Number of employees who lost jobs at normal level — Riot
PUTRAJAYA: The number of employees who lost their jobs last year is still at a normal level, not as depicted by the Malaysian Employers’ Federation, said Human Resources Minister Datuk Seri Richard Riot.
He said the MEF’s allegations that more than 50,000 employees lost their jobs in 2017 could have been made without referring to correct sources as the statistics of the Labour Department (JTK) showed otherwise.
“I am not sure where they obtained the figures, so I think it is just a projection by the MEF.
“Based on studies done by the JTK, only about 35,000 people lost their jobs, and this is normal,” he said when commenting on a statement by MEF that more than 50,000 employees were expected to lose their jobs last year because of a sluggish economy.
Speaking in a press conference held after presenting Employment Insurance System ( SIP) interim aid to the first eight applicants here yesterday, Riot said the situation would be balanced up by the 300,000 jobs which will be created this year.
The manufacturing sector is expected to provide the most number of jobs, followed by the plantation and service sectors, he said.
According to the JTK report, between January and December 2017, the services of 35,097 workers were terminated, a drop of 6.2 per cent compared to the 37,699 in 2016.
Of this, the services of 31,159 employees or 89 per cent were terminated through the normal process while 3,938 employees or 11 per cent were terminated through the voluntary separation scheme ( VSS) with the highest number, 25,370 ( 72 per cent), being in the manufacturing sector.
On the SIP, Riot said the scheme was an assurance that employees who had lost their jobs would get immediate assistance, and 175 applications had been received since it was implemented on Jan 1.
Under the Insurance System Act 2017, individuals who lost their jobs were eligible for an interim benefit of RM600 for a maximum period of three months, but payment will be stopped once the applicant gets a new job. — Bernama