UOB Group’s Senior Economist Julia Goh and Economist Loke Siew Ting assess the latest jobs report in Malaysia.“Malaysia’s unemployment rate declined further to 3.5% in Feb after holding unchanged at 3.6% since Oct 2022. This brings the labor market closer to full employment as Bank Negara Malaysia has guided that the economy is technically at full employment if the national unemployment rate reaches 3.3% .
“The recent performance of Malaysia’s labour market remains in line with our expectations amid continued government initiatives. A persistent upturn in tourism-related industries, which are anticipated to be further boosted by the resumption of China’s tourist arrivals, will continue to be the tailwinds for the nation’s labour market recovery ahead, together with compelling foreign direct investment inflows.