Retrenchment likely to continue in 2016

jobsPETALING JAYA: After more than 20,000 employees lost their jobs last year, the Malaysian Employers Federation (MEF) believes 2016 will see more retrenchments, The Malaysian Insider reported today.

In the report, MEF executive director Shamsuddin Bardan said as of last September, over 20,000 from various sectors were retrenched and with no sign of the economic outlook improving, the trend would likely continue in 2016.

He added that the figures came from the Human Resources Ministry but that the MEF did not have details on the number of companies involved in the retrenchment exercises.

Shamsuddin noted that 6,000 employees who were retrenched last year during the Malaysia Airlines’ restructuring, contributed a huge percentage to the total retrenchment figure in 2015.

He also said that hiring significantly slowed last year with only necessary positions being filled, and this included jobs in the public sector as the government froze hiring of civil servants except for critical positions.

This alone, he said closed 15,000 job opportunities.

Last year, numerous news reports highlighted thousands of job cuts in various industries including the oil and gas industry as well as the banking and manufacturing sectors.