1.

Introduction

THE GOVERNMENT'S EFFORTS TO SUPPORT THE LABOUR MARKET CONTRIBUTED TO

STABLE PERFORMANCE, RESULTING MORE JOBS AND REDUCING UNEMPLOYMENT IN
2022
While developed countries economies grew more slowly in 2022, Southeast Asia's economy
recovered strongly from the 2021 recession. In the meantime, Malaysia's economy recovers
progressively, driven by both internal and external demand. The Malaysian government has
implemented steps measures to increase employment opportunities and strengthen the labour
market, resulting in strong performance in the country’s labour market. In 2022, Phase 4 of the
National Recovery Plan (NRP) was implemented in every state has led to an improvement of the
economic performance. Businesses were allowed to stay open longer and regulations were
eased, allowing major events and social gatherings to resume in accordance with to the standard
operating procedures (SOPs). As the nation adjusted to a new norm, the labour force
strengthened further due to continued economic and social activities, despite the COVID-19
surge.
In March 2022, the Omicron wave hit the country with 24,000 daily cases which is the highest
cases since 2020. The National COVID-19 Immunisation Programme (NIP) has increased the
vaccination rates and decreased the death rates, providing some solace to the community.
Meanwhile, all business operation remained as usual, which even they need additional labour for
operational needs, thus resulting in job opportunities. At the same time, the transition to an
endemic phase took place, causing the international tourism sector reopened in April 2022 and
has revitalizing tourism-related industries that had been hit by the COVID-19 pandemic.
Additionally, Malaysians and all Muslims around the world celebrated Ramadan and Aidilfitri,
known as an appealing period for small businesses and cross-industry businesses, which boosts
the economy and extra opportunities for labour market. With all of these ideal conditions, the
reopening of the country's border allowed for a more robust economic performance, allowing
Malaysians to return to normal life after three years of pandemic-related struggles.
The reopening of international borders and the gradual normalisation of all economic activities in
line with the endemic transition phase, supported by government initiatives to achieve sustainable
economic growth, contributed to further strengthening Malaysia's labour market recovery during
the first half of 2022. The United Nations World Tourism Organisation (UNWTO) reports that the
majority of tourism professionals expect brighter prospects for 2022, with 61 per cent of them
anticipating a return to normal. Despite the fact that 58 per cent predict a rebound in 2022,
primarily in the third quarter, only 42 per cent believe one would occur in 2023. The majority of
experts (64%) predict tourist arrivals to return to 2019 levels only in 2024 or later, up from
45 per cent in the September study1.The depreciation of the Malaysian Ringgit (MYR) against the
United States Dollar (USD) benefited the economy and strengthened Malaysia's tourism image
as an attractive destination for foreign visitors. Moving on to July to September 2022, additional
public holidays and school breaks were celebrated as a result of the Aidiladha celebration in July,
followed by the Independent Day of Malaysia in August and the National Day in September 2022,
which was seen to flourish tourism activities and related sectors. This positively impacted the
tourism sector, attracting over 3.21 million tourists and generating RM9.35 billion in tourism profits,
almost reaching the nation’s target of 4.5 million visitors. In 2022, economic activity continues to
rise which positively boosts the market demand for goods and services in the market and also
1
https://www.tourism.gov.my/files/uploads/TM_Marketing_Plan_2022_2026.pdf

LAPORAN SURVEI TENAGA BURUH | 2022 28

LABOUR FORCE SURVEY REPORT | 2022 28