MEF Predicts More Retrenchments This Year

February 24, 20178:44 am536 views
MEF Predicts More Retrenchments This Year
Datuk Shamsuddin Bardan, executive director of MEF

Owing to current economic challenges, the Malaysian Employers Federation (MEF) predicts more jobs will get axed this year. Besides weak economy, the challenges include “disruptive technologies” in many industries.

According to Datuk Shamsuddin Bardan, executive director of MEF, the economic challenges will foresee employers reviewing the need for workforce additions. At a seminar jointly hosted by the Inland Revenue Board and MEF yesterday, Shamsuddin Bardan said, “I think slightly more workers will be retrenched this year.”

In 2015, about 44,000 workers lost their jobs while up to September last year, about 40,000 workers were retrenched, The Star Malaysia reports. While the recent data have not been released by the authorities yet, the numbers could be much higher than the previous year.

See: MEF Rejects Proposal for Retrenchment Fund and Employment Insurance Scheme

In 2015, about 18,000 people lost their jobs from the banking sector due to introduction of “disruptive technology” with banks increasingly adopting online transactions. Other industries that could be affected include manufacturing, construction and insurance sectors.

As for the insurance industry, many prefer dealing with companies for the services, which makes the jobs of middlemen or agents redundant. However, these agents are not included in the retrenchment rate as they are considered to be self-employed.

Commenting on the E-card enforcement criteria by the Immigration Department, Shamsuddin said, “The government should consider widening the criteria, and the programme should be open to illegal workers who do not have permanent employers.”

Currently only illegal workers with valid employers can register and legalise their work under the E-card programme, however by including foreign workers without legal employers the source of talent pool can be widened, Shamsuddin believes.

Also read: MEF Urges Government to Bring Down Costs for Employers to Reduce Layoffs

Image credit: leaderonomics.com

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