‘Forecast of 50,000 to lose jobs untrue’

> Figure more likely to be 30,000, says ministry

PUTRAJAYA: The prediction by the Malaysian Employers Federation (MEF) that about 50,000 Malaysians will lose their jobs this year is inaccurate, said Human Resources Minister Datuk Seri Richard Riot.

He said the number of people who could face retrenchment would be the same as last year.

“According to our research, only about 30,000 would be losing their jobs. It is normal for the Malaysian economy,” he said after an event to present the first interim cheque under the Employment Insurance System (EIS).

Richard said Malaysia is on the right track of human development and the situation is not as claimed by the federation.

“In fact this year, 300,000 jobs will be created in the manufacturing, plantation and services sectors.”

Earlier, Social Security Organisation (Socso) EIS chief Datuk Mohd Sahar Darusman said the unemployment rate in Malaysia was still low at 4%, which is normal for a developing country.

Last year, an estimated 36,000 people were retrenched or lost their jobs and previously, it never exceeded 40,000 a year.

“In 2017, about 36,000 people lost their jobs, which makes up about 4% of those unemployed. This is normal in the economy of a developing country.”

He also said Socso had received 175 applications for interim benefit payments from individuals who lost their jobs this year, since the Employment Insurance System Act 2017 (Act 800) came into force on Jan 1.

The interim benefits are funded by the government with an allocation of RM122 million that is being channelled to Socso, and a 0.2% contribution made by employers and a 0.4% by employees.

Mohd Sahar said the percentage of contribution is the lowest in the world and EIS payments can be sustained for only about five years.

When contacted, MEF executive director Datuk Shamsuddin Bardan said the figure of 50,000 facing retrenchment was just an estimate and may change from time to time.

He said for example, it is only the start of the year and already one bank is offering a mutual separation scheme to its employees.

“We just gave an estimate that may or may not occur. The year is just starting now and we don’t really know the future.”

He said other factors such as the minimum salary revision in the middle of the year will also have an impact on business.