Malaysia likely to face similar challenges in 2021.
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Data collected from 2020 revealed that Malaysian working in the public and private sector were making 9% less compared to the average wage and salaries people made in 2019.
A report released by the Malaysian Statistics Department (DOSM) shows that the rakyat’s mean monthly earnings fell to RM2,933 in 2020 compared to an average of RM3,000 employees would earn between 2018 and 2019.
This decline, DOSM says, is the first time such a thing has happened since 2010 – caused by the effects of the Covid-19 pandemic and the implementation of the nationwide Movement Control Order (MCO) in 2020.
DOSM Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin was quoted saying “throughout the year 2020, Malaysia’s labour market experienced uneven momentum following health crisis and economic consequences. This had caused job losses as well as cancellation or freezing of new hires and subsequently resulting in total employment to decline.”
He added the strict Covid-19 rules also led to reduced business, operation and working hours, resulting in the drop.
The Chief alluded that Malaysia will face similar challenges in 2021 as daily cases remain high, but he is optimistic that things would improve.
Continuous initiatives are implemented in paving the way towards economic recovery supported by the numerous stimulus packages to ensure business sustainability. Hence, as the country’s economic situation improves, it will lead to the recovery of the labour market and subsequently help to bring up the salaries and wages earned by employees.DOSM Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin via CNA.
DOSM’s data also shows that in 2020;
- Wages and salaries for skilled workers declined the most compared to those in semi-skilled and low-skilled jobs.
- The median and mean monthly earnings for men were higher than women by 2.6% and 3.7% respectfully.
- Employees between the ages of 34 and 44-years-old earned more than those between 45 to 54-years-old.
- Malaysian Chinese were earning more than the Bumiputera, Indian and other races.
- The places with the highest wage and salary in Malaysia was Putrajaya, Kuala Lumpur and Selangor (in that order).
- Malaysians living in urban areas made more than those in rural areas.
For more details, check out DOSM’s full “Salaries & Wages Survey Report, Malaysia, 2020” (HERE).
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