Govt slashes job creation target for economic corridors by 71% for 2027

 Although new jobs are expected to drop from 150,100 in 2026 to 43,000 next year, realised investments are slated to rise from RM91 billion to RM94 billion.

Economy minister Akmal Nasir said technology-intensive projects generally use automation and require fewer workers. (Bernama pic)

KUALA LUMPUR:

The government has cut its job creation target for the country’s economic corridors by 71% for next year, despite aiming to attract more investments into these regions.

According to the economy ministry’s budget estimates released on Oct 9, the target for new jobs will drop from 150,100 this year to 43,000 in 2027.

However, the target for realised investments will rise from RM91 billion to RM94 billion over the same period.

Several MPs, including those from Kubang Pasu, Langkawi and Rantau Panjang, raised the figures during the committee stage debate on the ministry’s allocation in the Dewan Rakyat today and questioned the sharp drop.

While he did not give reasons for the drop, economy minister Akmal Nasir said the number of jobs created depended on the type of investment.

“Technology-intensive projects generally use automation and require fewer workers, but need more skilled and semi-skilled workers,” he said when winding up the debate.

Akmal said Kedah Rubber City had attracted five investors with a combined investment commitment totalling RM3.344 billion as of September.

He said another three potential investors, with a combined estimated investment value of RM450 million, were in talks with the authorities.

He also said the ministry’s development allocation for Sabah would rise by 100.7% from RM87.1 million this year to RM174.85 million in 2027.

Among the projects he cited were a RM150 million project to expand Sepanggar port and RM9.85 million to upgrade a road to Kota Kinabalu Industrial Park.

Akmal said RM236.6 million had also been allocated to 13 state development corporations for 38 projects next year, with all 13 receiving funding.

He said Kelantan would receive RM57.5 million for seven projects, Kedah RM52.5 million for five, Pahang RM34.3 million for six and Perak RM18 million for two.

Selangor, which did not receive any allocation this year, was being considered for a RM5.77 million allocation to help small Bumiputera businesses. - FMT