workers also the largest number without employment as the statistics shows that about 83.6% were unemployed especially those between the age group 15-24, forms 65.6%. The total number of registered unemployed young workers with the Human Resource Ministry is declining over the decade. Unfortunately, the numbers of young workers aged between 15-24 registered with the Ministry have relatively increased and form an average of 37% compared to those age between 25-34 only about 13.5% over the past 10 years. Most of these young workers were also without working experience, about 45%.

So, the population of youth between the age group 15 to 24 are lesser about 4.37 million (2000) and the number of young workers (labour force) among the same age group also lower, 23.3% but the number of them in the unemployed category are higher, 65.6% and the number of them registered with the Ministry also relatively higher, about 37%.

At least 65% of total registered young workers have education level above MCE or O level. Labour market indicator shows that the job vacancies reported to the Ministry is increasing especially in the manufacturing sector, about 54.6%. But then, another problem facing the young workers in the current economy crisis is retrenchment. Though the government statistics shows the number of retrenchment is declining but it is shocking that the highest percentage (55.15%, 2000) of those retrenched are from the manufacturing sector, knowing well that most young workers are in that sector.

Another trend in Malaysia, is the growing number of 'outside the labour force' youths. Based on government statistics, it shows most of them have secondary level education and tertiary education but why are they not part of the labour force especially when 55.5 % of them are involved in housework? Whether it is their choice or are they not equipped with right skills to obtain gainful employment need to be studied in future.

Looking into the working condition of the young workers in Malaysia, one could say that we are still backward in the sense that working conditions are depriving. Lowest 40% of household earning an average monthly income of RM840 and the medium 40% earn below RM2, 202 while the top 20% earns RM7, 006 a month. Only 20% of workforce are professionals, technical workers and managerial workers, the remaining 80% are production-related workers. No minimum wage law in the country. Unionization of labour force is very low (8%) and labour laws are lenient towards employers. Working hours are increased to more than 12 hours a day. Low income has forced young workers to engage in more than one job in order to survive the high cost of living especially with the privatization of public utilities. Rest, leisure times and in worst situation, family is forgotten. Thus, it effects healthy family development and creates more social problems.

Besides, the number of industrial accidents and deaths recorded in the country is quite high especially in the production-related sectors where young workers are employed high in number. This indicates lack of enforcement on the part of the government while the employers in their intense to maximize profit has neglected workers health and safety at work place. Number of Social Security programs designed for the workers also seems to be ineffective in curbing the industrial accidents as well as protecting the workers from retrenchment and other labour rights.

Reviewing the issue of housing conditions and the need to own affordable permanent house with enough space and facilities seems to be far a reach for those in the lower income group especially. Forced eviction adds further burden to the young workers population in the marginalised and neglected communities such as urban pioneers and plantation workers.

Social problems among young workers and youth in general are alarming. For instance, the largest proportion of young workers, especially the unemployed is infected with HIV/AIDS. So are the alarming figures of 400,000 young workers addicted to drug. Juvenile delinquency is also arising in number. All together it gives a picture that the situation of young workers in Malaysia are very critical and they are not the one to be blamed entirely since the overall picture of the social and economic situation in Malaysia shows an unequal development.

Currently, young workers seem to be in a situation where unemployment are higher among them with social problems and employed in unskilled/semiskilled job with low wages and depressing working conditions with the higher possibility of retrenchment. The increasing number of unemployed young workers, especially those who have no working experience and with those limited number of youths engaged in highly skilled jobs (around 7%) indicates that the government need to do a lot to improve the situation in order to achieve higher and healthy economic growth. Laws that deprive young workers of their rights need to be reviewed. Minimum wage law must be legislated to guarantee a decent and fair wage and safety and health at work place must be given priority. Housing, health care and education must be made affordable and reachable to all level of people. Presently there is no compulsory education policy and free education policy particularly for primary schools needs to be reviewed, even though literacy rate shows 93%.

Future labour market prospects shows that more skilled workers with more talents and innovations are needed. Without skills, unemployment rate among young workers would increase and so are other social problems. The government needs to provide skilled labour force that the market needed. Identifying problems or restrictions that young workers facing in attaining such skill education would help to improvise current planning that the government already has to produce quality skilled workers. That might help the government move towards its vision of achieving high value-added, technology-intensive and capital intensive industrialization and besides minimizing labour inputs and maximize quality and skills. More Skill Training Centers with advance technology level and retraining programs must be formulated to reach all levels or class of young workers in Malaysia.

SITUATION OF YOUNG WORKERS IN MALAYSIA

1.1 Introduction

a) Who is a young worker?

Malaysian's Employment Law defines a child as a person under 14 years of age and a young person as under 16. International Labor Organisation, via Minimum Age Convention 1973 sets a number of minimum ages depending on the type of employment or work. The first principle is that the minimum age should not be less than the age for completing compulsory schooling and in no event less than age 15. The second principle is that a higher minimum age should be set for hazardous work. This age may not be less than 18.

According to the Standard United Nations definition, 'youth' comprises young people aged between 15 to 24 years inclusive. The Confederation of Free Trade Unions-Asian and Pacific Regional Organization (ICFTU-APRO) defines Young Workers as a person between the age 15 to 35. The Malaysian government defines youths, as those between the age group 15 to 40 years while the Malaysian trade Union Congress (MTUC) says youth are those between 15 to 34. Thus for the purpose of this research, the researcher adopt the MTUC definition. If a person working part-time or full-time or searching for a job and the person is between 15 and 34 years of age, then he or she is considered to be a young worker.

b) Objective of the Survey

The Year 2002 on Situation of Young Workers in Malaysia is a library research conducted within a month period. The Survey was conducted in cooperation with the Malaysian Trade Union Congress besides Human Resources Ministry, Occupational Health and Safety Department and Health Ministry through its statistical arm and the Department of Statistics Malaysia. The survey is done to collect data and analyze the following:

§ The general trends of changing positions of young workers in the changing labour market in the past decade and prospect.

§ Problems of young workers in the labor market such as unemployment, skill training and retraining and career building.

§ Problems of working conditions of young workers such as wage, working hours and Social Safety Net.

§ Social problems and young workers such as HIV/AIDS, drugs, housing, education and juvenile delinquency.

The survey was undertaken as part of Confederation of Free Trade Unions-Asian and Pacific Regional Organization (ICFTU-APRO) who is conducting a regional survey on Situation of Young Workers. Their objective of the survey is to draft a comprehensive policy statement on young workers to be submitted to the 18^th. Regional Conference.

c) Overview on Malaysia's Economy and Employment Policies

Malaysia is rich in natural resources and primary commodities, and the country's economic grow at a very satisfactory rate, 8 % per year from 1988 - 1997. It has reduced unemployment and enjoying full employment rate since mid 1990 though the country has 1.7 % foreign workers (Bank Negara 1998).

Malaysia is also a multi racial country with 2 main national groups- Bumiputeras and Non-Bumiputera. Bumiputeras refer to Malays and other indigenous people while Non-Bumiputera refer to other Malaysians of Chinese, Indian, Caucasian or other ethnic origins. It is important to mention in the study that in Malaysian situation race is the key factor that determines businesses, education policy, social policy, cultural policy, entry into educational institutions, discounts to purchasing houses and others as put it by Dr. Kua Kia Soong in his paper 'Racial Eyesores on the Malaysian Landscapes'. Racism, which has its origin in the colonial divide and rule strategy, continues to be used as main pillar of our economic planning. The New Economic Policy (NEP: 1970 -1990) and the New Development Policy (NDP: 1991-2000) as well as the Vision 2020 are all visions which is based on the foundation of the racial set-up in the country. The vision talks about a single, united and prosperous Malaysia by the year 2020.

In a paper presented by Takeshi Inagami (Employment and Training Department, ILO) on Labour Market Policies in Asian Countries which was published in 1998, summarized the labour market and labour policy trend in Malaysia as follows:

"One of National Economic Policy's objectives, in the context of plans for economic growth, was the elimination of poverty. Another strand was the Bumiputra policy of seeking a re-structuring of employment, which corresponded to the ethnic composition of the population. The NEP achieved clear results in terms of employment creation, but was less obviously successful in terms of "re-structuring society and employment". In the early 1980s the development of heavy and chemical industries under the ISI (ISI: import substitution industrialization) policy led to the incurring of huge foreign debts, and in order to repay these debts Malaysia came, from the mid-1980s onward, to adopt a fresh strategy, one of EOI (EOI: export orientated industrialization) led by foreign investment. Two distinct phases of the EOI policy can be identified: in the late 1980s the approach was one of low-cost labor-intensive EOI, whereas from the early 1990s onwards there was a shift of emphasis towards one of high value-added, technology-intensive and capital-intensive industrialization."

