MYAirline workers are insured in case of airline collapse, minister confirms
Hundreds could be affected if company folds due to continued financial pressure
MYAirline workers are insured in case of airline collapse, minister confirms
INSURANCE NEWS
By Kenneth Araullo
17 Oct 2023

Malaysian human resources minister V. Sivakumar confirmed that over 500 employees of low-cost airline MYAirline are set to benefit from the Employment Insurance System (SIP) administered by the Social Security Organisation (Perkeso) should they be terminated.

The affected workers will be eligible for the Job Search Allowance (EMP) as part of the SIP, provided their contribution records meet the stipulated eligibility criteria.

“These workers will receive income replacement for a period of three to six months while finding a new career,” Sivakumar said in a Malay Mail report.

Sivakumar said that the ministry, in collaboration with Perkeso, closely monitors unfolding developments to promptly address all matters pertaining to the welfare of affected workers.

Last week, MYAirline announced the suspension of its operations, citing financial constraints as the underlying reason for the decision.

Transport minister Anthony Loke expressed disappointment over the airline's abrupt move, considering its potential adverse impact on the country's reputation, especially concerning international passengers affected by the sudden suspension.

Elsewhere in the country, Prime Minister Anwar Ibrahim has said that there has been no abuse of customer data under a closely scrutinised social insurance scheme.

What are your thoughts on this story? Please feel free to share your comments below.

Related Stories
Free newsletter

We'll keep you up-to-date with the latest breaking news, cutting edge opinion, and expert analysis affecting both your business and the industry as whole.

Free newsletter

Our daily newsletter is FREE and keeps you up - to - date with the world of Insurance. Please complete the form below and click on subscribe for daily newsletters from IB ASIA.