MIDF Research said it expects Malaysia’s unemployment rate to trend lower this year, underpinned by a further recovery in the domestic economy, continuous upbeat momentum in global trade and skyrocketing commodity prices.
MIDF Research said it expects the labour market to remain rosy, driven by the reopening of the country’s borders. “As an oil-exporting economy, Malaysia is set to benefit from soaring global commodity prices, particularly the palm oil and oil and gas sectors,” it said in a report yesterday. “With the announcement of international borders reopening, Malaysia’s labour market recovery remains on a steady path following the possible return of non-citizens workers.
In 2020, the country’s unemployment rate surged to 4.55%, the highest in 20 years as many businesses were forced to shut down due to a slowdown in economic activities as a result of the Covid-19 pandemic.