ANOTHER EMPLOYERS GROUP SAYS IT: 30,000 MAY LOSE JOBS IF ECONOMY WORSENS

THE average 20,000 workers laid off each year could jump to more than 30,000 retrenchments this year in the event of an economic downturn, said employers groups.

The Federation of Malaysian Manufacturers’ (FMM) estimate corresponds with the Malaysian Employers Federation’s projection that 30,000 workers will lose their jobs due to increasing cost of doing business.

“On average, 20,000 people are laid off each year, but if the economy declines, the figure may exceed 30,000,” said FMM president Soh Thian Lai.

He told The Malaysian Insight lay-offs are expected due to restructuring and cost-cutting measures to improve productivity and the balance sheet.

He said the first two quarters of 2019 will be a trying period for employers as demand is expected to wane while costs burgeoned.

Malaysian Trades Union Congress (MTUC) president Abdul Halim Mansor said companies usually  lay down the year’s strategies and key performance Indicators (KPIs)  after the Chinese New Year.

However, he said he has yet to see such actions being taken in 2019, which could indicate that many in the private sector are lacking direction.

“Usually this is the time when companies work towards stepping up their productivity as they would have been given a guide by their order books. There is a possibility that companies may resort to laying off their staff if they are unable to achieve their KPIs,” said Halim.

Turnover rates usually rise after the Chinese New Year, but this year could see a different scenario as employees are reluctant to quit their jobs for a new one, due to the lacklustre job market and uncertainties surrounding the economy.

Halim said semi-skilled workers in particular would find it difficult to move around due to the saturated job market.

Jobstreet country manager Gan Bock Herm, citing the employment portal’s Job Outlook Report 2019, said active hirings are expected in the first half of 2019, particularly in the first quarter.

“Therefore, talents should intensify their job-hunting during this period if they intend to switch jobs,” he said.

He cautioned jobseekers that it is important for them to be equipped with the right skillset required by employers looking to drive their business.

“They need to proactively engage in upskilling and retraining to ensure they remain relevant and employable in the market today, especially during challenging times.”

“While we do not have data on employee resignations, we are seeing positive year-on-year growth in job applications from our database so far. This indicates that talents are still actively looking for jobs. Unfortunately, we are unable to comment on this behaviour in relation to the post-Chinese New Year (period).”

Unclear government policies 

Malaysia Small and Medium Enterprises (SME) president Michael Kang criticised the new government for not being business-friendly and its policies lacking in clarity.

While the new government is people-centric, it is not pro-business, hence earning itself a confidence deficit from the business community.

To stimulate economic growth, the government will have to have clear policies and be pro-business in order to generate income for the people. However, Pakatan’s approach does not seem to be in line with this.

“It has not rolled out its business policies and those who question it are penalised, so who will dare to do business?” Kang said.

He added that the business community has been waiting for over nine months for a new labour policy.

Local businesses and foreign investors may not be able to wait if this was to take another two to five years, which will eventually result in a weak labour force and exit of investments to another country.

Gan also roasted the current administration for its lack of engagement with the business community and absence of representative in the Economic Action Council.

“The current ministers think that their approach is correct and that they are headed in the right direction. They are not willing to communicate with the business community,” Gan said.

He said the previous government was more open to the views of business groups and there was also more clarity in their economic policies.

Kang also echoed with the rest, that if economic conditions worsens, there could be an increase in the number of lay-offs.

Soh, however, holds a different view on the council, as he said this relects the government’s determination to find an effective and immediate solution to the country’s economic woes.

– https://www.themalaysianinsight.com