Takeshi also reported that in accordance to the EOI-foreign capital-led character, which is capital-intensive and technology-oriented, the government played a central role in creating appropriate human resource development policies. The function of the private sector has gradually come to receive more emphasis. These measures can be seen in general terms as a response to the qualitative component of the labour shortage.

The second Industrial Master Plan (1996-2005) is a blueprint to guide Malaysia's quantum leap into the 21st Century as an industrial nation and a global market player. It calls for fundamental shift in emphasis, moving beyond manufacturing operations to include R & D and design capability development of integrated supporting industries, packaging, and distribution and marketing activities. Similarly, the government's policies via seventh five-year plan (1996-2000) also reported that economic constraint such as labor and skills shortage, productivity deficit would be addressed by turning Malaysian manufacturers into major players in the world market and by weaning them away from labor intensive industries. The plan also promotes investment in science and technology and emphasizes human resource development, especially greater efforts to address growing labor shortages in manufacturing, agriculture and services. It also reported that job creation would be replaced by minimization of labor inputs and maximization of quality and skills.

Based on the Malaysian government's labour policy, it indicates that employment opportunities are growing in Malaysia but unemployment rate seems to be increasing too. Table 1.1 provides Malaysia's Key Economic Data between the year 1995 to 2000. The National Income based on Real Gross Domestic Product growth shows a 4.4 % decline over the past 6 years.

According to the Ministry of Finance Malaysia, in it's Economic Report 1999/2000, Malaysia's Income per capita in 1998 is RM12, 134 (-1.5% growth) and increased 1.4% to reach RM12, 305 in 1999, It is estimated to grow 4.7% (RM12, 883) in the year 2000. On the other hand, data on mean gross household income and income share by income group in 1999 shows that the top 20% own 50% share of the national income while the bottom 40% only own 14% (Human Development Report, 1996). According to a paper presented by Samsudin Hitam on 'Bumiputera Achievements in Economic Sector 1999,' the average income of the bottom 40% is only RM840 while the top 20% earn an average monthly income of RM7, 006. Anyhow, according to seventh Malaysia plan, the absolute poverty rate has dropped from 20.7% in 1985 to 6.8% in 1997 but many academicians as well as community and labour groups are not happy with the official poverty line of 4.6 people each living in monthly income of RM425.

Table 1.1- MALAYSIA: KEY ECONOMIC DATA 1995-2000

No.	Item	Year
		1995	1996	1997	1998	1999*	2000**
1.	Population (million)	20.7	21.2	21.7	22.2	22.7	23.3
2.	Real GDP Growth (%)	9.4	8.6	7.7	-7.5	4.3	5
3	GNP Per Capita (US $)		4,543	4,377	3,093	3,255	3,349
4.	Labour Force (thousand)***	8,257	8,641	9,038	8,881	9,010	9,194
5.	Labour Force Growth (%)	5.4	4.6	4.6	-1.7	1.5	2
6.	Employment (thousand)	8,024	8,417	8,805	8,563	8,741	8,920
7.	Employment Growth (%)	5.5	4.9	4.6	-2.5	1.7	2.1
8.	Unemployment Rate(%)***	2.8	2.6	2.6	3.2	3	3
*Estimates **Forecast ***Economic Planning Unit estimates Source : Economic Report 1999/2000

2.1 General Trend Of Changing Positions Of Young Workers In The Changing Labor Market, 1990-2000.

a) Labour Force and Employment Trend, 1990 -2000

According to the seventh (1996-2000) and the eighth (2001-2005) Five year Malaysia Plan, youth population between the age group 15 -24 has increased 2.1 % a year from 3.58 million in 1990 to 3.97 million youths in 1995. A further increase of 1.6 % is recorded from 4.03 million in 1995 to 4.37 million in the year 2000 as stated in the below table. It is estimated that in year 2005, youth population in Malaysia between the age group 15-24 would grow to 4.98 million while those between the age 25-39 would increase to 5.83 million. Youths between the age group 15-39 made up of 42.6% of overall Malaysia's population in 1995 and in 2000, they are reduced to 41.9%, still it is a very high proportion of the population.

Table 1.2- Malaysia: Distribution of Youths by Age Group, 1990-2000

(Million)

Age Group	1990	%	1995	%	2000	%
Less than 15	6.75	37.5	7.33	34.7	7.71	33.1
15 - 24	3.58	19.9	3.97	19.5	4.37	18.8
25-39	3.99	22.2	4.85	24.1	5.4	23.3
Above 39	3.66	20.4	4.54	21.7	5.79	24.8
Total	17.98	100.0	20.69	100.0	23.27	100.0

Source: 7^th. & 8^th.Malaysia's 5-Year Plan 1996-2005

Following is the distribution of labor force according to age group, which is the total percentage of employed and unemployed workers over a decade, abstracted from the Department of Statistics Malaysia. Both the dispositions shows that youth population between the age group 15-24 is increasing gradually over the year yet the labor force for the same age group is descending, for both male and female in Malaysia compare to those between the age group 25-54.

Table 1.3- Malaysia: Percentage Distribution of Labor Force by Age Group, 1990-2000

Age Group	1990	1992	1993	1995	1996	1997	1998	1999	2000
15-64 15-24 25-54	100.0 29.2 65.1	100.0 27.8 66.2	100.0 26.7 67.6	100.0 25.4 68.7	100.0 25.7 68.5	100.0 25.1 69.1	100.0 23.8 70.4	100.0 23.8 70.6	100.0 23.3 70.9

Source: Department of Statistics, Malaysia

The following table shows a comparison of total labour force by age group and gender for the year 1990 and 2000.

Table1.4- Percentage distribution of Labour Force by Age Group and Sex, 1990 & 2000

Age Group	1990	2000	Difference
Total 15-19 20-24 25-29 30-34	10.7 18.5 16.8 14.1	6.7 16.6 17.0 14.6	-4.0 -1.9 +0.2 +0.5
Male 15-19 20-24 25-29 30-34	9.9 17.2 16.8 14.2	6.2 15.1 16.8 15.0	-3.7 -2.1 0 +0.8
Female 15-19 20-24 25-29 30-34	12.1 20.8 16.7 13.8	7.6 19.5 17.5 13.9	-4.5 -1.3 +0.8 +0.1

Source: Department of Statistics, Malaysia

Table 1.5- Malaysia: Percentage Distribution of Employed Persons

By Age Group 1990-2000

Age Group	1990	1992	1993	1995	1996	1997	1998	1999	2000
15-24 25-34 35-54	27.1 31.5 35.4	26.1 31.8 36.0	24.9 31.9 37.4	23.8 31.5 38.7	24.6 31.2 38.3	23.9 31.3 38.9	20.8 31.6 41.2	22.2 31.7 40.2	21.9 32.1 40.1

Source: Manpower Department

Malaysia's period of EOI industrialization which started since early 1970 caused a large internal migration of youth, especially women from the rural to the more urban areas of the Free Trade Zone. Many of these women workers are generally involved in the labor intensive manufacturing work (textile, food, and electrical and electronic industries). The participation of women in the labor force has substantially increased over the years 47.8% in 1990 and 46.7% in 2000. Nevertheless compare to men's labor force participation which is comprised of 85.3% in 1990 and 83.3% in 2000, women participation is considered low.

The following chart shows total number of employed young worker by gender and age in year 1990 and 2000. It clearly demonstrates the number of women young worker in employment is much lower. Total number of male young worker in employment in 1990 and 2000 is 4310.7 and 6,086.2 each respectively compared to female young worker employment 2374.3 and 3,235.5. The proportion of employed men workers between the age group 15 to 34 compared to the total male employed persons is 43.1 % in 1990 (2451.2) and 47.8 % in 2000 (3175.6). Whereas women workers between the age group 15 to 34 made up of 38.2 % in 1990 (1,468.1) and 42.6% in 2000 (1,857.6). Besides that, the entire group has shown growth between the year 1990 and 2000 except for those aged 15 to 19 which could be due to the factor that job opportunity for them has dropped or they are still in school or training institution.

