THE government has insisted that Malaysia's labour market and business sector remain resilient despite mounting global economic headwinds, citing declining job losses, rising employment levels and stronger job placement outcomes following a series of intervention measures coordinated through the National Economic Action Council (MTEN).
Responding to concerns over rising retrenchments and business downsizing linked to energy market volatility and global economic uncertainty, Economy Minister Akmal Nasrullah Mohd Nasir said a comprehensive package of support measures had been activated to protect workers, sustain businesses and preserve economic stability.
Addressing the Dewan Rakyat during Minister's Question Time on Thursday, the ministry stressed that the government viewed every job loss as a matter affecting household livelihoods and public confidence in the economy.
"Every job loss is not merely a statistic. It involves family income, household commitments and public confidence in the country's economic future," Akmal said.
Central to the government's response has been support for small and medium-sized enterprises (SMEs), which remain particularly vulnerable to rising operating costs and external economic shocks.
Under Bank Negara Malaysia's SME Stabilisation Relief Facility (SME SRF), RM5 billion has been allocated to help businesses manage cash flow pressures and maintain operations.
As of 18 June 2026, more than RM700 million in financing had been approved for over 1,000 SMEs, leaving more than RM4 billion still available for eligible companies.
“The government has also strengthened financing support through an additional RM5 billion guarantee facility provided by Syarikat Jaminan Pembiayaan Perniagaan Berhad (SJPP).
“Businesses experiencing financial constraints have been encouraged to engage directly with their financial institutions, which have committed to processing applications within seven working days,” Akmal said.
Beyond business support, the government has launched the Progressive Acceleration for Capability and Employment (PACE) initiative, a package worth more than RM710 million designed to protect jobs, enhance workforce skills and improve employment opportunities.
The programme focuses on social protection, workforce training, job placement, gig economy empowerment and talent development.
More than RM580 million has been channelled through the Social Security Organisation (SOCSO) to strengthen the Employment Insurance System for workers who lose their jobs.
An additional RM100 million has been allocated through HRD Corp for training and job placement programmes, supported by the MYFutureJobs platform to accelerate employment matching, particularly among youths and vulnerable groups.
The package also includes RM20 million for gig worker training through the Skills Development Fund Corporation (PTPK) and RM10 million through TalentCorp to expand industrial training opportunities within SMEs and start-up companies.
Akmal said the government had simultaneously intensified monitoring of essential goods and critical industrial inputs to ensure stable supplies for the manufacturing, food, agriculture and services sectors.
Official figures presented to Parliament suggest the interventions have helped maintain stability in both the labour market and broader economy during the first half of the year.
As of April 2026, Malaysia's labour force expanded to 17.33 million people, while total employment rose to 16.82 million. Labour force participation remained unchanged at 70.9 per cent, reflecting what the government described as continued economic stability.
Although the unemployment rate edged up slightly from 2.9 per cent in March to 3.0 per cent in April, involving 511,800 individuals, the ministry noted that the figure remained below the four per cent threshold generally associated with full employment.
More significantly, retrenchment figures have shown signs of improvement.
As of 22 June 2026, a total of 6,197 workers had lost their jobs, equivalent to approximately 0.04 per cent of the country's employed workforce.
The figure represents a 20 per cent decline compared with the 7,766 job losses recorded in May.
Meanwhile, job placement efforts have accelerated sharply.
By 12 June 2026, MYFutureJobs had recorded a 55 per cent increase in successful employment placements, rising from 12,119 placements in April to 18,756.
This brought the total number of successful placements through the platform and the Employment Insurance System to 62,644 for the year.
The ministry said the figures demonstrated that government interventions were not merely providing temporary assistance but were helping affected workers return to employment more quickly.
Akmal added that the government acknowledged that certain sectors, particularly SMEs, continued to face significant pressures. However, it pledged to maintain a data-driven and targeted approach through MTEN to ensure workers remain protected, businesses continue receiving support and economic growth delivers tangible benefits to Malaysians.
"Through MTEN, the Government will continue to act in a structured, targeted and data-driven manner so that workers are protected, businesses are supported and the country's economic growth continues to benefit the people," he added. - June 25, 2026
