#Human Resources #Employer

Over Fifty Thousand Malaysians Have Lost Their Jobs

Nikki Blog
by Nikki Blog
Jul 23, 2020 at 11:13 AM

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As of July 1, 50,825 Malaysians have registered for a loss of employment this year under the Employment Insurance System (EIS), according to the Human Resource Ministry.

In a written response to Datuk Abdullah Sani Abd Hamid (Kapar-PKR), the ministry said the EIS had paid out RM107.8 million to 66,204 claimants as of June 26, more than the total of RM107.6 million claimed by 66,650 people for the entirety of last year.

“The number of Malaysians who lost their jobs as a result of the Covid-19 pandemic as of July 1, 2020, is 50,825 people. The breakdown according to the employment sectors involved is as follows:

Manufacturing Sector: 11,432 or 23%.

Accommodation and Food Service Activities Sector and Beverages: 7,497 or 15%.

Wholesale and Retail Trade Sector: 7,129 or 14%.

Professional, Scientific and Technical Activities: 4,546 or 9%,” it said.


The number of Malaysians who lost their jobs as a result of the global pandemic as of July 1, 2020 

Abdullah had requested for the latest statistic for the EIS and how much of the funds were given to those who deserved it. The reply also said that until June 2020, 6.4 million workers have registered with EIS.

Meanwhile, in another reply to M. Kulasegaran, the Human Resource Ministry said the number of people who have lost their jobs has been doubling every month since the inception of the movement control order (MCO) in March.

19,352 people lost their jobs in June, more than double the number of 7,195 people in May. The number of people who lost their job in April is 4,127 which is also double the total of 1,791 in March.

“To date, a total of 36,196 people under 1,377 employers have lost their jobs. 28,779 involve permanent retrenchment while 7,417 involve voluntary separation schemes,” said the reply.

Unemployment Bar Chart Malaysia
Number of Malaysians who lost their jobs from March to June 2020

The ministry said the retrenchment is the employers' right and they should the guidelines given by the government. The reply also asks the employers that in case of retrenchment, the foreign workers should be retrenched first then the local employees.

Recently, Human Resources Minister Datuk M. Saravanan stated that the current unemployment rate for the country is 5.3% but economic measures launched by the Perikatan Nasional (PN) government are beginning to produce positive results in the labour market.

Citing information from the Department of Statistics Malaysia, the minister said that 12.7 million people or 83.5% have begun working again as at June 2 compared to 10.2 million or 67.2% at May 7 during the recovery movement control period (RMCO) imposed by the government to control the spread of the Covid-19 coronavirus.

Source: Malay Mail

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