5,900 layoffs in a month: MCA calls for urgent govt response

 

MCA has called on the government to implement immediate and targeted measures to address rising layoffs, warning that early signs of labour market strain are becoming increasingly evident.

Its deputy president, Datuk Dr Mah Hang Soon, said recent job losses highlighted the need for timely and actionable policy responses beyond planned support initiatives.

He was responding to remarks by Human Resources Minister Datuk Seri R. Ramanan, who said the ministry would roll out targeted assistance programmes amid global economic uncertainty linked to geopolitical tensions.

While welcoming the announcement, Mah noted that more concrete and time-sensitive measures were needed.

“Announcements alone are not enough. The government must move quickly to implement clear and effective policies to protect workers,” he said in a statement.

Mah further pointed out that about 5,900 Malaysians were laid off in March alone, with Selangor and Kuala Lumpur among the hardest hit.

“This reflects not only the vulnerability of our economic structure to external shocks, but also gaps in existing intervention mechanisms,” he said.

Mah outlined five key proposals for the government to consider.

First, he called for the expedited revision and implementation of the Employment Insurance System (EIS), including clearer timelines, broader coverage, higher assistance payouts and extended support duration.

“The EIS must provide meaningful protection for workers navigating periods of unemployment,” he said.

Second, he proposed the establishment of an emergency employment stabilisation fund to support industries severely affected by supply chain disruptions, particularly manufacturing and export-oriented sectors.

“Wage subsidies and workforce retention measures can help prevent large-scale layoffs,” he elaborated.

Third, the MCA leader stressed the need to strengthen reskilling and upskilling programmes to better align with market demands.

“Training initiatives must be designed in collaboration with industry players, particularly in high-demand sectors such as the digital economy, green technology and automation,” he said, adding that training allowances should be provided to support displaced workers.

Fourth, he proposed the development of a real-time labour market early warning system using data analytics and artificial intelligence to identify at-risk industries and regions.

“This would enable timely intervention before layoffs escalate further,” he added.

Fifth, Mah called for stronger cross-ministerial coordination to ensure policy coherence across agencies, including the Finance Ministry and Investment, Trade and Industry Ministry.

“Labour market challenges cannot be addressed by a single ministry alone. A coordinated approach is essential,” he continued.

Mah further emphasised that the government must prioritise tangible outcomes in the face of growing global uncertainty.

“Only through targeted and well-executed policies can Malaysia safeguard employment, stabilise public confidence and strengthen economic resilience,” he stated. ‒  Focus Malaysia