Highly Skilled Workers Face Highest Job Losses in Malaysia, Study Finds

Highly skilled workers are disproportionately losing their jobs in Malaysia, a trend that challenges common perceptions, according to recent analysis by Maybank Investment Bank. Between 2021 and 2025, these skilled professionals, including managers, technicians, and associate professionals, accounted for more than half of all employment terminations. This pattern continued into the first five months of 2026, with skilled workers still recording the highest number of layoffs.

The research firm noted that this situation contrasts with the general belief that lower-skilled workers are more vulnerable during company downsizing. Maybank Investment Bank suggests that a contributing factor might be the tendency for highly skilled employees to accept Voluntary Separation Schemes (VSS), Mutual Separation Schemes (MSS), and early retirement packages.

Data from the Social Security Organization (Perkeso) reveals a significant increase in layoffs, with nearly 39,000 workers terminated between January and May 2026. This figure represents a 36% rise compared to the same period last year. The manufacturing and service sectors reported the highest number of layoffs, primarily due to business downsizing and company closures.

However, the Malaysian labor market remains robust, characterized by full employment. This stability is supported by post-pandemic economic recovery and sustained economic growth. Maybank Investment Bank highlighted that laid-off workers are being absorbed back into the job market, with a placement ratio of 1.5 jobs for every laid-off worker from January to May this year. Furthermore, the expansion of the informal sector, including micro-enterprises, the gig economy, and freelance work, is mitigating the impact of job losses by offering alternative income streams.