Source: Department of Statistics, Malaysia

According to the Malaysia's seventh and eighth 5-year plan, number of working youths in 2000 was 2.3 million compared to 1.86 million in 1995 and 1.81 million in 1990. The government suggests that the rest of the youths are either just finished their study or training or still in their tertiary education level. As shown in Table 1.6, percentage of youths working in the agricultural sector has declined from 19.3 % in 1990 to 13.1% in 1995 whereas in the manufacturing sector, there was an increase from 32.8 % to 37.9%. The government also claims that job opportunities in the manufacturing sector are wide since it contains 34.1% working youth in 2000.

Number of working youths in urban area also shows significant increase from 33.6% in 1990 to 56.5% in 1995 which implies growing number of youths migrating from rural to urban area to find a better job opportunities. Government statistics also points changes in employment pattern for instance youths in the professional and technical category has increased from 7.1% in 1995 to 7.4% in year 2000.

Table 1.6: Malaysia-Number of Employed Youths by Sector in 1990,1995 & 2000 (%)

Sector	1990	1995	2000
Agricultural, Forestry, livestock & fishing	19.3	13.8	29.9
Mining & Quarrying	0.3	0.3	0.2
Manufacturing	32.8	36.2	34.1
Construction	6.1	7.0	5.8
Electric, Gas & Water	0.2	0.2	0.1
Transport, Storage & Communication	2.6	3.4	2.5
Wholesale & Retail Trade, Restaurants and Hotels	20.5	19.7	14.5
Finance, Insurance, Real Estate & Business Services	3.4	5.4	2.0
Other Services (Community, social & personal services)	14.8	14.0	10.9

Source: 7^th. & 8^th.Malaysia's 5-Year Plan 1996-2005

b) Labour Market: Unemployment

ILO defines youth unemployment as those people who have not worked for more than one hour during the short reference period (generally, the previous week or day) but who are available for and actively seeking work. The general economic definition of unemployment is defined as a state in which there are qualified workers who are available for work at the current wage rate and who do not have jobs.

From 1995 to 2000, more than 1.3 million persons has entered the labour market with an average of 254,400 persons a year but number of labour force in the age category 15-24 has reduced due to longer universal education period from 9 to 11 years (Eighth Malaysia Plan).

In 1990, 72.4% young workers between the age group 15-24 were unemployed compared to 65.6% in 2000. Meanwhile 16.4% youth between 25 - 34 years old were unemployed in 1990 compared to 18% in 2000. Table 1.7 compares percentage distribution of unemployed young workers in Malaysia, 2000 by gender and stratum. The highest percentage of youths without work is those between the age group 15 - 24 and women young workers are relatively more than men workers without employment. It also indicates that more young workers are unemployed in the rural area compared to urban and young workers between the age group 15-34 made up a large portion, 83.6% out of the total unemployed workers in Malaysia. This suggests that unemployment among young workers is a serious problem to peruse.

Meanwhile Malaysia's Department of statistics in its report also establishes that in 2000, unemployed young workers between the age group 15-19, are the highest number 48.7%, who have not worked before while 40.3% youth between 20-24 also have not worked before. Those who have worked before are 18.7% and 33.7% for each category. Whereas the adults between 25-29 and 30-34 show 16.4% and 7.2% each have working experience compared to those without working experience only about 7.4 % and 0.7% each.

Table 1.7 - Percentage Distribution of Unemployed Persons Age Group, Stratum and Gender, Malaysia, 2000

Age Group	Total			Urban			Rural
	Total	Male	Female	Total	Male	Female	Total	Male	Female
15-19	29.5	27.7	32.7	24.3	23.9	24.9	35.1	32.0	40.0
20-24	36.1	33.8	40.1	37.6	34.3	44.1	34.4	33.2	36.4
25-29	13.2	13.1	13.3	13.5	12.9	14.7	12.8	13.3	12.0
30-34	4.8	5.5	3.7	5.1	5.6	4.2	4.5	5.3	3.2
Total	83.6	80.1	89.8	80.5	76.7	87.9	86.8	83.8	91.6

Source: Department of Statistics, Malaysia

The following chart shows that the number of unemployed persons registered with the Manpower Department has lessened from 1992 to 1996 and at the same time job vacancies are relatively lower than new registrants with ratio 1:1.2 in 1992 and 1:1.5 in 1996. The chart displays that placements by the Department are very much lower compared to the number of new registrants.

Source: Manpower Department, Ministry off Human Resource.

Table 1.8- Malaysia: Registered Unemployed and Percentage by Age, Level of Education and Employment Status (1990-1999)

		Age				Level of Education			Employment Status
	Total registered unemployed^*	15-19 years	20-24 years	25-29 years	30 and above	Below LCE	LCE	MCE And above	Wholly unemployed
1990	54,387	10.9	56.1	22.3	10.6	19.9	17.4	62.7	88.4
1991	50,159	24.6	47.8	16.6	11.0	20.0	18.2	61.8	86.7
1992	42,344	25.2	46.5	16.5	11.8	199.7	18.9	61.4	85.1
1993	31,617	27.4	44.2	16.0	12.4	18.9	19.4	61.7	85.3
1994	26,445	28.6	42.8	15.1	13.5	19.0	19.6	61.4	83.0
1995	25,546	30.5	42.9	14.0	12.5	18.1	17.4	64.5	80.2
1996	21,668	30.2	44.1	13.2	12.5	14.9	20.7	64.4
1997	23,762	27.1	44.8	13.3	14.8	9.0	14.3	53.4	81.7
1998	33,345	23.3	46.0	15.6	15.1	11.3	19.1	69.6	81.5
1999	31,830	23.6	46.8	16.7	12.9	9.2	18.3	72.5	78.2

^*Covers all registrants with or without work experience and institutional training and those who were employed, self-employed or

family workers or wholly unemployed. Source: Manpower Department, Ministry of Human Resource

Based on Table 1.8, total number of unemployed persons registered with the Department has reduced 41.47% from 54,387 in 1990 to 31,830 persons in 1999. The highest numbers of registered unemployed are young workers between the age group 20-24 years old with an average of 46.2%, followed by those aged 15-19 years, 25.14% compared with adults aged 30 and above, only 12.7%. The data also indicates that most of the registered unemployed has better education level and their numbers are growing each year. According to the Ministry of Finance's Economic Report 2000/1, the number registrants (active job seekers) with the Manpower Department within the age group of 20-24 years were the largest in 2000, accounting for 46.4% (16,889 persons) of the total. Those in the age group of 15-19 years, the second largest group registered a decline of 25.7% (7,866 persons) from 1999 while 20.1% or 7,321 job-seekers were those already in the employment but seeking better job opportunities.

Educational attainment off those unemployed in 2000 shows 65.3% persons have reached secondary school level, the highest compared to those with no formal education 3.7% while those with tertiary education is 15.2%. Overall statistics proves that more men workers have better education opportunities compared to women workers either in rural or urban though relatively in rural area persons with no formal education are higher as well as the women workers in general.

The Human Resource Ministry's Year 2000 Annual Report recited that through the Planning and Policy Research Section (BPPD), information on Labor Market indicators were collected. Among the information are on workers retrenchment, job vacancy, job search, retraining, strike and picket. These reports are then analyzed to provide labor market report for weekly, monthly, quarterly and yearly. According to the data, an increase of 14% or 108,318-job vacancies from 1999 to 123,484 vacancies in 2000 were reported to the Manpower Department. The highest vacancy recorded in year 2000 is in the manufacturing sector 54.6%, followed by Agricultural, Forestry and Fishing, 25.4%. New registrant who is searching for a job and registered with the Manpower Department has decreased 8.2% from 112,835 in 2000 to 122,920 persons in 1999.

The Ministry also reported that retrenchment is showing a downward trend. In 2000, it descended 32.4% to 25,236 persons compared to 37, 357 in 1999. In the year 2000, 55.15% (13,920) workers retrenched are from the manufacturing sector. Though the percentage of women workers retrenched in 2000 has increased, the actual number has dropped to 13,491 compared to 36,284 in 1999. Majority of them is from the manufacturing sector.

