KUALA LUMPUR: Domestic job recruiters remain steadfast on the growth and pinpoint several domestic sectors destined to shape the job market in 2024 amid global uncertainties, geopolitical tensions and potential recessions in some major economies.
However, with the World Bank cutting its target for Malaysia's gross domestic product (GDP) to 3.9 per cent from 4.3 per cent for 2023 amidst a substantial deceleration in external demand, these industry experts also see Malaysia's job market as likely to face uncertainty due to local and global factors.
Malaysia HR Forum chief executive officer and co-founder Arulkumar Singaraveloo sees five industries that may impact the job market most in 2024.
He said these are e-commerce, technology and information technology (IT), renewable energy and green technology, tourism and hospitality, and construction.
"We could see this from the 2024 Budget allocation towards these sectors and the emphasis on technical and vocational education and training (TVET) education to support these sectors.
"Not to mention the introduction of various incentives and interventions by the many government agencies and ministries in these sectors," he told Business Times.
He said the recent announcement by the government on significant investment from China and other leading economies in Malaysia would help boost employment due to the cheaper cost of doing business
in Malaysia.
"Coupled with a lower currency exchange, it continues to favour Malaysia, and the country will continue to receive foreign direct investment (FDI) in the coming months and years.
"The lower unemployment rate, which is currently at 3.6 per cent as of October 2023, which is almost on par with the pre-pandemic level of 3.3 per cent in February 2020, indicates job market expansion despite the current world issues we face today," he said.
Aisling Consulting Sdn Bhd founder and managing director Melissa Norman said a few sectors will benefit from the 2024 Budget.
These include new energy and automotive, whereby the provision of rebates and incentives to encourage the adoption of electric vehicles (EVs) and the expansion of EV charging infrastructure is a boon for this industry.
She said this is supported by the government's plans to introduce new EV and solar energy courses under TVET.
Secondly, Melissa said that for the construction industry, the government has several infrastructure projects in the coming year, including the revival of five stations for Light Rail Transit 3 (LRT3), two key Sabah and Sarawak projects and high-priority flood mitigation projects, which will be a boost for construction and engineering firms.
"For the digital specialists and e-commerce sector, with allocations to encourage small and medium enterprises (SMEs) to increase business productivity through automation and digitisation, and the strengthening of the role of the digital economy centres, this can continue to support small entrepreneurs at the community level selling products online, there will be greater demand in related sectors such as training, infrastructure and system support," she said.
When asked to elaborate further on how the global economic climate will affect the job market in Malaysia in 2024, Melissa said several international and domestic factors would affect the job market in Malaysia.
"The possible positive effects are that the Malaysian economy is expected to strengthen in 2024 amid expansion in all sectors and better prospects in global trade.
"Malaysia's labour market is also anticipated to strengthen further in 2023 and 2024, backed by positive impetus in the domestic economy," Melissa noted.
She said reports had indicated that the country's average unemployment rate is expected to decline further to 3.5 per cent in 2023 and return to the pre-pandemic levels of 3.3 per cent in 2024.
The return of non-citizen workers is expected to boost overall employment and reduce the jobless rate.
"On the possible downside, Malaysia's job market could face uncertainty due to local and global factors after the World Bank cut its GDP target for Malaysia to 3.9 per cent," she said.
FastCo general manager Joelle Pang said in the recently tabled 2024 Budget that the government has addressed several initiatives to enhance the welfare of gig workers, including increased social protection.
"Jobseekers should take advantage of these initiatives and consider joining the gig economy to earn income while enjoying some level of social protection.
"The gig economy has contributed approximately 7 per cent to Malaysia's GDP in 2021 and has provided income opportunities to around two million Malaysians.
"Therefore, jobseekers should consider the gig economy as a viable source of income, especially if they are housewives, mature workers, underemployed, or students," she said.
Pang, who is also the creator of FastJobs and FastGig, said job seekers looking to make a career change in 2024 should consider upskilling and reskilling, networking with potential employers, and joining the gig economy as a viable source of income.
"They should also keep themselves updated on the guidelines and initiatives that the government is implementing to enhance the welfare of gig workers," she said.