SHAH ALAM - The real challenge heading into 2026, is no longer about creating jobs, but about ensuring those jobs are decent, secure and sustainable.
This included providing workers with fair wages, social protection and long-term stability in an economy that is becoming increasingly flexible and fragmented.
Malaysian Trades Union Congress president Datuk Abdul Halim Mansor said employability must be viewed through a wider lens, one that connects economic development, workers’ lifestyles, living conditions and fair labour standards, in line with the International Labour Organisation’s Decent Work Country Programme (DWCP), which Malaysia supports.
He said Malaysia’s heavy reliance on foreign workers, particularly in construction and plantations where they make up more than 90 per cent of the workforce, reflects deeper structural problems.
While MTUC does not oppose migrant labour, he highlighted a clear discrimination.
“Local workers contribute up to 24 per cent to social security schemes, while foreign workers contribute around four per cent, making migrants far cheaper to hire.
“If you were an employer, why would you hire locals?” he said, warning that such policies indirectly discourage local employment and weaken the labour ecosystem.
He stressed that once a worker enters Malaysia, whether they are local or foreign, they should enjoy equal protection under labour laws, including wages, working hours, medical coverage, leave and social security, in line with international conventions.
He said the rise of gig and freelance work is another major concern heading into 2026.
While more than 1.2 million Malaysians are estimated to be gig workers, he said protections remain limited and unclear.
“Many gig workers fall outside traditional employment definitions, leaving them vulnerable when accidents, disasters or disputes occur. Without clear terms of employment, workers are often forced to seek justice through the courts, a costly and uncertain process.
“Recent steps such as extending accident coverage are welcome but why does the protection stop there?
“Why only accident coverage? What about retirement savings and long-term security?” he said.
He said without discipline, certification and structured protection, gig work risks becoming survival labour rather than a recognised profession.
He said each year, around 500,000 young Malaysians enter the job market, yet workforce planning remains weak.
Universities, he said produce graduates without strong alignment to industry needs, while employers complain of labour shortages.
“Malaysia lacks widely recognised job certification systems, unlike developing countries such as Australia, where locals dominate technical and construction jobs due to clear skills accreditation.
“The result is underemployment, career mismatch and a steady outflow of local workers from key sectors.
“Matching education, skills and industry needs is critical if we want to retain local workers,” he said.
Speaking about layoffs, he said automation and cost-cutting have made retrenchments easier, while outsourcing to foreign workers or agencies allows employers to avoid long-term commitments.
He said when layoffs happen, especially to older workers, many are pushed into informal work or street-based micro-businesses just to survive, often involving family members, including children.
“This is how workers fall through the cracks. Without strong social protection, workers cannot recover once displaced,” he said.
Employability, he stressed, could not be separated from infrastructure and regional development.
He said poor logistics and uneven industrial planning push workers towards major cities, driving up living costs and congestion.
Balanced development with ports, logistics hubs and industries spread across states would allow people to work closer to home, stabilise living costs and create new growth centres.
“When development is concentrated in one place, everything becomes jammed,” he added.
As Malaysia enters 2026, he said the country faces a defining test: whether it can sustain growth without sacrificing workers’ dignity.
"Industries can relocate easily, but workers cannot.
"Without fair wages, equal protection, proper planning and strong domestic industries, Malaysia risks becoming a country where people are employed, but insecure.
“Decent work is not just about income. It is about security, discipline and the future of society and without that, Malaysia’s employability gains may prove fragile and fleeting,” he added.