SHAH ALAM, April 16 — The higher number of job losses in Selangor compared to other states is largely due to its investor-driven industrial base, which makes companies more vulnerable to restructuring and cost-cutting measures.
State executive councillor for human resources and poverty eradication Papparaidu Veraman said that the state is home to many industries driven by both local and foreign investors, resulting in greater exposure to corporate decisions such as downsizing or business closures.
“Selangor and Kuala Lumpur are largely driven by investor-led industries, with many controlled by local and foreign investors.
“On that ground, there are many companies that may want to cut costs or close operations, so therefore there are some (job) losses," he told Media Selangor.
He was commenting on Hong Leong Investment Bank’s report, citing the Social Security Organisation (SOCSO), that Selangor and Kuala Lumpur continued to top the list of loss of employment (LOE) cases in March.
It said that Selangor accounted for 29.3 per cent of total LOE cases, followed by Kuala Lumpur at 25.6 per cent. Malaysia recorded 5,900 job losses in March, down 21.3 per cent from 7,500 in February.
Papparaidu added that in the state, certain sectors are more affected than others, particularly tourism, which has been impacted by global economic uncertainties that have dampened travel and spending.
“According to my officers, the tourism sector is the most affected because of the current global issues. Otherwise, the manufacturing sector is still going strong, and so is the service sector,” he said.
To assist workers affected by layoffs, the state government has been organising employment initiatives, including job carnivals to connect job seekers with potential employers.
“We recently had a job carnival programme at Banting with more than 45,000 job opportunities. It shows that Selangor is very stable and there are many more prospects,” Papparaidu said.
He noted that the state government is working closely with agencies such as the SOCSO and educational institutions to help match job seekers with available positions.
The councillor also stressed the importance of improving workforce skills to ensure workers remain competitive in a rapidly evolving job market.
Training programmes offered by institutions such as the Selangor Technical Development Centre, along with technical and vocational education and training initiatives, are among efforts to help residents upskill and adapt to industry needs.
