KUALA LUMPUR (June 26): Future labour market interventions should focus not only on unemployment but also on underemployment, skills mismatches and the growing issue of workers being employed below their qualifications and capabilities, the Malaysian Employers Federation (MEF) said.

Its president Datuk Dr Syed Hussain Syed Husman said while Malaysia already has one of the most comprehensive support systems for displaced workers in the region, the next step should focus on workforce adaptability.

“Employers stand ready to work closely with the government to create more employment opportunities and improve workforce competitiveness,” he said in a statement Friday.

He said stronger collaboration among the government, employers and workers is needed to build a more resilient labour market that benefits businesses and Malaysians seeking meaningful and sustainable employment.

Meanwhile, he welcomed the government’s continued commitment to protecting workers affected by job losses and supporting their return to the workforce through a comprehensive ecosystem of labour market institutions, social protection mechanisms, as well as reskilling and upskilling initiatives.

“Recent reports on job losses have understandably raised concerns among workers and their families. However, Malaysia remains among the few countries in the region that have established an extensive and coordinated support framework to assist individuals who lose their employment,” he said.

Syed Hussain said Malaysia’s support system for displaced workers is among the most comprehensive in the region, driven by the Ministry of Human Resources, the Social Security Organisation (Socso), the Employment Insurance System (EIS), Human Resource Development Corporation (HRD Corp) and Talent Corporation Malaysia (TalentCorp).

He said the system reflects the government’s recognition that unemployment is not only an economic issue but also a social concern requiring coordinated intervention involving government agencies, employers, training providers and workers.

“MEF notes that many countries do not have the breadth of institutional support available in Malaysia.

“The existence of dedicated agencies focusing on social protection, employment services, workforce development and talent management reflects the seriousness with which the government addresses labour market challenges,” he said.

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