Table 1.9- Malaysia: Unemployment Rates (%), 1990 - 2000

Sector	1990	1991	1992	1993	1994	1995	1996	1997	1998	1999	2000
Unemployment Rates *	5.1	4.3	3.7	3.0	2.9	2.8	2.6	2.6	4.9	3.0	3.0*

Note: ^*Estimates by Economic Planning Unit
Source: Economic Planning Unit and Ministry of Human Resource

Under the unemployment category, it is also important to analyze the situation of those labeled as 'outside the labour force'. Malaysia's Statistics Department, defines them as persons not classified as employed or unemployed including housewives, students (including those going for further studies), retired or disabled persons and those not interested in looking for a job. While the author of Youth Unemployment and Employment Policy, 2001 describes Outside Labour Force as "discouraged workers", these peoples are actually wish to work but are not actively seeking job since they see no possibility of obtaining gainful employment. If and when the chances of finding work improve, some of them would return to employment without ever having been classified as unemployed.

Information on part-time, casual or temporary workers in Malaysia is very limited. Anyhow it is a common view that those considered as 'outside labour force' are the ones usually engaged in such part time, and temporary job especially school students waiting for their results or housewives who have children to take care would engage in part time job. Most of the part time or temporary jobs are available in Sales Departmental Stores, in the manufacturing sector, food services, clerical line and so on. There is also a current trend where women workers are being employed in home base manufacturing work, which goes unrecorded and they are part of the cheap labour scheme.

In Malaysia about 33.8% youths between 15 -19 and 11.3% of those between 20-24 are considered outside labour force in 2000 compared to 31.1% and 10.3% each in 1995. Comparing young workers outside labour force in urban and rural area for those between 15-19 years old, statistics indicates in rural there are more of them with difference within 1.7 to 3.5% in 1995 to 2000. Adults between 25-34 made up an average of 9.6% in 1995 and 8.2% in 2000. Male workers aged 15-19 is the most in outside labour force in year 2000 that is 64.5% compared to women workers only 23.7%.

About 35.2% of those outside labour force are still schooling while about 55.5 % are involved in house work with 72.7% are women. While those not seeking job due to disability are about 1.4% (2000) and 2.1% in 1995 compared to those who are not interested is 0.5% (2000) and 0.9% (1995). Majority of the persons outside labour force has secondary level education (55.7%) and tertiary education (12.2%) and only about 9.3% have no formal education as at year 2000.

c) Skill Training & Career Building

Why is the number of youth unemployment, especially those between the age ranging 15 -24 and those with higher education are higher? Their numbers also high among those who have not worked before under the unemployment data. Could it be caused by insufficient supply of skills on the part of the young workers or are they not given enough opportunities to gain the skills and experiences needed in the labour market to secure a decent job? According to Niall O'Higgins in his book 'Youth Unemployment and Employment Policy', the skills level of an individual does effect that person's employment prospects because it contributes in determining the quality of work, impact on wages and in long run in the growth of employment.

In Malaysia, majority of the youths is in the production line as described in Table 2.0, with 43% in 1990 and increased to 44.5% in 1995 and dropped to 39.9% in 2000. The second highest number of youths are working in agricultural, forestry and fishing which has dropped from 19.1% in 1990 to 14.9% workers in 2000. Whereby number of youths working in the professional, technical and related line has grown from 4.8% in 1990 to 7.4% in 2000. Percentages of youths working in the administrative and managerial level are very low. The data indicates that number of unskilled or semi-skilled youth workers in Malaysia are much higher compared to the professionals and skilled workers.

Besides that, it was also found that number of female workers employed in the manufacturing industry has increased from 10.7% in 1957 to 50.7% in 1990. Women workers constitute about 80% of the labour force in the electronic industry and it's followed by textiles and clothing, about 75% in 1990's. The data, which was obtained from a book titled 'Malaysia's Economy in the Nineties' also reported that the proportion of skilled full-time female factory workers since 1973 to 1990 in all manufacturing industry has increased from 42.0 to 62.7%. Unskilled workers too grew from 46.0 to 60.0% while semi-skilled workers rise from 49.3 in 1983 to 53.7% in 1990. The limited data on the proportion of skilled and unskilled workers aren't much available based on age group.

Table 2.0: Malaysia - Percentage Distribution of Employed Youths by Occupation,

1990, 1995 and 2000

Occupation	1990	1995	2000
Professional, Technical and Related Workers	4.8	7.1	7.4
Administrative and Managerial Workers	0.3	0.7	0.9
Clerical and related Workers	10.3	14.4	14.2
Sales Workers	11.3	10.5	11.7
Service Workers	11.2	9.1	11.0
Agricultural, Animal Husbandry & Forestry Workers, Fishermen And Hunters	19.1	13.7	14.9
Production and Related Workers, Transport, Equipment Operators and Labourers	43.0	44.5	39.9

Source: Seventh & Eighth Malaysia 5 Year Plan.

The following chart displays that the total number of employed women workers in 2000 are only fifty percent (3235.5 thousand) of total men workers (6,086.2 thousand). The number of male workers in the production line is higher as well as women workers compared to other occupation. Only in clerical line women workers (571.5 thousand) are more than men (418.5 thousand). It is also interesting to note that number of female and male workers in the professional and technical and the service line are relatively at the same level compared to administrative, agricultural and production line, which has a wide gap. Once again it emphasis that the number of non-skilled and semi skilled workers are higher in number compared to those skill workers in Malaysia.

Source: Department of Statistics, 2000

Accessible data shows that efforts toward a proper planning and implementation of various programs to provide and supply necessary skills to youth are being conducted for more than a decade. According to the eighth (2001-2005) five year Malaysia plan, the government has reviewed it's National Youth Policy enacted in 1985 and replaced it with Youth Development Policy in 1997 in it's effort to bring forth the youths potentials especially those between the age group 18 to 25. The government has allocated about RM1, 045.8 to 2,741.6 million for youth programs in the country from 1991 to 2000. Institutions that provide skills training are from Manpower Department, Ministry of Education, Majlis Amanah Rakyat (MARA), Ministry of Youth and Sports, Johore State Welfare Department, Ministry of Agriculture, private institutions and other public training institutions. Between 1995-2000, private institutions have trained about 40,000 youths. It also reported that number of youth organizations has tremendously increased from 3,460 in 1990 to 9,000 in 1995 with membership increase from 500,000 to 1.8 million. They are all affiliated with Malaysia's Youth Council.

Among others leadership training has been given priority. About 60,000 (1990-1995) and 46,340 (1996-2000) youths have participated in the leadership training organized by various government agencies. Programs to encourage entrepreneurship has benefited 1,600 who received loan for their trading projects and also provided jobs for about 3,650 youths (1990-95). While another 16,970 youths has benefited from the similar program in the duration of 1995-2000.

Statistics from National Vocational Training Council (NVTC) under the ministry of Human Resources displays that from 1992 to 1996, total number off candidates passed the skills test administered by the NVTC at basic, intermediate and advanced levels has increased from 26,849 persons to 41,731 in 1995 but it dropped to 33,222 persons in 1996. Nevertheless, the number of candidates enrolled for basic level courses were much higher in that 5 years period, about 124,589 student compared to only 1,858 enrolled for advanced level courses.

Some of the skill programs or activity managed by the government as reported in both the five-year plans are Social Service Program, Youth Development Program, Asia Youth Ship (exchange program with countries like Japan and South Korea), Cultural Program, Sports Program, Skill Malaysia and Active Malaysia Program, Healthy Life-style Program, Rehabilitation Program and Skills Training in both public and private sector to increase job opportunities for youths besides informal short-term workshops and training to upgrade skills. Thousands of youths are reported have gained from all these programs.

According to the Manpower Department's Annual Report, it has increased it's students capacity from 4,000 to 17,000 students per year for various long term training via its 20 training institutions throughout out the country. The Department's Industrial Training Institute provides some basic 31 courses in 5 main field such as Mechanical, Production, Electrical and Electronic, Civil and Building and Printing. The courses take between 6 months to 2 years. The number of students enrolled with the Department's institution has increased from 2,704 in 1996 to 3,193 in 2000 and the highest enrollment was in 1999 with 3,479 students. The Department also conducts short-term courses as per the request of the employers from both private and public sector. In year 2000 alone about 304 courses were conducted for 5,614 participants compared to 4,273 in 1999.

