Make retrenchment planning part of financial management

RECENT data on the Malaysian labour market show that retrenchment remains a relevant concern even amid low overall unemployment. In 2025, about 14,400 workers were retrenched, slightly higher than in 2024, as companies adjusted their workforce structures across sectors like services, manufacturing and financial services.

For years, retrenchment has been viewed as a challenge faced primarily by lower-income groups. Today, that perception is steadily changing. Corporate restructuring, digitalisation, automation and global economic uncertainty have reshaped the employment landscape, placing M40 and T20 professionals increasingly within reach of workforce downsizing.