Report Says Over 1,600 Malaysians Lose Their Jobs Every Month
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According to The Malaysian Insight, a shocking number of 13,099 Malaysians lost their jobs from January to August this year!
The main reason for these layoffs is due to companies having to cut cost in an unpredictable economy. There have already been some high-profile cases reported in the news such as Utusan Malaysia itself offering VSS (voluntary separation scheme) to its 1,300 workers, 20,000 jobs at risk due to MRT2 contract termination at Gamuda, and Western Digital's closure of it's PJ factory affecting 3,000 local employees.
An average 1,625 Malaysians lost their jobs every month for the first eight months of 2018. However, this is lower compared 35,000 Malaysians who lost their jobs in 2017.
The economy is expected to remain weak for the rest of the year, and more layoffs are expected.
Matthew Oxenford, an economic and finance analyst from Global Chatham House said this is mainly caused by the sluggish global and domestic economy. He also added that even though the numbers have decreased, total debt and rate of unemployment is still way higher compared to before the economic crisis.
He also said the economy is expected to stay weak for the rest of the year, and warned that more layoffs are expected. Earlier this year, The Sun Daily reported that 50,000 Malaysians are expected to be laid off.
The president of the Malaysian Trades Union Congress (MTUC), Abdul Halim Mansor blamed the political instability for the slow economy as business owners have been unable to make business and expansion plans for the year.
He also urged the government to stop politicking and to focus on developing the country and prepare for the future.