Malaysia unemployment rate may go a tad higher
What is the current Malaysia unemployment rate? Well, it is in danger of rising and may hit 4.5% figure next year, according to the Malaysian Institute of Economic Research (MIER).
According to MIER’s executive director, Professor Emeritus Dr Mohamed Arif Abdul Kareem, 12,000 people are jobless in the third quarter, and the number is set to increase in the next few coming months.
More companies are expected to slash their expenditure, shrink their company size and as a result, more people will be losing jobs. A small number of companies may also go bust. Research by MIER also indicates that manufacturing sector may become the most highly hit casualty, just like during the late 90s economic downturn.
At the moment, the country’s unemployment rate fluctuates at a steady rate of 3.5%. During the vibrant economy in the 80s and 90s, the jobless stood between 2 to 2.5 percent, indicating that today’s situation is not looking so good.
The 4.5% figure represents perhaps a more accurate assessment based on the current economic situation as Malaysia is now preparing the backlash of the credit crunch and subprime mortgage originating from the United States. In November, the second finance minister Tan Sri Nor Mohamed Yakcob issued a statement that the country’s unemployment rate would not go beyond 4% in 2008 and even in 2009.
Who is telling the truth? We’ll see.