The support is from the Employment Insurance Scheme (SIP) worth 70 million MYR (over 16 million USD).
The scheme is scheduled to be applied in 2018, stated Malaysian media.
Speaking on May 1 on the occasion of International Labour Day, Malaysian Prime Minister Najib Razak said that there are about 6.5 million workers in the private sector.
If workers are laid off involuntarily and looking for new ones, they will receive temporary financial aid to maintain living conditions for themselves and their families. Besides, they will be helped with job-seeking programmes and vocational training courses.
According to Najib, the scheme is part of perennial measure of the Government to ensure sustainable economic development in recession.
Earlier, he said that the Government is striving to improve people’s income through various education and training programmes like the Small Retailer Transformation Programme (Tukar) and start-ups scheme for local businesses.