Over 4,700 workers retrenched in April as rising fuel costs and global tensions threaten Malaysia’s labour market outlook
PUTRAJAYA: More than 4,700 workers have been retrenched in the first 16 days of April, prompting Economy Minister Akmal Nasrullah to warn that the second quarter of 2026 (Q2) will be a pivotal period for the national labour market.
Data from the Social Security Organisation’s (Socso) Employment Insurance System (EIS) reveals that 4,708 individuals lost their jobs within the first fortnight of the month.
According to a report by The Star on Tuesday (21 April), Akmal Nasrullah explained that while the current figures do not yet signal a large-scale crisis, historical data suggests that employment sectors often react to energy price shocks with a slight delay.
“The second quarter of 2026 will be a crucial period to determine whether the cost pressures currently burdening companies will translate into operational downsizing or further job cuts,” he reportedly said.
National inflation reached 1.7% in March, primarily fuelled by a 1.6% rise in transport costs.
The Minister stated that global supply chain disruptions have filtered down into domestic logistics and everyday living expenses.
This has been further exacerbated by recent price hikes for commercial diesel and RON97 petrol across the peninsula.
The volatility is largely attributed to the Middle East conflict, which has disrupted shipping through the Strait of Hormuz.
As of Tuesday, Brent crude is trading at approximately US$94 per barrel, a significant leap from the US$72 recorded prior to the conflict’s onset.
