Latest news with #DOSM
The Sun
2 hours ago
- Business
- The Sun
Malaysia's unemployment drops to 3.2% in 2024, labour market strongest since pandemic
PUTRAJAYA: Malaysia's labour market has achieved its strongest performance since the pandemic, with unemployment falling to 3.2 per cent in 2024, according to the Department of Statistics Malaysia (DOSM). The latest data shows key improvements in employment, youth joblessness, and workforce participation, with stability expected to continue into 2025. The unemployment rate dipped below the pre-pandemic level of 3.3 per cent recorded in 2019, with the number of unemployed persons dropping to 534,100. Youth unemployment, a persistent concern, declined to 10.3 per cent, with 284,700 young jobseekers still without work. The labour force expanded by 3.3 per cent to 16.90 million, while the labour force participation rate (LFPR) hit a record high of 70.6 per cent. Employment also grew by 3.5 per cent to 16.37 million, reflecting stronger job creation. 'Accordingly, the employment-to-population ratio, which indicates the ability of an economy to create employment, also increased by 0.7 percentage points to 68.4 per cent from 67.7 per cent in 2023,' DOSM said. Sector-wise, services remained dominant at 65.6 per cent of total employment, followed by manufacturing (16.3 per cent) and agriculture (9.0 per cent). Underemployment improved, with fewer workers facing insufficient hours, dropping to 212,500 from 226,300 in 2023. Regionally, Putrajaya recorded the lowest unemployment rate (1.1 per cent) and highest LFPR (78.7 per cent). Female workforce participation exceeded the national average in five states, led by Putrajaya (79.4 per cent). Despite progress, 7.02 million Malaysians remain outside the labour force, primarily due to household responsibilities (43.1 per cent) or education (41.3 per cent). DOSM expects continued resilience in 2025, supported by economic growth and ASEAN-driven initiatives.
Barnama
3 hours ago
- Business
- Barnama
Malaysia's Labour Market Hits Post-Pandemic High In 2024, Unemployment At 3.2 Pct
GENERAL PUTRAJAYA, June 30 (Bernama) -- Malaysia's labour market gained momentum in 2024, recording its strongest post-pandemic performance yet, with key indicators showing improvement and stability expected to persist into 2025, the Department of Statistics Malaysia (DOSM) said today. According to DOSM's Annual Statistics of the Labour Force, Malaysia 2024, the unemployment rate fell to 3.2 per cent, dipping below the pre-pandemic level of 3.3 per cent recorded in 2019. The number of unemployed persons also dropped to 534,100, driven largely by a decline in unemployment among youths aged 15 to 24. 'Concurrently, the labour force increased by 3.3 per cent to 16.90 million persons compared to 16.37 million persons in the previous year. The labour force participation rate (LFPR) also rose to a new record high of 70.6 per cent from 70 per cent in 2023,' DOSM said in a statement here today. The number of employed persons also saw positive annual growth, rising by 3.5 per cent to 16.37 million from 15.81 million in 2023, it said. "Accordingly, the employment-to-population ratio, which indicates the ability of an economy to create employment, also increased by 0.7 percentage points to 68.4 per cent from 67.7 per cent in 2023," it said. DOSM said in terms of employment status, 78.5 per cent of employed persons were classified as employees' category while the number of own-account workers category went up to 2.52 million persons, accounting for 15.4 per cent of total employment. It said most employed persons remained in semi-skilled occupations, representing 56.5 per cent of total employment or approximately 9.26 million persons, followed by skilled occupations (4.94 million persons) and low-skilled occupations category (2.17 million persons). From a sectoral perspective, employment remained dominant in the services sector which continued its upward trend and comprised 65.6 per cent of the total employment followed by the manufacturing sector at 16.3 per cent and agriculture sector at 9.0 per cent.
