Feb 23, 2017

More worker retrenchments expected this year

More worker retrenchments expected this year


SUBANG JAYA: Worker retrenchments are expected to rise this year due to current economic challenges and the introduction of game-changing technology in some industries.

Malaysia Employers Federation (MEF) president Datuk Shamsuddin Bardan retrenchment of workers was seen the last two years.

"Due to current economic challenges, employers will have to re-look their employment requirements," Shamsuddin told a press conference today.

He said 44,000 workers lost their jobs in 2015 with 18,000 from the banking sector which was increasingly adopting online transactions, among what he considers "destructive technology" while 40,000 workers were retrenched up to September last year.

He added consumers are also increasingly approaching companies directly for their services, which will make some middlemen or fixers redundant.

This seems to confirm the Human Resources Ministry's 2017 unemployment rate forecast, which is expected to rise slightly from 3.1% to 3.3%.

Meanwhile, Shamsuddin said the Home Ministry and Human Resources Ministry have formed a task force to iron out issues surrounding the E-kad programme.

He said these issues include the inability of self-employed small business owners such as hawkers to register due to the lack of proper documents.

The programme, which allows businesses to register and rehire illegal foreign workers currently in their employment, will be in place from Feb 15 to June 30.

Original source: The Sun Daily

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