Informal employment sector on a downtrend, says World Bank report


Ministry of Economy Deputy Secrretary General [Policy] Datuk Dr Zunika Mohamed during press conference aftre the launching of Informal Emplpyment of Malaysia Trends, Challenges and Opportunities for Reform reports at Sasana Kijang on February 26. - AZMAN GHANI / The Star

PETALING JAYA: The World Bank Group expects Malaysia’s informal employment sector to decrease to 21% by 2040, depending on whether productivity growth and the relative growth of labour costs continue to trend upwards.

The “Informal Employment in Malaysia” report by the World Bank reported that the sector has exhibited a consistent decline, which dropped from 30.5% in 2019 to 26.8% in 2022, translating to about 4.1 million workers.

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