The Star
a day ago
- Business
- The Star
Earning, but still yearning
AS an office worker, Hashim Mazlan has been dreaming of a higher salary after five years of toiling behind a desk. At a small construction company, he handles everything from clerical duties to minor accounting tasks. For the past six years, he has been earning less than RM4,000 a month. Living costs in Kuala Lumpur consume a large portion of his income. Rent, car payments, and groceries leave him financially strained at the end of each month. 'I'm sure you heard all the stories about living in the city with a low wage. I wish I have a steady income increase in the future. I'm not even sure if the minimum wage can help me. Am I going to earn the same until I retire? Will I have enough when I'm old?' wonders the 30-year-old father of two. Hashim is among the many Malaysians in the B40 (lower income) and M40 (middle income) groups concerned about lifelong low wages. As of March this year, the median monthly wage for formal sector employees in Malaysia stood at RM2,745 according to administrative data from the Employees Provident Fund (EPF), the Social Security Organisation (Socso), and the Department of Statistics Malaysia (DOSM) – this represents roughly 60% of the country's formal workforce. In a recent interview with Sin Chew Daily for a special Media in Arms report on Malaysia's new minimum wage, former Bank Negara Malaysia governor Tan Sri Muhammad Ibrahim said Malaysians' real wages have shrunk almost threefold over four decades. He noted that while his starting salary in 1984 was RM1,300, today's graduates are earning only between RM2,000 and RM3,000 – a marginal improvement that fails to keep pace with inflation. Unsurprisingly, lower wages translate into weaker savings. As of 2024, more than 52% of EPF members under age 55 had less than RM10,000 in savings, highlighting widespread financial insecurity. The government has acknowledged the crisis and is introducing measures to address wage and savings issues. These include raising the minimum wage, promoting EPF's monthly budget guide based on locality, and reviewing a proposal to increase the retirement age to 65. But are these steps enough? Experts say more needs to be done – starting with raising real wages. Dignified wage level The ideal, dignified wage for individuals and families with two children should be at least RM5,000 a month, depending on location, says Assoc Prof Dr Aimi Zulhazmi Abdul Rashid, an economist from Universiti Kuala Lumpur's Business School. In a recent interview with Sinar Harian , he referred to DOSM data showing that the average reasonable basic living expenses for a household in 2023 was RM4,729 monthly. Understandably, higher earnings support a more comfortable life and better savings. He notes that urban areas face significantly higher living costs, with monthly household expenses averaging RM5,040 compared with RM3,631 in rural areas. 'The B40, M40, and T20 classifications only reflect gross household income and are certainly not accurate measures for analysing such findings, as they don't take into account the actual cost of living. (T20 are the top 20% of earners.) 'Naturally, the figures vary across states in Malaysia and when comparing urban and rural living costs. Among the contributing economic factors are inflation, often driven by demand and supply dynamics, currency depreciation, and Malaysia's heavy reliance on imported food,' he says. Many Malaysians in the B40 and M40 income groups are concerned about lifelong low wages impacting their retirement savings, especially amid the shrinking value of their salaries. — RAYMOND OOI/ The Star While inflation is reported to be under control, Aimi Zulhazmi points out that incomes have barely increased. He notes that the average monthly wage in Malaysia rose from RM3,087 in 2018 to RM3,224 in 2019. In 2022, wages climbed 5.8% to RM3,212 from RM3,037 in 2021. 'It may look decent on paper, but when compared with DOSM's reasonable basic living expenses of RM4,729 in 2023, it's clear that there's a wide gap. 'Selangor recorded the highest at RM5,854, followed by Perak at RM3,723. This shows that the gap between average wages and reasonable living costs remains significant. 'So the existence of the label 'working but still poor' is not surprising.' Wage hike boost Following the increase in minimum wage from RM1,500 to RM1,700 in February 2025, early indicators suggest improvements among low-income EPF members. Data comparisons before and after the policy shift show the median wage for active formal workers rose 5.6% to RM2,745 in March 2025, from RM2,600 a year earlier, says EPF social policy research head Hawati Abdul Hamid. She adds that 2024 saw a strong performance across the EPF portfolio, with a 1.5% increase in active employers to 614,600 and nearly 500,000 new member registrations. 'Total membership peaked at 16.2 million, with over half being active members. Meanwhile, total contributions increased by 15.0% to RM118bil. These trends underscore healthy labour market conditions and a sustained economic recovery in the post-Covid-19 period.' However, she notes that while early signs are promising, more time is needed to gauge long-term effects. 'We expect this positive momentum to continue into 2025, although it is still too early to draw definitive conclusions about the long-term effects of the minimum wage policy.' Hawati stresses the importance of moving towards a living wage – a wage that supports not just basic survival but a decent standard of living and future financial security. 'We emphasise the importance of achieving a living wage ... as advocated by the GEAR-uP initiative under the Madani economy framework. (Gear-uP is a Finance Ministry-led initiative to leverage government-linked investment companies to boost economic growth.) 'While the EPF is not directly involved in wage-setting, we consistently highlight that wage adjustments aligned with productivity gains are crucial for achieving adequate retirement savings.' Hawati stresses the importanceof moving towards a living wage, one that supports not just basic survival but a decent standard of living and future financial security. She acknowledges that some workers still earn below the minimum wage due to part-time or casual arrangements, not necessarily employer non-compliance. Hawati cites a study by Khazanah Research Institute that found minimum wage policies – first introduced in 2013 and revised four times since – have been the most effective intervention in boosting low-wage workers' earnings and reducing labour market inequality. Longer working years? Extending the retirement age to 65 has been long and widely discussed as a means to improve retirement savings adequacy. In a recent commentary, National Union of Bank Employees general secretary J. Solomon said: 'With the cost of living rising and many Malaysians having alarmingly low EPF balances, extending the retirement age to 65 offers a critical opportunity to build stronger retirement savings. It ensures a more dignified future and improves pension fund sustainability.' Taylor's Business School lecturers Dr Paul Anthony Mariadas and Dr Uma Murthy, in a 2023 commentary, said continued employment beyond age 60 could help individuals save more for retirement. However, it may also hinder career progression for younger workers. 