While the economy is on recovery, supported by the resumption of business operations following the start of the Recovery Movement Control Order (RMCO) in June, unemployment numbers remained high.
Here's the latest on the labour market in Malaysia:
- According to the Department of Statistics Malaysia, Malaysia’s unemployment rate rose by 0.1 per cent month-on-month to 4.7 per cent in October 2020.
- The number of unemployed persons went up by 1.5 per cent to 748,200 persons compared with September 2020.
- As businesses continue their operations under the Conditional Movement Control Order (CMCO), employment-to-population ratio rose to 65.3 per cent in October.
- The number of employed persons who were temporarily not working increased to 183,600 persons against September 2020 (100,700 persons). The highest number ever recorded was in April during the early period of the MCO at 5.9 million persons.
- MIDF Research predicts Malaysia’s unemployment rate to be around 4.3 per cent in 2020 as compared to 3.3 per cent last year with softer export growth in recent months due to resurgance of COVID-19 cases in key export markets such as Europe, the United States and the United Kingdom that could possibly hurt trade outlook as well as hiring plans.
- A rising trend of new COVID-19 cases in Malaysia could also pose a challenge for people to enter the job market as demand, particularly from the services sector, could weaken again.
- Economic recovery looks promising as compared to when unemployment was at an all-time high at 5.3 per cent in May 2020 as businesses have gradually reopened following easing of MCO restrictions.
The National Employment Council
In tackling unemployment, the government has formed the National Employment Council (NEC).
- Minister of Finance, Tengku Datuk Seri Zafrul Tengku Abdul Aziz announced the formation of the council when presenting the Budget 2021 on November 6.
- The council promises to coordinate various initiatives across ministries and agencies to tackle unemployment and create over 500,000 new job opportunities.
- It will also focus on skills development and retraining programs to generate new job opportunities, involving the private sector and skilled groups to assist the government in achieving its goals.
- The council, chaired by Prime Minister Tan Sri Muhyiddin, had its first meeting virtually on Dec 10.
- The council members include Senior Minister of International Trade and Industry Datuk Seri Mohamed Azmin Ali, Senior Education Minister Senator Dr Radzi Jidin and Human Resources Minister Datuk Seri M. Saravanan as well as Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz, who is also the alternate chairman of the NEC.
- The NEC will also be supported by a special high-level task force to be chaired by the Chief Secretary to the Government Tan Sri Mohd Zuki Ali who will coordinate five special task forces, namely on National Education; Technical and Vocational Education and Training (TVET), Human Resources and Entrepreneurship, Real Economy, and Deeptech and Future Skills.
Muhyiddin recently said although he was aware that the target could be quite difficult to achieve, the government had outlined various proactive measures, including offering tax incentives to attract foreign investors.
“It is now rather difficult to find investors even though Malaysia prior to this had been the country of choice because we have good infrastructure facilities, a large workforce, highways, industrial sites and proper utilities.
“So, if we do not work hard now and take bold steps to offer for more incentives, they will not invest here because the whole world at this time is also sourcing for investments," he said.
He also urged the Human Resources Ministry and other relevant ministries to utilise the RM2 billion fund provided by the government to train more young people, especially skills training.
For further information, visit MyFutureJobs portal, a one-stop centre for employment-related initiatives.
