More than 42,800 people in Malaysia had lost their jobs as of 12 June, with the manufacturing sector accounting for the largest share of retrenchments, according to the Ministry of Human Resources.
As per the reports from New Strait Times, data from the Social Security Organisation (PERKESO) showed that 42,807 workers were displaced nationwide during the period. The manufacturing industry recorded 8,702 job losses, representing 20.7% of the total, as businesses grappled with rising operating costs and weakening global demand that continued to disrupt supply chains.
The wholesale and retail trade sector followed with 7,560 job losses, while the administrative and support services sector recorded 4,239 retrenchments.
Financial support
To cushion the impact on affected workers, PERKESO approved 134,123 benefit claims under the Employment Insurance System (EIS), with recommended payouts totalling RM248.23 million.
The benefits include job search allowance, reduced income allowance, early re-employment allowance, training fees and training allowances, aimed at providing immediate financial relief while helping displaced workers improve their employability through skills development.
Government response
The ministry said it has strengthened PERKESO's support through the Progressive Acceleration for Capability and Employment (PACE) Economic Resilience Package, backed by more than RM580 million under the EIS.
The initiative is expected to support more than 56,000 retrenched workers through financial assistance, job placement programmes, employment support services and re-employment interventions.
The ministry said the measures are designed to ensure Malaysia's social safety net remains resilient amid prolonged global economic uncertainty.
Legislative reforms
Human Resources Minister, Datuk Seri R. Ramanan said the government is also reviewing the Employment Insurance System Act 2017 to strengthen protection for workers.
The proposed reforms include improved benefit rates for the Early Re-employment Allowance, Training Allowance and Training Fee, alongside the introduction of a new Mobility Assistance Allowance to encourage workers to relocate to areas with stronger employment demand.
"Through Perkeso, the ministry has established a comprehensive social safety net to ensure no worker is left behind in facing the current global uncertainties.
"Beyond financial assistance, our priority is to ensure workers affected by retrenchment receive immediate support through employment services to help them return to the labour market as quickly as possible.
"Perkeso employment services officers have been tasked with monitoring every case through career counselling, targeted job searches and accurate job matching to ensure the effectiveness of the re-employment process," he said.
Upskilling efforts
Alongside financial support, the ministry is expanding upskilling and reskilling initiatives to help displaced workers develop skills aligned with current labour market needs.
Between January and 24 April, 2,697 insured jobseekers were approved to participate in modular training programmes. During the first five months of the year, PERKESO also organised 2,989 career carnivals, including daily and weekly interview sessions across the country, attracting 86,594 jobseekers.
The latest figures were provided by the ministry in a parliamentary written reply to a question from Datuk Seri Mohmed Puzi Sh Ali (BN-Pekan), who sought details on job losses by sector, EIS payouts and government measures to support workers affected by the global economic slowdown.