'On the flip side, reduced job opportunities for younger workers can occur when older workers remain in the workforce longer. This can create challenges for younger workers who are entering the workforce or looking for new job opportunities,' they said. The Human Resources Ministry is currently reviewing the proposal to raise the retirement age from 60 to 65. The Malaysian Industrial, Commercial and Service Employers Association (MICSEA) has cautiously welcomed the review; it calls for strategic planning, especially for low-income and manual workers who may not benefit equally from extended employment. 'There should also be stronger statutory protections to protect younger and older workers, ensure fair treatment and improve hiring strategies for younger workers, while ensuring these efforts do not impact aged workers remaining in the workforce,' it said. Ongoing help Still, even if Malaysians work longer, are the current salary structures, especially the national minimum wage, enough to support a sustainable retirement? Hawati says the newly introduced Retirement Income Adequacy (RIA) framework allows EPF members and policymakers to evaluate whether current wage levels are sufficient for long-term retirement goals. 'The RIA framework is aligned with Belanjawanku, an expenditure guide that provides a cost-of-living reference for various household types. By setting clear savings benchmarks – basic, adequate, and enhanced – the framework links income with future needs, offering a practical tool for both individual planning and policy calibration.' She notes that RM390,000 is needed to cover basic post-retirement expenses such as food and essentials. 'This helps members visualise the savings required to meet their living costs, enabling them to work towards achieving sustainable retirement outcomes.' The Account Restructuring initiative introduced in May 2024 has also helped balance short-term needs with long-term adequacy. 'The introduction of the three-account structure contributed to an increase in the share of active formal sector members meeting the basic savings target by age – from 33.1% in December 2023 to 37.1% in December 2024. 'This suggests that a well- calibrated account structure can enhance retirement outcomes without compromising financial flexibility.' Additionally, EPF supports adequacy through real dividend returns. 'Our strategic target of delivering over 2% real dividend growth on a three-year rolling basis helps preserve members' purchasing power. "Together, these efforts – adequate wage calibration, clear savings benchmarks, and real returns – form the foundation for a more secure and inclusive retirement system,' says Hawati. Media in Arms is a media alliance comprising Chinese newspaper Sin Chew Daily, Malay daily Sinar Harian, Tamil newspaper Malaysia Nanban, local news broadcaster Astro Awani, and The Star.
Malaysia Sun
4 days ago
- Business
- Malaysia Sun
Malaysia's producer price index down 3.6 pct in May
Xinhua 26 Jun 2025, 13:45 GMT+10 KUALA LUMPUR, June 26 (Xinhua) -- Malaysia's Producer Price Index (PPI), which measures price changes at the producer level, declined further by 3.6 percent in May, following a 3.4-percent decrease in the previous month, official data showed Thursday. The Department of Statistics Malaysia (DOSM) said in a statement that all other sectors recorded year-on-year declines in May, except the agriculture, forestry and fishing sector. The mining sector continued to register a double-digit decline, down by 15 percent, while the manufacturing sector declined by 3 percent. Similarly, the electricity and gas supply sector decreased by 1.1 percent. The water supply sector declined marginally by 0.2 percent. In contrast, the agriculture, forestry and fishing sector remained on an upward trend, albeit at a slower pace, increasing by 1.8 percent. On a month-on-month basis, the PPI for local production went down by 1.1 percent in May, as compared to a 1-percent decrease in April.
The Star
4 days ago
- Business
- The Star
Malaysia's PPI declines 3.6% in May 2025
KUALA LUMPUR: Malaysia's Producer Price Index (PPI) declined by 3.6 per cent in May 2025, following a 3.4 per cent decrease in April, according to the Department of Statistics Malaysia (DOSM). Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said all sectors recorded year-on-year (y-o-y) declines in May, except for agriculture, forestry, and fishing. The mining sector continued to experience a double-digit decline, down 15 per cent (April 2025: -17.8 per cent) due to significant decreases in the indices of crude petroleum extraction (15.7 per cent) and natural gas extraction (13.1 per cent). "The manufacturing sector declined by 3.0 per cent, after a 2.6 per cent drop in the previous month, dragged down by key subsectors such as manufacture of coke and refined petroleum products (-15.4 per cent) and manufacture of computer, electronic and optical products (-6.9 per cent). "Similarly, the electricity and gas supply sector decreased by 1.1 per cent, while the water supply sector declined marginally by 0.2 per cent," he said in a statement today. On a month-on-month basis, Mohd Uzir said PPI local production went down by 1.1 per cent in May 2025, compared to a 1.0 per cent decrease in April 2025. "The agriculture, forestry and fishing sector declined by 5.4 per cent, due to a significant drop in the growing of perennial crops index (9.1 per cent), while the mining sector also decreased by 2.3 per cent, due to the (fall in the) extraction of crude petroleum index (2.1 per cent). "The manufacturing sector decreased by 0.5 per cent, weighed down by declines in manufacture of coke & refined petroleum products (2.1 per cent) and manufacture of food products (1.1 per cent)," he noted. Looking at selected countries, Malaysia's chief statistician said the PPI of the United States recorded a 2.6 per cent increase and Japan a 3.2 per cent expansion, while China posted a 3.3 per cent decline and Thailand a 3.7 per cent contraction.- Bernama
