KUALA LUMPUR: The implementation of various national master plans in Malaysia, aimed at steering the country's development across multiple sectors, is anticipated to enhance both the employment rate and gross domestic product (GDP).
In its latest report, UOB Global Economics & Markets Research (UOB Research) said that quality investments are expected to generate more semi- and high-skilled job opportunities in the near future.
The research firm highlighted key projects that will create employment, including three industrial parks in Penang—Bandar Cassia Technology Park, Batu Kawan Industrial Park 3, and Penang Science Park South—collectively attracting an investment of RM3.2 billion.
Additionally, the Selangor state government plans to establish another integrated circuit design park in Cyberjaya by early or mid-next year to accommodate more engineers in Selangor, the report stated.
Malaysia's labour force experienced its most substantial expansion since the third quarter of 2013 (Q3 2013), growing by 186,600 (or +1.1% quarter-on-quarter, QoQ) to reach a record high of 17.15 million in Q2 2024.
UOB Research attributed the labour market improvement to increased economic activities, particularly in tourism and trade, the realization and commencement of approved investment projects, the execution of initiatives under the national master plans, and ongoing government employment measures, including the Social Security Organisation's (SOCSO) Job Resettlement Programme.
The report also noted the government's efforts to boost the tourism industry, targeting 27.3 million foreign tourist arrivals and RM102.7 billion in receipts this year (2023: 20.1 million tourists and RM71.3 billion). For 2025, the targets are 31.4 million tourists and RM125.5 billion in receipts, while for 2026, the goals are 35.6 million tourists and RM147.1 billion in receipts.
The action plans to achieve these targets include the ASEAN Chairmanship Year 2025, Visit Malaysia 2026, various promotional activities abroad, and enhanced airline cooperation to expand direct flight options.
Meanwhile, government agencies have organized career fairs, skills development programs, and launched the pilot voluntary progressive wage policy (PWP) project in June. As of August 5, approximately 1,094 companies had registered under the PWP pilot project, with 443 applications submitted and 144 meeting the wage criteria. A total of 42 companies have made claims, involving 183 employees, according to UOB Research.
"The government expects to pay out incentives to employers from October 2024 and is considering extending the incentive for employers participating in the PWP pilot project from 12 months to 24 months," UOB Research said.
Regarding job placements, the Human Resources Ministry reported that 65,674 workers secured jobs through the SOCSOJob Resettlement Programme in the first half of 2024.
"We expect the above-mentioned drivers to remain in place to underpin the labour market outlook in the second half of 2024 and into 2025," UOB Research said.
Taking cues from the seasonally adjusted unemployment rate of 3.2 per cent in June (May: 3.3 per cent) and higher GDP growth for Q2 2024, we tweak our 2024 year-end jobless rate forecast slightly lower to 3.2 per cent (from 3.3 per cent previously, Bank Negara Malaysia estimate: 3.3 per cent, end-2023)," it said.