Malaysia's jobless rate seen steady at 3pct in 2026

KUALA LUMPUR: A report from MBSB Research predicts Malaysia's jobless rate will remain steady at 3.0 per cent in 2026, mirroring the 2025 figure. This stability is attributed to ongoing job creation in domestic services and robust consumer spending. The 13th Malaysia Plan, National Semiconductor Strategy, and Gear-Up initiatives are expected to further stimulate economic transformation, fostering high-skilled job creation and wage growth.

A potential factor here is an anticipated rise in the minimum wage, which could be announced in the 2027 Budget as the National Wages Consultative Council reviews the current RM1,700 monthly rate.

Malaysia's labour market has demonstrated resilience, maintaining an unchanged unemployment rate of 3.0 per cent for the fourth straight month in July. Recent data indicates that any signs of softening have dissipated after revisions to previous figures. Labour demand also saw a significant boost in August, with job vacancies increasing by 126,200 to 368,600 from 242,400 in July.

MBSB Research suggests that stable labour market conditions and rising household income should keep supporting private consumption and overall economic expansion.

The monetary stance and domestic demand are expected to act as buffers against external and geopolitical challenges. Simultaneously, the electrical and electronics sector's pivot towards advanced AI-related chips could bolster high-skilled employment.