In Year 2000, the Manpower Department has set up 4-Advanced Technology Training Centre to boost the number of skilled workers in the Labour Market. One of the training institutes under the Manpower Department is Centre for Instructor and Advanced Skill training which runs a course known as National Instructor Training Programme. It produces teaching forces in the skill training institutions needed for the country. In year 2000, 532 students are following the courses compared to 445 in 1999. Japan-Malaysia Technical Institute conducts technical and vocational training program using latest Japanese technology. In year 2000, it has been training 278 students compared to 135 in 1999.

The Human Resource Ministry set up skill Development Fund in December 2000 and its main purpose is to increase number of skill workers in accordance to the need for knowledge workers for knowledge economy. Most of trainees participating in the skill training are from rural and lower income group, thus the loan helps them to reduce financial burden of the families concern. Anyhow it only started its operation in January 2001. Under the scheme, the ministry plans to provide loan to those from public and private sector and also to those taking up part time or full time course. In 2001, it is expected around 15,000 trainees would apply for the loan.

The Malaysian government has also taken several steps to secure job to workers who have been retrenched. The Human Resource Ministry reported that with the help of Manpower Department and the Labour Department, about 75.23 % of workers retrenched and registered with the Department has been placed in alternative job in Year 2000 compared to 88.11% in 1999. According to the Manpower Department, out of 22,785 local workers retrenched in 2000, 6,694 workers registered with the Department. The Department able to find job for 4,917 workers. The number of workers retrenched in 1999 is much higher 35,457 and only 7,548 workers were successfully reinstated.

In 1998, the Ministry also introduced a scheme called Retrenched Workers Scheme, which has an allocation of about RM5 million. In year 2000, financial support was approved for 228 workers compared to 426 in 1999 to complete their training course in diploma and certificate level. To encourage more employers to send their workers for such training, since July 2000, the Ministry has increased its financial support 100% for those in the technical, computer and quality production field. The Ministry also introduced Training Support Scheme for small and medium size trading to encourage employers to send more workers for retraining to improve their skills. The scheme was started in August 2000 and since than 62 training center has been approved. Human Resources Development Council's data shows that the number of Employers registered with the Council especially in the Manufacturing sector has increased from 3,254 in 1993 to 4,393 in 1996. Similarly in Services sector though the numbers are small but they too have showed signs of interest with 778 in 1995 to 1,027 employers in 1996. These would help more employees of these companies to develop and build their carrier.

Despite of all these programs and planning, youth unemployment and number of skilled workers in Malaysia are relatively low compared to the number of production workers and labourers. Why? Are there not enough skill training programs or is it not reaching the grassroots? Is there too much of bureaucracy for one to apply for such courses or is it not affordable or is it ignorance on the part of the youths? Above all is it because the youths are unable to find a job that suits their choice or is it because of unsatisfactory pay, bonuses and work facilities or unreasonable demand from employers and overly strict rules and pressure at work place that has demotivated and distracted the youths from job market? Most of the unemployed youths are also in the secondary level education category, which doesn't guarantee employment. Perhaps, more efforts to place them in vocational education sector and setting up more youth skill training program in marginalised communities residential area (long houses, urban settlers, plantation, low cost housing flats and so on) would help the young ones to secure a decent job and a better future.

d) Labour Market Prospect

In the Eighth Malaysia Plan, the number of youths in Malaysia is expected to grow 2.6% a year from 4.37 million in 2000 to 4.98 million in 2005. Economic Report 2000/2001 forecast the economy to grow at 7%, employment is projected to increase by 6.2% from 8.999 million to 9.5 million in 2001. A significant proportion (80%) of the new jobs created will be from the main economic sectors of manufacturing, construction, wholesale and retail trade and the hotel and restaurant services.

The youths are expected to be more talented creative and innovative. The government plans to concentrate in bringing up youths with more positive values and to prepare them with knowledge that would ensure continuos development and economic growth. Emphasis on providing appropriate skills to face the challenge of globalization and development would be the government's main focus. The number of youths involved in professional and technical job category is expected to increase while youth's entry into the job market is believed to be deferred.

3.1 Working Conditions of Young Workers

a) Wages

Malaysia is still in the labour intensive phase of industrialization and it relies on labour intensive production methods and highly exports dependent. Thus, cheap labour policy has always been its tool to attract more foreign investment. Malaysia has also choose to import cheap labours from neighboring countries like Indonesia, Nepal, Bangladesh, and India. The action also caused intensive supply of unskilled workers in Malaysia and impedes wage increase in all those sectors that need unskilled workers.

Table 2.1: Malaysia - Household Ethnic Composition in the Group Earning Top 20%, Medium 40% and Lowest 40% in 1997.

Ethnic	Lowest 40%	Medium 40%	Top 20%
Bumiputera	70.2	55.6	37.3
Chinese	14.4	33.1	47.3
Indians	5.3	8.7	8.8
Others	10.1	2.6	6.5
Average Monthly Income (RM)	840	2,202	7,006

Source:Samsudin Hitam, Bumiputera's Achievement in Economic, 1999.

Table 2.2: Malaysia- Household Breakdown in Each Main Ethnic According to

Income Group, 1990 and 1997

		1990			1997
	B	C	I	B	C	I
Top 20%	13.2	34.1	21.1	12.9	33.2	24.1
Med. 40%	37.2	44.8	47.4	38.5	46.5	47.3
Low. 40%	49.6	21.1	31.5	48.6	20.3	28.6

Note: B (Bumiputera) C (Chinese) I (Indians)

Source:Samsudin Hitam, Bumiputera's Achievement in Economic, 1999.

It is very crucial for us to identify who make up the Malaysian society. If one takes the occupational structure of Malaysian in the year 2000, professional, technical workers and administrative & managerial workers make up only around 20% of the work-force compared the remaining big bulk which are production related workers, agricultural and service orientated workers who make up the remaining 80%.

In an article written by the late Ishak Shari on Malaysia's Social Agenda in the Globalization Era, he stated that the income distribution has taken 'U-turn' in Malaysia from 1990-1997. Gini Coefficient (Pekali Gini) used to measure the income disparity shows an increase from 0.445 in 1990 to 0.470 in 1997. The question of why income disparity is getting wider and wider since 1990 is answered by his hypothesis that the government's intention to integrate Malaysia's economy with global economy has boomed the industrial sector. More capital and technology intensive models of production needed to be encouraged. This has led to great demand for skilled labours while the demand for unskilled labours is countering a slower growth. Since the supply of skilled labours is limited so their income is increasing higher and higher compared to those of unskilled workers. Hence, the income disparity widens.

For the last few years, various Trade Unions and community organisations are raising issue of Minimum Wage but till to date the government of Malaysia is reluctant to legislate a minimum wage law. The idea of Minimum Wage was strongly opposed by Malaysian Employers Federation while Trades Union Congress says Minimum Wage would increase living standard of workers especially thousands of lowly paid wage earners like plantation workers, bus drivers and production workers.

In Malaysia, the highest number of workers are in the agricultural and manufacturing sector, followed by Wholesale and Retail trade, Restaurants and Hotels with each has 1,738, 1,333 and 1,218 thousand workers in 1990. The numbers has increased in 2000 to 1,187.7 thousand workers in Agricultural, Forestry, Livestock and Fishing, while 2,616.3 thousand workers in Manufacturing sector and 1,469.6 thousand workers in Wholesale and the other services. As mentioned earlier the number of youths employed are also in the same order as above as described in Table 1.6.

Table 2.3: Malaysia - Average Monthly Wages of Workers in Selected Sectors, Peninsular Malaysia. 1981-1990

Year	Rubber Estates	Manufacturing Companies	Construction Companies
	Nominal Real	Nominal Real	Nominal Real
1981	RM272 RM248	RM440 RM371	RM455 RM415
1990	RM353 RM253	RM657 RM471	RM734 RM527
% increase from 1981 to 1990	2 %	27%	27%

Real = 1980 dollars

Source: Manpower Resource Study for the Northern States. Final Report, Volume 1: Table 6.1 (RMA-Perunding Bersatu)

According to the president of Trade and Industry, Malaysia Tan Sri Kazumasa Suzuki, the cost of labour, particularly in the manufacturing sector is not a very significant factor because it contributes to no more than 10% of the total production cost (Business Times, 1996). That means the increase in wages is of little impact to capital. In a survey conducted by the Malaysia's Trade Union Congress (MTUC) via its unions in year 2000, shows that 46.2% workers are getting RM300 and about 30.8% earning about RM400 while 15.4% workers are earning an average of RM500 and the rest, 7.6% are at the salary level of RM200. MTUC's study on wage scales in 165 companies showed that even in major towns, unskilled general workers are paid as low as RM300 to RM350 per month. They conclude that 46.2% of the company's involved are paying a minimum wage below RM400 per month while 15.4% of the companies pay more than RM500. MTUC is seeking a minimum wage of RM900, which is justified with minimal need for survival. On the other hand, the government statistics department shows an average mean monthly gross income from 1995 to 1999 is about a minimum of 1,284 to 3,456 while expenditure per household is about 1,161 to 1,631.

