MANY people who lost their jobs last year because of the sluggish global economic outlook have found employment in other industries such as electrical and electronics (E&E), medical devices, and machinery and equipment, which continue to show steady growth.
International Trade and Industry Minister Datuk Seri Mustapa Mohamed said this was due to continuous global demand for mobile devices, storage devices, embedded technology and the Internet of Things.
“We acknowledge that there has been some retrenchment in 2016 but the number is not alarming.
“While the extent of uncertainty complicates the already difficult task of economic forecasting, we could expect the Malaysian economy to continue its steady growth trajectory between four per cent and five per cent this year,” he said.
Mustapa said a number of retrenched workers had been rehired or found new jobs as a result of the expansion of other businesses.
“Therefore, we need to focus more on improving the mobility of labour to help workers transition across industries,” he said.
Labour Department figures show that 22,079 workers in the banking and financial sectors were retrenched in the first eight months of last year.
A total of 35,028 were retrenched from January to November last year and the majority were Malaysians.
Of this figure, almost 55 per cent went through normal retrenchment, while the rest lost their jobs through a voluntary separation scheme (VSS).
On the investment front, Mustapa said the government would continue to attract more companies to set up manufacturing facilities in the country and encourage those already here to expand their operations.
“We also expect companies operating in Malaysia to continue to add to their headcounts.
“For example, companies such as Osram, Inari, Hewlett-Packard and TF-AMD have announced that they will increase hiring as part of the expansion plan to meet rising demand.”
In neighbouring Singapore, the news is not all that rosy.
It was reported that the number of workers laid off in Singapore hit a seven-year high in the first nine months of last year — the highest since the global financial crisis in 2007–2008.
Figures released by Singapore’s Ministry of Manpower (MOM) showed that 13,730 workers were laid off in the first nine months of last year. During the same period in 2015, 10,220 lost their jobs. The figures last year were the highest since the first nine months of 2009, when 21,210 workers were laid off.
Seventy-three per cent of Singaporeans who were laid off were in the professionals, managers, executives and technicians (PMETs) category.
Those with tertiary qualifications made up the bulk of those retrenched.
Mustapa said the government would continue to invest heavily in infrastructure and other enablers to support economic activities.
“The outlook is not as gloomy as feared. There has been uncertainty in investment and trade, due to factors, such as rising protectionism, the state of the Chinese economy, geopolitics and currency volatility.”
On Jan 5, Treasury secretary-general Tan Sri Dr Mohd Irwan Serigar Abdullah said the ringgit was expected to rebound by the middle of this year.
Concurrently, Mustapa said foreign investors had expanded their operations in Malaysia. He said the integration of technologies from these companies would provide more job opportunities for local workers, especially in research and development.
So, just what does 2017 hold in store for Malaysian employees?
Malaysian Employers Federation (MEF) executive chairman Datuk Shamsuddin Bardan said despite talk that thousands more were set to lose their jobs this year “the situation was still under control”.
“Right now, the unemployment rate is still under control at 3.5 per cent. If it hits four per cent, then that’s a different case.
“So, all in all, the unemployment issue is not a serious one. For those who were retrenched, there are a lot of government training programmes to join.
“With all this, I am confident that we will not face any difficulties in 2017.” Reporting by FAREZZA HANUM RASHID, LAILI ISMAIL, ARFA YUNUS and HALIM SAID