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More Employees To Be Retrenched In The Next 3 Years



More Malaysians are expected to be retrenched in the next three years, warned the Malaysian Employers Federation (MEF). This was because companies are cutting costs and moving their business to other developing Asian countries.

MEF Executive Director Shamsuddin Bardan said MEF’s research showed that a lot of companies wanted to uproot their operations to Thailand, Vietnam and Laos after the government failed to provide a positive business environment to counter the challenging global economy. He said companies are finding it hard to absorb the additional operating costs, especially after minimum wages were implemented nationwide on July 1.

This resulted in employers having to fork out more for the Employees Provident Fund (EPF) and Social Security Organisation (Socso), after salaries were increased from RM900 to RM1,000 for the peninsula and from RM800 to RM920 for Sabah, Sarawak and Labuan.
We have done our ground work. The trend is worrying. Businessmen say there are too many additional costs imposed on them
He was asked to comment on a statement by Human Resources Development Fund (HRDF) that 36,000 employees were retrenched last year. Out of that, 19,781 employees took Voluntary Separation Schemes (VSS).

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