Jomo K.S., 1994 quoted that an average monthly wage of all full time paid factory workers are RM463 in 1990 at current prices whereas those non-factory workers of all full time and part time earned RM1, 259. Malaysia's Economic Report 2001/2 says that the average wage per worker in the manufacturing sector increased to RM1, 455. Minimum monthly wages of RM325 for oil palm plantation workers were agreed when actually the workers are fighting for a monthly wage of RM750.00.

With the low unionization of labour force and as well as the absent of the independent democratic national union, has expose the workers into very weak bargaining negotiation power compare with other industry. With a labour force of about 9.6 million, only 8% of the workforce are unionized. Today, there are about 563 unions and total union membership is 734,037 but more male (63.7%) than female (36.4%) union members according to the 1999 figure. Hence, the position of the labour force in Malaysia is in the sadden condition. Some of the community organizers interviewed on the issue also related their concerns as follows:

· Currently due to US economic slowdown, we have around 1,000 to 2,000 workers being retrenched in a monthly basic. This year itself (2000), more than 10,000 have been retrenched. 80% of these workers are from the manufacturing sector. The manufacturing sector once again topped the number of layoffs with 53.8% or 45,000 workers in 1998. The MTUC plea for the government to set up a special retrenchment fund has fallen on deaf ears for the last 5 years. The following Table 2.4 provides the latest retrenchment figures in various sectors.

Table 2.4: Peninsular Malaysia- Retrenchment By Sector, 1999 & 2000

Sector	1999	1999
Manufacturing	19,791	13,019
Finance, Insurance, Real Estate and Business Services	2,583	3,948
Community, Social and Personal Services	1,691	84
Wholesale and Retail Trade, Restaurant and Hotel	4,114	1,788
Transport, Storage and Communication	681	699
Construction	2,433	1,182
Mining and Quarrying	348	200
Agriculture, Forestry, Livestock and Fishing	3,757	2,280
Total	35,398	23,200

Source: Ministry of Human Resource, Annual Report, 2000

· Another major problem is when a company closes down. The workers will be left in a lurch. The company Act considers workers as “unsecured creditors” and only gives priorities to unpaid wages only. Most times workers lose out in other bonuses and retirement benefits.

Other side effects:

· Workers threatened to be more disciplined, docile and obedient.

· Freeze in overtime, bonus and annual increment.

· Forced pay cuts and employers have abused freeze in bonus.

Young workers being the largest proportion of the work force are also seems to be in the largest segment of those in the medium and lowest income group as displayed in Table 2.0 and 2.1. Besides they are also experiencing great hardship when the companies are closed down or forced resignation or pay cut and voluntary retrenchment scheme are imposed on them. Employers Federation in Malaysia believe that the 'continuos economic development will inevitably improve the welfare of wage earners because the increased prosperity will make possible increase in wage." Unfortunately, in the decade proceeding the economic crisis, at a time when Malaysian companies enjoyed double-digit growth in profits, wages grew in double digits only for professionals and white-collar workers. General workers enjoyed an average wage increase of below 5%, a negligible amount taking into account inflation (Premesh Chandran, 1999). Based on the facts obtained, it indicates that contemporary skill training and better education attainment might be one approach for young workers to earn better income and the government must enact a minimum wage law for a stable social development.

b) Working Hours

Malaysia's Employment Act says that the maximum number of working hours permitted is 8 hours in one day or 48 hours in one week. At the same time under mutual agreement, a spread-over period of not exceeding 10 hours in a day is permitted. Further more with the written request from the Director General of Labour, an employer can enter a working contract to the maximum 12 hours a day or 72 hours per week. In Malaysia, shift work which means work need to be carried out continuously appears in 3 shift, usually it's from 7am to 3pm (1^st. shift), 3pm to 11pm (2^nd. shift) and 11pm to 7am (3^rd. shift). The law allows employers to enter contract of service which requires the employees to work more than 48 hours in any one week and more than 8 hours a day up to a maximum of 12 hours a day.

For young workers aged 15 to 16 years old, the Employment of Children and Young Persons Act, 1966 which allows light work in factory, offices, workshop, hotels and so on is permitted in any period of consecutive days to work for not more than 6 days. Besides the law also allows them to work not more than 7 hours a day or 8 hours if he is an apprentice.

Due to the loopholes in the law, employers using various tactics to exploit all young workers (15-34) to gain maximum profit in the name of productivity and quality by forcing the workers to work longer hours. This mostly happens in the manufacturing sector.

Many unpublished data and an informal interview and discussion with factory workers in Selangor by community organisations reveals the following on the issue of long working hours in Malaysia:

§ The state has played crucial role in facilitating the process of deregulate the labour law in order to provide so called attractive, cheap and competitive labor force for the sake of globalisation, EOI industrialisation process and the coming of the TNCs into the country. Especially, registration that is related to women was changed several times. Before the seventies, women were not allowed to work after 10.00 p.m. except in the essential services such as nursing. But, the law was amended in 1968 to allow women to work until 11 p.m. After that, the law was changed again (1970) to allow women workers to work 3 shifts in the TNCs with the qualification that the Minister deemed it would not cause inconvenience to these women workers. During the economic boom, the workers even asked to work during the rest day on Sunday and as well as public holidays.

§ Most workers have to sacrifice their rest hours and leisure, as they need more money to survive. Most workers do overtime and double jobs to maintain high cost of living or to maintain current lifestyles. It is common for workers to work 12 hours in a row. Practices such as 48 hours work in 4 days and 3 days rest day besides compulsory 12 hours working with forced overtime with only half an hour break is befalling in Malaysia. There are no suitable premises for relation either at work places during work-breaks. Even the usual rest days that falls on Sunday is becoming a working day. Any one other day in a week become a rest day while in some cases no rest day at all. Amendments have been made to the law to enable less restriction on shift work and calculation of hours of work. Number of annual leave granted to workers in Malaysia is quite low. Only about 8 days for those who worked less than 2 years and 12 days for those working 1-5 years and only 16 days for workers working more than 5 years. The employers are very stringent in even approving the annual leave instead the employers are manipulating the workers to take compulsory annual leave during the

§ The government has introduced 5 working days in a week (Saturdays are declared off day), which is not compulsory for all sectors. Only on the first and third week of a month, Saturdays are off day for government sector, which certain service sectors like banking department and semi government departments adopted. While many sectors still practicing the old system whereby Saturday is half-day working day. Unfortunately both the system is not being exercised in the manufacturing and production line except for those working in the office.

Adequate leisure and reasonable working hours is important to any young worker. It's is important for them to have the time to spend with their families and friends especially after spending long hours of tiring and straining working conditions. Usually leisure time is also used to acquire better education in various fields including cultural and other social activities, which establishes human bond and healthy human development. Denying the young workers right to a reasonable rest hours and leisure time might lead to other social illness as a diversion from the hectic and restless way of life.

c) Social Safety Net & Health

In cases of unemployment, sickness, industrial accidents and diseases or other incapacity, young workers should enjoy full social insurance protection. Social insurance protection should also be extended to any dependents of the young insured person (ICFTU, 1975).

