Employment opportunities will be bleak for the next six months as companies face tight cash flow problems, said KPMG (North) head Datuk Ooi Kok Seng.
“Many companies have just resume their operations and the heads are just starting to assess their human resources needs.
“They are now studying whether they need to reset their businesses or to maintain the current headcounts.
“There are factories that we know of that have suddenly experienced a steep plunge in orders. These are the companies that will have a tight cash flow to sustain their operations, ” he said.
Ooi said companies would usually engage new staff because there is an attrition.
“Now, because there are many uncertainties regarding the future, most companies have stopped taking in new employees. The attrition rate, therefore, has come down.
“There won’t be any clear signs of where the economy is heading until perhaps after the second quarter of 2020. That will be when companies may start to plan on recruiting again, ” he added.
According to INTER, most companies will continue to reduce their intake as current headcount is able to sustain their production needs.
“With current pandemic, the companies have their order reduced or cancelled, causing the production to slow down. This slowdown have affected the overall needs to headcount to meet the demand therefore causing unemployment to increase.”
Free Industrial Zone, Penang, Companies’ Association (Frepenca) committee member Datuk Heng Huck Lee said for the next six months, most electronics companies would continue to experience gradual recovery of business loading.
“Although there may be a seasonal surge in orders for electronics companies around September and October, for the most part of the season, the business environment would continue to be depressed until April 2021.
“Our members will have minimum new intake over the next 12 months.
“For fresh graduates, I would think the job opportunities will be limited, ” Heng added.
Small and Medium Association Malaysia (Samenta) national secretary SH Yeoh said the government could absorb some of the fresh graduates on contract as a temporary measure.
“The government could also subsidise half the salaries of fresh graduates up to RM1,000 if they draw a salary of RM2,000 from small and medium enterprises (SMEs).
“The government could also encourage them to be entrepreneurs and provide interest-free soft loans up to RM50,000 as seed capital.
“Of course, prospective entrepreneurs would need to propose a viable business plan, ” he said.
Source: The Star, 03 June 2020