RAM Ratings expects Malaysia’s unemployment rate in 2020 to reach 4%-4.5%, higher than the baseline of 3%-3.5% in normal times, as the nationwide cessation of non-essential business activities during the strict lockdown periods of March and April triggered swift and sudden job losses.
“Sector-wise, the tourism-related and manufacturing sectors show a disproportionate number of redundancies compared to the overall workforce. The key economic centres of Kuala Lumpur, Selangor and Penang also recorded higher job losses relative to the national worker distribution. These states could also face setbacks from the dearth of tourism activities and business travellers amid global lockdowns,“ said RAM.
The services sector was still underperforming, however, with the overall retail services capacity at 62% in June. Meanwhile, the tourism & hospitality and construction sectors continue to struggle, registering 40% and circa 65% capacity utilisation rates by our estimates.
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