Ipoh Boy Journey To The World: The Pitfall of Malaysia Economy 2016 - 2018 (Mega Companies Closed Down & Retrenchment)

Tuesday, March 20, 2018

The Pitfall of Malaysia Economy 2016 - 2018 (Mega Companies Closed Down & Retrenchment)

As part of the newly graduated working force in 2016-2018, the employment scene in Malaysia really does not/ did not look good at all. Given that you went through a 3 to 4 years course with expensive tuition fee, eventually you either end up jobless or stuck with a low-pay job. That's reality in Malaysia now! For the past 3 years, how did Malaysia's economy fare under the "great leader" of the century, Prime Minister Najib?

Summary from 2017/18 on Malaysia's Public Image
  • Malaysia's No. 1 Current Concern > Corruption [1]! Even though our "beloved" Prime Minister's personal account was proven to be valid and legal to accept donation from unknown royalty from Saudi (by our own legal system?) [2], 1MBD is still plagued with major financial loopholes and scandals on global-scale corruptions in several major countries. That's why no wonder Malaysia is rated 2nd most corrupt country [3].

1) The beginning of pitfall

The reason I posted this, because professionally and personally, I am in this deep shit as well! To be honest, job opportunities are available from time to time, but often depending on the suitability, experience and qualifications. Of course, job market has become the most critical aspect in Malaysia, especially with so much hurdles, changes and even uncertainties due to mainly governmental issue....(speculate yourself ^^). 

Perhaps, starting from 2013, the hiatus started when oil and gas sector in Malaysia experienced an unforeseen downtime. With the establishment of 1MBD, the economy and justice system continued to deteriorate. With so much debts, Government and Service Tax (GST) kicked in to "save the day" by squeezing the local's hard-earned money. There came the Malaysia Ringgit pitfall to worsen the situation. 

Well, you don't need a PhD to figure out what's the root cause of those industrial demises in Malaysia. Yet, our "best" Financial Minister still today, since yesterday, claimed that Malaysia's economy was booming. Given his track record, the title of Asia's Worst Financial Minister has never been that easier flying into his arms [4]. Implementation of GST at high percentage wasn't that smart to begin with. Thus, our government single-handedly killed off many barely surviving shops and drove off mega foreign investors. 

2) The overall picture from 2016 - 2018

Without delaying, let's check the summary of table below for the status of some companies in Malaysia 2016-2018 (Darn, I used a few hours to do this!!!):

Ok, let's be fair in this case. Not all outlet closures in Malaysia were due to bad economy or bad governmental policies. However, the butterfly effect can be seen. Every little adjustment/ gesture from the government can easily alter the ultimate outcome. The number of workers affected over 2016-2018 were thousands, ten thousands or maybe more. From F&B to heavy industries, basically none of the sectors were exempted from the retrenchment.

3) Reality check 

The question now, where is Malaysia heading? Will the current economic scene persist until 2018/ 2019? There's high possibility, because solely on 2015, there were about 20k Malaysians lost their jobs [5].

The beginning of 2018 was not that promising either, with major clothing lines pulling out from Malaysia' market. The table above only reported the major closures of mega industries. Reality is that, other sectors are not doing that well too. For example, the closure of health clinics from 2014 to 2016 was about 500 clinics [6]. Last year in 2017, about 33 colleges were closed down by Higher Education Ministry due to non-compliance [7]. Statistically, these numbers are really not favorable. 

More importantly and worrying, Malaysia has no identity after its major shortfall in oil and gas sector. It makes us ponder, is our country's economy too relying on natural resources? So, what else does our country have? 
  1. Education: None of our universities made it into top 100. Singapore has two famous universities simply making into the prestigious ranking.
  2. Tourism: Well, still far weaker comparing to our neighbouring countries like Thailand.
  3. Manufacturing: Obviously, Vietnam and Indonesia have lower operational costs and cheaper man force 

4) Wake up

Personally, I don't know anymore. Even for me, looking for a decent job in Malaysia is not a simple task. My parents are so worried, which I feel powerless of. Malaysia has stopped to provide its people comfortable working environment and stable livelihood. Every day, we are living in fear, thinking of our future and worrying when will be our turn to be axed. So, what should we be doing next? 

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Twilight Man said...

Hello boy! Remember me???

Oh dear, your post is so scary and gave me goose bumps to read all the demographics which is sadly a reality that is sending us into dumps. If they don't evaporate into thin air after the GE14, I better disappear from this place. Wanna follow me or should I follow you? LOL

Why did you come home? I told you to get married there and migrate lah.

Ipoh Boy Journey said...

TM - hahahaha, u r the forever blogger. Of course, I rmb u!!!
LOL, just a nice post before election mah! BN's report card looked so awful now!

Jom, take me away too!!!!

foongpc said...

Wah! Long time did not comment here!! LOL. Eh, so negative lah this post. I feel depressed after reading it.

Ipoh Boy Journey said...

@Foongpc. hahahaha ~ dun be, it is just economy and bad politics lo!

Twilight Man said...

You are so lucky that FoongPC dropped by to your blog. I would kena lottery if he comes to mine!!

Ipoh Boy Journey said...

TW - hahahaha, i beg him to come le. He is a blogger Male God (^^)