JOHOR BARU: The government is closely monitoring the labour market and taking steps to safeguard employment as global supply chain disruptions continue to pose risks to economic activity, says Datuk Seri Akmal Nasrullah Mohd Nasir.
The Economy Minister said that employment remained one of the key indicators being tracked by the government, noting that the impact of economic shocks on jobs typically takes longer to materialise compared with other economic indicators.
“Unemployment in April increased compared with March, but overall it was still lower than in January. This means the full impact of the current crisis has yet to be reflected in the labour market,” he told reporters after attending a korban programme at Masjid Jamek Bandar Baru Uda here on Saturday (May 30).
Akmal, who is also Johor Baru MP, said the government’s immediate focus since the start of the crisis had been to ensure the continuity of economic activities by addressing supply-related concerns, particularly energy security.
He added that Malaysia’s oil supply was expected to remain sufficient until the end of July, providing some assurance to industries and the public.
“We need to ensure economic activities can continue. Industries must be able to operate and maintain production, which in turn helps preserve jobs,” he said.
Akmal added that the government had also allocated funds under worker protection measures, including the wage subsidy programme (PSU) and employment insurance schemes, to cushion the impact on workers should economic conditions worsen.
He said the government was particularly concerned about disruptions involving industrial inputs, including petrochemical-related materials, which could force manufacturers to reduce production or temporarily halt operations.
“If there is a shortage of critical inputs, industries may have to slow down production or close production lines. That would affect economic activity and potentially employment,” he said.
To address the issue, Akmal said the government was actively engaging with industry players and foreign governments to secure the supply of essential materials.
He said discussions on strategic supplies had been raised through the National Economic Action Council (MTEN), including ahead of Prime Minister Datuk Seri Anwar Ibrahim’s upcoming visit to Japan.
Commenting on developments in the Middle East and ongoing discussions involving the United States and Iran, Akmal said there had been some positive signs reflected in global oil prices.
He added that Brent crude prices had declined in the past week and remained below US$90 per (RM357) barrel, while spot prices were below US$100 per barrel (RM397).
“Announcements made over the past week have had a positive effect on oil prices, but the situation remains volatile. We are still monitoring developments closely, particularly because the issue now is not only price but also the availability of physical oil supplies in the global market,” he said.
Akmal said the government would continue coordinating interventions through MTEN until conditions stabilised.
