Malaysia recorded a rise in job losses in May, while escalating coal prices and the threat of a prolonged El Niño event pose fresh risks to the country’s economic outlook.
Economy Minister Akmal Nasrullah Mohd Nasir said 7,766 workers lost their jobs under PERKESO’s Employment Insurance System (SIP) in May, up 8.4% from 7,162 in April.
The unemployment rate stood at 3.0%, involving 511,800 individuals, with nearly 80% of the unemployed actively seeking work.
However, job placements through MYFutureJobs rose 19% month-on-month to 14,366 in May from 12,119 in April, indicating continued demand for workers despite the increase in retrenchments.
“The government will continue to monitor job losses and strengthen job-matching efforts so affected workers can return to employment more quickly,” he said.
On the energy front, global coal prices climbed 8.2% to US$142.62 per metric tonne between June 1 and June 3 as international utilities increasingly switched from gas to coal to curb power generation costs.
The minister also warned that the anticipated El Niño phenomenon, expected to begin this month and last until at least mid-2027, could exacerbate the ongoing energy crisis and weigh on economic activity.
He said rainfall in some states could decline by between 40% and 60%, raising concerns over water supply, food production, commodity output and electricity demand.
Drawing from previous El Niño episodes, Akmal Nasrullah noted that temperatures above 37°C in 2015 and 2016 forced the closure of 250 schools in northern Peninsular Malaysia, while palm oil production fell by 16% to 18%.
He added that crop yields could decline by 8% to 10% if similar conditions persist, posing risks to Malaysia’s commodity sector and broader economy.
He said amid an uncertain global environment, the government will continue to prioritise the well-being of the people and the resilience of the national economy.
