The Malaysian economy has been bad for quite some time and it certainly didn’t improve much this year. Therefore, the Malaysian Employers Federations predicted that many more people will have to face retrenchment this year as companies try to consolidate their expenses to brave against this current economic challenges.
The Malaysia Employers Federation also said that with the emergence of many disruptive technology start-ups in some industries also contributed to more retrenchment by non-disruptive technology companies.
Based on The Star’s Report, executive director of Malaysian Employers Federation (MEF) Datuk Shamsuddin Bardan said that bosses will spend more time to review their workers’ requirements. He also said that slightly more workers will face retrenchment this year in a press conference held after the Taxation and Employer seminar hosted by both the Inland Revenue Board and Malaysian Employers Federation.
According to him, approximately 44000 workers suffered retrenchment and lost their jobs in 2015 and up to September last year, another 40000 lost their jobs. The affected industries include banking sector, insurance, manufacturing, and construction.
He said that due to banks that adopted the new disruptive technology such as online transactions, around 18000 of those people lost their jobs in the banking sector.