PUTRAJAYA: Over 4,700 workers have lost their jobs in the first 16 days of April, says Akmal Nasrullah Mohd Nasir.
The Economy Minister said the second quarter of 2026 (Q2) would be a critical period for the local job market.
Citing data from the Social Security Organisation's (PERKESO) Employment Insurance System (EIS), he noted that 4,708 workers had been retrenched in the first 16 days of April.
"While this does not indicate a large-scale crisis, past experience shows that the impact of energy cost shocks on employment appears after a slight delay," he said during a press conference on Tuesday (April 21).
"The second quarter of 2026 will be a crucial period to assess whether cost pressures faced by companies are translating into operational reductions or job cuts," he said.
He said Malaysia's inflation rose to 1.7% in March, driven largely by a 1.6% increase in the transport group.
Akmal Nasrullah noted that the effects of the global supply crisis have seeped into domestic logistics and daily expenses, exacerbated by the recent average price hikes for RON97 petrol and commercial diesel in the peninsula.
Despite these pressures, he assured that the country's economic fundamentals remain intact, with projections of a robust 5.3% GDP growth for the first quarter of 2026.
However, he cautioned that these figures do not mean the economy is out of the woods.
"Instead, it shows us that the country's economy is still holding up in the face of external pressures that have not subsided," he added.
Global oil markets have been thrown into turmoil following the disruption of shipping through the Strait of Hormuz, triggered by the Middle East conflict.
As of Tuesday (April 21), Brent crude is trading at about US$94 per barrel compared to US$72 before the conflict started.
In early April, Finance Minister II Datuk Seri Amir Hamzah Azizan said that the cost of petrol and diesel subsidies borne by the government had risen to RM6bil.
