Malaysia’s Job Crisis: Not Fewer Jobs, But Fewer Good Ones

SHAH ALAM – The main issue approaching 2026 is no longer focused on generating employment, but rather on making sure these jobs are fair, stable, and long-lasting. This involved ensuring employees received equitable pay, social security, and sustained stability in a rapidly changing and more dispersed economic environment. President of the Malaysian Trades Union Congress, […]

SHAH ALAM – The main issue approaching 2026 is no longer focused on generating employment, but rather on making sure these jobs are fair, stable, and long-lasting.

This involved ensuring employees received equitable pay, social security, and sustained stability in a rapidly changing and more dispersed economic environment.

President of the Malaysian Trades Union Congress, Datuk Abdul Halim Mansor, stated that employability should be considered from a broader perspective, linking economic growth, workers’ daily lives, living situations, and equitable labor standards, in accordance with the International Labour Organisation’s Decent Work Country Programme (DWCP), which Malaysia endorses.

He mentioned that Malaysia’s significant dependence on foreign labor, especially in construction and plantations where they constitute over 90 percent of the workforce, indicates underlying structural issues.

Although MTUC does not object to the use of foreign workers, he pointed out a distinct form of bias.

Local employees contribute as much as 24 per cent to social security programs, whereas foreign workers pay approximately four per cent, which makes migrants significantly less expensive to employ.

“If you were an employer, what would be the reason to recruit locals?” he stated, cautioning that these policies unintentionally deter local job opportunities and undermine the workforce system.**media[3387130]**

He emphasized that upon entering Malaysia, regardless of being a local or foreign worker, they should receive equal protection under labor laws, covering aspects such as wages, working hours, medical benefits, leave entitlements, and social security, in accordance with international standards.

He mentioned that the increase in temporary and contract-based jobs is another significant issue to consider as 2026 approaches.

Although approximately 1.2 million Malaysians are believed to be involved in gig work, he mentioned that safeguards are still restricted and not clearly defined.

Numerous freelance workers are not covered by conventional employment classifications, making them susceptible to risks during accidents, crises, or conflicts. Due to the absence of defined employment conditions, employees frequently have to pursue resolution in court, which is both expensive and unpredictable.

Recent measures like expanding accident coverage are positive, but why does the protection end at that point?

“Why is it only accident coverage? What about retirement savings and long-term security?” he asked.

He mentioned that without proper discipline, certification, and organized support, gig work could turn into survival work instead of a respected occupation.

He mentioned that approximately 500,000 young Malaysians join the job market annually, but workforce planning is still inadequate.

Colleges, he mentioned, generate graduates who lack a clear connection to the requirements of the industry, while companies express concerns about a shortage of workers.

Malaysia does not have a well-known job certification system, in contrast to developing nations like Australia, where residents hold a majority of technical and construction positions because of well-defined skill recognition processes.

The outcome includes underemployment, misalignment between careers and skills, and a continuous departure of local employees from critical industries.

“Ensuring that education, skills, and industry requirements align is essential to keep local employees,” he stated.

Talking about job cuts, he mentioned that automation and reducing expenses have made it simpler to lay off employees, while hiring foreign workers or using agencies helps employers escape long-term obligations.

He mentioned that during layoffs, particularly affecting older employees, many are forced to enter informal jobs or street-based small businesses merely to make ends meet, often involving family members, including children.

“This is the way employees get overlooked. With insufficient social security, workers are unable to bounce back after being laid off,” he mentioned.

He emphasized that employability cannot be disconnected from infrastructure and regional growth.

He mentioned that inadequate logistics and inconsistent industrial development lead workers to move to big cities, increasing living expenses and traffic.

A well-rounded development that includes ports, logistics centers, and industries distributed throughout the states can enable individuals to find employment nearer to their residences, stabilize living expenses, and establish new areas of economic growth.

He further stated, ‘When growth is focused in a single area, everything gets congested.’

As Malaysia steps into 2026, he mentioned that the nation is encountering a crucial challenge: whether it can maintain economic expansion without compromising the respect and worth of its workers.

Companies can move with ease, but employees cannot.

Without just salaries, equal legal safeguards, effective planning, and robust local industries, Malaysia faces the possibility of becoming a nation where individuals have jobs but lack stability.

“Decent work goes beyond just earnings. It involves stability, structure, and the well-being of the community. Without these elements, Malaysia’s progress in employment could remain unstable and short-lived,” he added.