In Malaysia, social security is accepted as protection which society provides for its members through a series of public measures either financed by federal taxation or compulsory contribution by employer and employee. Social Security is enforced through legislation in order to protect the population against economic and social distress. Malaysia's Employee's Social Security Act, 1969 was implemented in 1972 and it covered the whole of Malaysia in 1987. All firms throughout Malaysia employing one or more staff earning up to RM2, 000 are required to insure such employees with the SOCSO. Among others, the provisions of the act do not cover those earns above RM2, 000 a month, a domestic servant, any person detained in any prison, correctional school, all agricultural workers who are employed for cultivating and harvesting paddy. Currently amendments were made in the law to provide coverage for 'commuting accidents' SOCSO's main objectives are:

· Economic security by way of providing compensation;

· Provision of medical care;

· Rehabilitation (physical and vocational) to ensure that the worker returns to society and self reliant;

· Promotion of industrial safety and other activities in accident prevention.

The objectives are attained via Employment Injury Scheme and Invalidity Pension Scheme. Some of the benefits from the schemes are:

§ Temporarily disabled worker is given 80% of the average daily wage for each day disablement and 90% for permanently disabled cases.

§ Dependants of an insured employee who dies entitled to receive the dependent's daily rated benefits.

§ Funeral benefits and full medical benefits.

Number of cases under Social Security Organisation from 1997 to 1999 was 86,589, 85,338 and 92,074 cases. Is Malaysia's various industries provide jobs that are save enough for our young workers? Are sufficient safety measures being taken or are the young workers exposed to industrial risk? Based on the obtainable data from SOCSO annual reports, the number of accidents reported since 1990 shows an increase from 121,104 to 133,293 accidents in 1993 and then it starts to drop from 122,688 in 1994 to 92,074 in 1999. Whereas the number of accidents excluding commuting accidents also raised from 121,104 accidents in 1990 to 124,503 in 1992 and after that it drops from 121,593 in 1993 to 18,309 in 1999. But it is quite alarming when the number of commuting accidents reported are increasing every year. From 5,516 accidents in 1992, it reached 14,721 in 1995 and further up to 18,309 accidents in 1999. The drop in the number of overall accidents reported is a good sign, nevertheless the total number of accidents reported in Year 2000 has increased to 110,030. It means about 301 industrial accidents occur a day and every hour 12.5 accidents occurs and it is also reported that at least 3 deaths happens a day (Arutchelvan, 2000).

The highest number of industrial accidents is in the manufacturing sector for the past decade. In 1993, 71,688 (53.3%) industrial accidents occurred in the manufacturing sector compared to 14,744 reported accidents in 2000 with 112 death. Unfortunately most of the young workers are also in the manufacturing sector. Table 2.3 provides data on industrial accidents reported to the Social Security Organisation and Labour Department from 1992 to 1996.

Table 2.5: Malaysia- Rates and Number of Industrial Accidents Reported by Type of Accidents, 1992 - 1996.

Year	Total	Fatal	Disablement	Accident Rate per thousand Workers	Fatality Rate per million workers.
1992	132,982	888	132,094	19	125
1993	134,549	795	133,754	18	107
1994	125,506	785	124,721	16	103
1995	117,231	1,167	116,064	15	147
1996	108,418	1,308	107,110	13	169

Source: Social Security Organisation and Labour Department, Ministry of Human Resources.

Table 2.6: Malaysia- Death Cases and Permanent Disablement Cases Settled,

By Age and Sex

Age Group	Male	Female
	1995 1997 1999	1995 1997 1999
Below 20	105 198 (1,004) 99 (719)	5 23 (134) 14 (103)
20-24	162 345 (1,922) 196 (1,301)	11 28 (220) 14 (164)
25-29	135 216 (1,601) 128 (1,209)	8 13 (226) 18 (155)
30-34	83 135 (1,371) 113 (1,095)	6 9 (285) 12 (184)
Total	485 894 (5,898) 536 (4,324)	30 73 (865) 58 (606)

Note: Figures in the red shows Permanent Disablement Cases.

Source: SOCSO

Even though, the total number of young workers (subject matter) involved in the industrial accidents is not available, number of reported death cases settled by the SOCSO as stated in Table 2.4 tells that at least three young workers are facing death at work place in a day and more than 20 young workers are permanently becoming disabled in a day due to industrial accidents. Most of the injuries suffered by the workers are on their upper limb (about 45%) and lower limb (about 25%), followed by head injury, about 15.4% in the 90's. SOCSO record shows that most of the industrial accidents happens because the workers stepped on or struck by objects (about 40%), followed by fall of persons (about 20%) and being caught in or between objects, around 9.5%. The record on the industrial accidents reported since 1992 to 1996 also shows that an average of 2.5% (about 3,000 workers) a year are exposed to harmful substances and an average of 3% (about 4,000 workers) are injured due to exposure or contact with high temperature. While about 3.5% workers are injured due to over-exertion or strenuous movements and another 3.2% injured due to exposure to or contact with the electricity.

The government has legislated Occupational Safety and Health Act in 1993 besides setting up a National Institute of Occupational Safety and Health to educate and monitor health and safety on the job are given priority by the employers and employees. Anyway, the statistics indicates that the arising number of registered employers in Malaysia from 274,017 in 1995 to 385,916 in 1999 are not taking enough effort to develop and implement comprehensive safety procedures and programs at the workplace to reduce accidents, deaths and injuries.

An unpublished data on women workers reveals that many women workers from rural areas have to adapt to their new work, strict regime of work, shift work in the urban area. Besides, long working hours and the repetitive and fast work has caused pain in certain part of their body. Such as back pain, eye problems, headache, miscarriage, breathing difficulties etc. are the sickness faced. But it is always being not regard as occupational disease and no medical protection. Furthermore, the education of the chemical and risk hazard is not being given properly to workers.

According to the statistics department, number of medical benefit recipients in 1999 is 209,821 persons compared to 196,668 persons in 1998. The Social Security Fund is increasing every year with recorded amount of RM4, 463,988,313 in 1995 to RM7, 912,086,558 billion in 1999 as well as the investment quantum and the returns (SOCSO Annual Report, 1999). It suggests that SOCSO has the capacity and capability to be more efficient in reducing the number of industrial accidents in the country especially taking into consideration that more young people are becoming the victim of growing industrial hazardous.

The Workmen's Compensation Act 1952 requires all employers engaging less than 5 employees to insure such employees with a Workmen's Compensation insurance policy to ensure the employees receive a reasonable compensation as a result of any accident that may occur. Since SOCSO covers most of the workers, it is believed Workmen's Compensation Act will eventually be phased out. Under the Act, it provides compensation of about RM14, 400 or 45 months earnings to the employees' dependants in the event of his/her death. For temporary disablement, 1/3^rd of the workers monthly earnings is payable until his recovery or for 5 years. In the case of permanent total disablement, compensation payable is 60 months earnings for those 18 years of age and above while for those 16 years of age and below 18 years, 84 months earnings or a maximum sum of RM19, 200. Number of cases under Workmen's Compensation Act was 2,460 in 1997 and 3,148 cases in 1999. The figures mainly reflects industrial accident cases which involve foreign workers.

The Employee's Provident Fund (EPF) is also another National Social Security Organisation that plays key role in providing retirement benefits for members. The EPF Act 1991 makes it compulsory for all employees and employers to contribute towards the provident fund and that such contributions are payable to the employees in full on reaching the age of 55 years. All employers and employees have to contribute 12% and 10% of the employees' monthly wages respectively, to the fund. Unfortunately, it does not compulsory covers employees under 16 years of age and domestic servants. Only an employee who is 18 years of age or above can nominate any persons to become his beneficiaries. The EPF savings (from Account II) can be withdrawn for the purpose of purchasing a building or house. Recently, the expectation of the scheme to provide full-scale retirement benefits and to protect the members' fund is shattered when the government shows more interest in protecting the employers rather than serving the interest of the workers.

Some major issues of concern has been:

i) Drastic reduction of death and incapacitation benefits

ii) Low dividend and involved in rescue mission

iii) Government decision to reduce workers contributions to the EPF to help business

iv) EPF withdrawal for computers and health

i) Drastic reduction of death and incapacitation benefits

With effect from 1^st. July 2000, EPF has reduced the death and incapacitation benefits from a minimum of RM 1,000 and maximum RM 30,000 to a flat rate of RM 2,000.

An example is as below:

If Simon contributes EPF since at the age of 18 and if death/incapacitation occurs at the age of 35 and he has a EPF credit of RM 10,000, we will entitled RM 4,716 on death or if incapacitation, he will receive RM 13,899. But under the present entitlement, he will only receive RM 2,000.

