In January, Malaysia experienced a notable increase in employment, rising by 0.3%, which translates to the addition of 54,500 jobs. This brings the total employment figure to 16.7 million, according to recent government data released on Tuesday. A closer look reveals that the employment-to-population ratio has also improved, reaching 68.5% in January compared to 68.4% in December.
This increase is primarily attributed to substantial gains in the services, manufacturing, and construction sectors. The services sector stands out as the primary driver of this growth, particularly with significant advancements noted in accommodation and food services, wholesale and retail trade, as well as healthcare.
The number of employees in Malaysia rose by 0.3%, totaling 12.6 million, while the self-employed workforce saw a 0.7% increase, reaching 3.1 million. The unemployment rate in Malaysia has stabilized at 3.1%, with the count of unemployed individuals decreasing by 0.9%, now at 533,800. Furthermore, the labor force has expanded by 0.3%, amounting to 17.22 million, thus maintaining a participation rate steady at 70.6%.
This positive trend in employment indicates the Malaysian government's efforts to strengthen the job market. In a strategic move, Nomura has appointed Ong Kin Yok as the Managing Director for Malaysia and Singapore, aiming to enhance its wealth management services in the region. Concurrently, Petronas, the state-owned oil and gas company, is undertaking plans to 'rightsize' its workforce, ensuring sustainability in the long term.
Additionally, a special economic zone between Malaysia and Singapore in Johor is anticipated to generate approximately 20,000 job opportunities. Nonetheless, concerns persist regarding the fast-growing data center market in Johor. This burgeoning sector is significantly increasing resource demands without generating a corresponding amount of job creation. Furthermore, Malaysia has inked a $250 million agreement with Arm Holdings to bolster its capabilities in chip design and engineer training.
This partnership aims to yield up to $2 billion in annual revenue for local chip firms, signaling a promising pathway for economic growth and job creation in the tech industry..