Syed Hussain Syed Husman, President of the Malaysian Employers Federation. (Photo: bernama.com) Kuala Lumpur (VNA) - The Malaysian Employers Federation, the nation’s largest employers' group, fears that up to 60,000 people could lose their jobs this year, double the yearly average of the past, its President Syed Hussain Syed Husman has said.
The manufacturing and construction sectors are projected to feel the largest impact of job losses. However, the Federation of Malaysian Manufacturers (FMM) predicted that the job market will remain steady this year with a recovery of labour market. The employment rate is expected to decrease to 3.6% in December.
According to Syed Hussain, the unemployment rate will depend on the economic situation, particularly the performance of small and medium size enterprises (SMEs) this year.
Around 98% of businesses in Malaysia are classified as SMEs, thus the government's assistance is important in helping these enterprises weather the impacts of the COVID-19 pandemic.
Syed Hussain anticipated that the manufacturing and construction sectors will experience a decline in growth, while service and retail businesses may not achieve positive growth as they rely heavily on both domestic spending and international tourist arrivals.
The Central Bank of Malaysia estimated that the economy will grow between 4%-5% this year.
FMM President Soh Thian Lai said the federation is not expecting significant layoffs this year, noting that Malaysia's growth rate of 8.7% last year has reassured the business sector.
With continued efforts by employers to retrain and upskill existing workers, and government support to assist the unemployed to get the right skills to be gainfully employed, the labour market will remain resilient and strong in 2023, he said./.
