The new year has just begun and we are already given the unpleasant news about the looming retrenchment in the Malaysian job market this year.
The Sun Daily reported earlier this week that 50,000 Malaysian employees are expected to be laid off in 2018, with the main sector to be affected will be manufacturing, according to Datuk Shamsudin Baradan, executive director of the Malaysian Employers Federation (MEF).
Other sectors that will also feel the pinch are the insurance, banking and retail industries as well construction.
Several factors that are affecting the job market this year as reported by the the English daily are:
- the levy imposed on employers for hiring foreign workers
- the newly implemented Employee Insurance Scheme (EIS)
- the increase in the number of days for maternity leave from 60 days to 90 days
- the increase dependency on automation as well as information technology
- the increase in wage cost that is resulting in multinational corporations involved in labour-intensive industries moving out
Furthermore, a review of the minimum wage scheduled in July will also have an impact on employers hiring workers, according to Datuk Shamsudin.