Cover image via Bernama & Mohd Rasfan/AFP
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More than 4,700 workers in Malaysia lost their jobs within the first 16 days of April, raising fresh concerns about the country's labour market outlook
Economy Minister Akmal Nasrullah Mohd Nasir said a total of 4,708 retrenchments were recorded based on data from the Social Security Organisation's (PERKESO) Employment Insurance System (EIS).
"A total of 4,708 workers were reported to have lost their jobs in the first 16 days of April," he said, adding that the trend requires close monitoring.
Economy Minister Akmal Nasrullah Mohd Nasir.
Image via BernamaThe second quarter has been flagged as a "crucial period"
While the latest figures do not yet signal a large-scale labour market crisis, the minister cautioned that the second quarter of 2026 will be a key period to watch.
"The second quarter of 2026 will be a crucial period to determine whether the cost pressures currently burdening companies will translate into operational downsizing or further job cuts," he said, as reported by The Star.
He noted that the impact of rising energy costs on employment typically appears with a time lag, based on past trends.
The April figures come on the back of elevated job losses in the first quarter of 2026
Malaysia recorded 10,700 layoffs in January, followed by 7,500 in February and 5,900 in March, according to PERKESO data.
Although the numbers had been trending downward, the latest April figures suggest retrenchments remain ongoing.
Source: SOCSO / HLIB Research / SAYS.com
Energy costs and the global crisis are putting pressure on the economy
Akmal said the current situation is no longer a short-term shock, pointing to a broader global supply crisis affecting multiple sectors.
"What we are facing now is no longer a short-term shock. It is not just an issue of oil prices, but has developed into a global supply crisis affecting energy costs, logistics, raw materials, food, services and ultimately the daily lives of the people," he said.
The pressure is partly linked to disruptions in global oil supply following tensions in the Middle East, which have affected shipping through the Strait of Hormuz.
Brent crude prices have climbed to around USD94 per barrel, up sharply from about USD72 before the conflict.
People walk at Bukit Bintang shopping area in Kuala Lumpur.
Image via Agoes Rudianto/NurPhoto/AFPInflation rising as cost pressures build
Domestically, inflation rose to 1.7% in March, up from 1.4% in February, driven largely by higher transport costs.
Akmal said these cost pressures are already filtering into everyday expenses, although the impact varies across sectors.
Despite the rising layoffs and cost pressures, the minister stressed that Malaysia's economic fundamentals remain intact.
The country is projected to record GDP growth of 5.3% for the first quarter of 2026.
However, he cautioned that this does not mean the economy is fully out of danger.
"Instead, it shows us that the country's economy is still holding up in the face of external pressures that have not subsided," he said.