The deduction and EPF reasoning that this decision is made because only the rich benefit is not correct and clearly demonstrates EPF’ uncaring and inconsiderate attitude.

Table 2.7: Malaysia- Age become EPF member: 18 years.

Death/Incapacitation at the age 35

EPF CREDIT	Entitlement prior on death	If Incapacitation (before)	Present Entitlement
RM 20,000	RM 9,434	RM 27, 778	RM 2,000
RM 10,000	RM 4,716	RM 13,889	RM 2,000
RM 5,000	RM 2,358	RM 6,944	RM 2,000

Table 2.8: Malaysia-Age became EPF member: 18 years. Death/Incapacitation at the age 25

EPF CREDIT	Entitlement prior on death	If Incapacitation (before)	Present Entitlement
RM 10,000	RM 15,217	RM 43,750 (max 30,000)	RM 2,000
RM 5,000	RM 7,608	RM 21,875	RM 2,000
RM 3,000	RM 4,565	RM 13,125	RM 2,000
RM 2,000	RM 3,043	RM 8,750	RM 2,000

Source- MTUC

ii) Low dividend and involved in rescue mission

Of late, rate of dividend declared by the EPF has been low. Why is this so when during the economic recession in 1987, EPF still managed to give an 8.5% dividend? The low dividend has been attributed to losses incurred by EPF. EPF decision to buy Time Dotcom and in other rescue missions such as Bakun, United Engineers (11% stake), scandalous PERWAJA (710 million) and KLIA (1 billion) has some of the answers for this low dividend. EPF has forgotten that it is accountable to its members.

Table 2.9: Malaysia- EPF Declining Dividend Rate, 1991-2000

Year	1991	1992	1993	1994	1995	1996	1997	1998	1999	2000
Dividend	8.00	8.00	8.00	8.00	7.50	7.70	6.70	6.70	6.84	6.00

iii) Government decision to reduce workers contributions to the EPF to help business

Another recent decision to reduce workers contribution from 11% to 9% was done purely in the interest to boast the interest of the business classes. Though majority of the workers was unhappy with this reduction, EPF maintained and only after much protest were workers allowed to maintain at 11% contribution. Even for workers to maintain at their current rate, they had to undergo difficulties like filling up the form 17A.

iv) EPF withdrawal for computers and health

Recent decision like allowing contributors to withdraw money for health and computer though popular makes a mockery of our social security scheme. Health and education is the responsibility of the state.

EPF being the largest provident fund in the country with membership 9.7 million and 13.8% rise in contributions to RM172, 159 million and a 14.5% increase in income as reported by the Finance Ministry in it's 2000/1 Economic Report should play a more vital role in guaranteeing and providing social security and social protection to million of young workers in Malaysia who might not have any other savings besides their EPF money. Viewing the workers intolerable working conditions, higher unemployment rate among young workers and higher number of unskilled young workers in the labour market and their job security being threatened, EPF has full accountability to protect and invest in projects that would benefit the growing number of young workers in Malaysia.

Health -healthy people are the greatest asset of the nation and medical care must be provided to all people who are in need. It further declared that any attempt by the government to privatize medical services would be opposed.

Malaysia boasts of having very good health care system since independence in 1957, it was the role model for many developing countries. 1995 and 200 demographic indicators show life expectancy for male are 69 and increased to 70.2, female 73.9 to 75.0 years. Infant mortality rate for 1995 is 10.4 and reduced 70 7.9 per thousand populations while toddler mortality rate has dropped from 0.8 to 0.6 per thousand populations.

Table 3.0: Malaysia- Deaths by Specific Age Groups and Age Specific Mortality Rate, 1998

Age Group	Estimated Population ('000)	No. of Deaths	Mortality Rate Per 1000 Population
0 - 4	2,576.3	5,902	2.29
5 - 9	2,523.9	893	0.35
10 - 14	2,447.1	1,020	0.42
15 - 19	2,243.1	2,007	0.89
20 - 24	2,087.0	2,317	1.11

Corporations and privatization of the health system is something, which just in our corridors. The process of privatization has been taken place in stages and the future does not look bright. The recent privatization of General Medical store to a subsidiary of Renong (Southern Task Sdn. Bhd.) has increased prices of medicine at governmental hospital to 230%. The price of morphine has increased ten times more.

The privatization of 5 supporting services (laundry, cleaning, maintenance, waste disposal) to Mediserve, Radicare and Tongkah in 1997 has increased the cost of the services from RM 140 million in 1996 to RM 450 million in 1997. Taking National Heart Institution (IJN) as an example of a corporatised hospital, several alarming findings are that there is separate waiting list for paying and non-paying patients whereby paying patients get faster treatment. Imagine if the whole health system is corporatised. We will then have several classes.

Government statistics shows that average monthly expenditure per household of 0-8 person on Medical Care and Health expenses has increased from RM22 in 93/94 to RM31 in 98/99 while in urban area it has increased to RM40 in 98/99. If the government continues with it's privatization plan, it would make the poorer sectors of the population including young workers whose wage is not much, to bear the increasing medicine and health care costs. The government should make Health Care System affordable and accessible to all Malaysians irrespective of economic status, it shouldn't further burden the people who are already struggling with the current high cost of living standard.

4.1 Social Problems and Young Workers

a) HIV/AIDS

It is the most formidable epidemic in modern history gaining momentum in Malaysia. Malaysian Aid Foundation (MAF) proclaims that more than 80% of People Living with HIV/AIDS in Malaysia are below 39 years old. The immediate impact of HIV/AIDS is a decline in the quality of the labour force. It further said that a significant reduction in the number of skilled workers, which includes professional knowledge workers, retards economic development. It is a major concern of all that the age group of 20 - 39 years old constitutes the largest proportion of those afflicted with HIV infection. This age group is the nation’s main source of manpower and is supposed to be the most productive and contributing towards the economic development of the country. As women become a more significant part of the HIV/AIDS statistics, the infant mortality rate too has increased, thus multiplying the effect on the next generation of workers. If the rate and trend of HIV infection continues, it will critically affect our nation’s main source of manpower, which in the long run will affect the economic development of the country. Our aim of having a healthy and caring population would be marred by a high prevalence of this dreaded disease. Some of the impact of HIV/AIDS epidemic to our economic is described as follows:

Ø HIV/AIDS reduces our national potential.

For a person living with HIV/AIDS, the cost of treatment can be some RM2000 a month for life, on top of rent, food, transport and education. Barely affordable! As families lose breadwinners, women and children are forced to work. The potential for young people to advance their education and contribute to nation's development is curtailed. No multinational manufacturers would choose to invest in a country with growing number of HIV/AIDS problem. The depletion of manpower and the ugly image of HIV infection in our country will scare off potential foreign investors and also affect the national tourism industry. The burden of caring for the sick will also increase and this will cause a severe strain on our economy.

Ø The consumer Market is reduced.

HIV/AIDS people are also consumers. More and more funds are used for treatment, less is available to spend on essentials or luxuries. In Malaysia, survival time of a person with HIV/AIDS is shorter due to the lack of access to life-extending drugs. More than 30,000 Malaysians are already on this 'endangered consumer' list.

As at December 2000, Malaysia is reported to have 38,044 People Living with HIV/AIDS since the first reported case in 1986. 12 people are reported to be testing HIV-positive every day. 82% of total HIV-positive cases are people between 20 and 39 years of age. 4, 649 people in Malaysia have developed AIDS while 3, 538 have dies. The majority of the cases involve males aged 19-39 but the number of females is in increasing.

The following Table 3.1 shows that the unemployed persons are the highest with the HIV infection. It suggests perhaps a longer duration of unemployment and income insecurity has led to frustration, depression and inferiority among the unemployed that lead them to use drug which finally causes HIV transmission. These cases of HIV infection which were detected were mostly due to intravenous drug use (IDU) which constitutes 78.06% of the total transmission risk factors.

Table 3.1: Malaysia- HIV Infection, AIDS Cases and Deaths Reported in Malaysia

(1986-April 2001)

Risk Factor	Classification	CUMULATIVE TOTAL
		HIV Infection		AIDS Cases
		Numbers	%	Numbers	%
Gender	Males	37,891	94.6	4750	93.1
	Females	2,158	5.4	353	6.9
Age Groups	< 2 years	76	0.2	12	0.2
	2 - 12	209	0.5	76	1.5