Malaysia’s labour market has remained broadly stable despite global economic pressures, with the government saying job losses and business downsizing remain under control through coordinated interventions by the National Economic Action Council (MTEN).
In response to a question from Bachok MP Mohd Syahir Che Sulaiman, Economy Minister Akmal Nasrullah said the government takes job losses seriously, especially amid higher energy costs, supply chain disruptions and global geopolitical uncertainty.
He said every job loss affects household income and consumer confidence, which is why MTEN has been coordinating a series of mitigation measures covering worker protection, business continuity and economic resilience.
A key focus has been supporting small and medium enterprises (SMEs), including through the SME Stabilisation Relief Facility worth RM5 billion. As of June 18, more than RM700 million has been approved for over 1,000 SMEs, with over RM4 billion still available for eligible businesses. The government has also allocated an additional RM5 billion guarantee facility under Syarikat Jaminan Pembiayaan Perniagaan Berhad (SJPP).
Banks, he added, are expected to process SME applications within seven working days.
Another major initiative is the RM710 million PACE economic resilience package, which focuses on social protection, job placement, training and support for gig workers as well as youth and SMEs.
Under the programme, RM580 million has been allocated via PERKESO to strengthen the Employment Insurance System. A further RM100 million is channelled through HRD Corp for training and job placement, supported by the MYFutureJobs platform. RM20 million has been set aside for gig worker training via the Perbadanan Tabung Pendidikan Kemahiran, while RM10 million is allocated through TalentCorp for industrial training and SME support.
The ministry also highlighted ongoing efforts to stabilise supply and prices of essential goods and critical raw materials for key sectors including manufacturing, agriculture and services.
Labour data showed the workforce stood at 17.33 million as of April 2026, while total employment reached 16.82 million. The labour force participation rate remained steady at 70.9%.
Unemployment rose slightly from 2.9% in March to 3.0% in April, representing 511,800 people, but still below the 4% full employment threshold.
Job losses were recorded at 6,197 as of June 22, down 20% from 7,766 in May, accounting for just 0.04% of total employment.
At the same time, job placement efforts improved, with MYFutureJobs recording a 55% increase in placements from 12,119 in April to 18,756 by June 12. Total placements for 2026 reached 62,644.
Akmal said the government will continue to act in a structured and data-driven manner to protect workers, support businesses and ensure economic growth benefits the people.
