Kuala Lumpur (VNA) - The number of workers laid off in Malaysia rose 47% in the first quarter of 2026 from a year earlier, with about 24,100 people losing their jobs, according to data cited in a report by Hong Leong Investment Bank (HLIB).
The report, based on figures from Malaysia’s Social Security Organisation, showed layoffs peaked in January with around 10,700 cases before easing to 7,500 in February and 5,900 in March. Despite the slowdown toward the end of the quarter, the total remained significantly higher than the roughly 16,500 layoffs recorded in the same period of 2025.
The manufacturing sector has emerged as the most vulnerable segment of the labour market, reflecting its heavy reliance on global trade and external demand. Job cuts were also concentrated in wholesale and retail as well as logistics-related sectors, signalling broader economic restructuring.
HLIB said the wave of layoffs was partly driven by global economic uncertainties and geopolitical tensions, which have forced businesses to adjust to an increasingly volatile operating environment.
Analysts said major economic hubs such as Kuala Lumpur and Selangor are often the first to feel the impact of corporate restructuring. Other states including Penang and Johor also face rising risks due to their dependence on export-oriented industries, particularly the electronics sector, which is sensitive to fluctuations in global technology demand.
Despite the increase in layoffs, Malaysia’s labour market has remained relatively stable, with the unemployment rate holding steady at 2.9% for four consecutive months. Data indicate that some displaced workers have been absorbed by other sectors.
Hiring activity also remains robust, with about 107,000 job vacancies recorded in March 2026, mainly in the services and construction sectors.
However, analysts warned that downside risks persist, particularly for export-oriented industries that remain vulnerable to external shocks in the months ahead./.
