THE number of employed individuals in the country has surpassed 17.1 million, setting a historic high while unemployment rate has also fallen to 3.3%, indicating that the country has reached the status of full employment, revealed Nga Kor Ming.
According to the Housing and Local Government Minister, this data reflects the robust recovery and steady growth of Malaysia’s economy under the leadership of Prime Minister Datuk Seri Anwar Ibrahim.
“Full employment not only means more people have stable incomes and job opportunities, but it also signifies that the country’s economic vitality and productivity have been significantly enhanced,” he remarked.
Nga further noted that the upcoming increment in civil servants’ salary levels is anticipated to boost domestic consumption which will create more business opportunities for SMEs, generate more employment opportunities and drive economic growth.
Nga said this is particularly for those in the real estate and retail sectors.
“I believe the upcoming salary adjustment, which will be announced by Anwar, will create a multi-billion-ringgit impact on consumption and generate a multiplier effect for the market,” he added.
Earlier, JP Morgan has upgraded Malaysia’s rating from underweight to neutral after almost six years, crediting the country’s policy reforms, data centre investments and infrastructure build-up.
In an interview with CNBC on July 10, JP Morgan head of Asia-Pacific (ex-Japan/China), Rajiv Batra said Malaysia’s rapid pace of progress was impressive with a 4.2% gross domestic product growth in the first quarter of 2024.
Rajiv had also spoken about how Malaysia took bold measures in rationalising subsidies, including the recent one on diesel, and highlighted that those who are in need are given monthly cash assistance.
Several economic research institutions had also projected the country’s economic growth in the second quarter of this year to exceed 6% and surpass the government’s initial estimate, thereby boosting Malaysia’s overall economic performance for the year.
In the first quarter of this year, Malaysia’s economy beat market expectations with a year-on-year growth of 4.2%. Key factors contributing to this growth include increased household spending, high trade volume, and improvements in the labor market. – Aug 15, 2024
Main image: The Star
