He said the displacement of workers due to changes in technology and industrial structures was a feature of the knowledge-driven economy, even in good times.
“This is also true for Malaysia as we transition from a labour intensive to knowledge-driven economy.
“It is therefore incorrect for some quarters to allege that 50,000 workers will be retrenched primarily due to the rising cost of doing business,” he said in a statement yesterday.
Last Wednesday, theSun daily reported that over 50,000 Malaysians were expected to lose their jobs in 2018, with Malaysian Employers Federation (MEF) executive director Shamsudin Bardan saying the manufacturing sector would be the most affected.
In the report, Shamsudin attributed the expected turn of events to several factors, including the Employee Insurance Scheme (EIS) and the levy imposed on employers for hiring foreign workers.
The daily also quoted Malaysian Trades Union Congress (MTUC) president Abdul Halim Mansor as saying he had been informed by the Labour Department that 30,000 to 50,000 people could be retrenched this year.
Mustapa said although retrenchments would occur, most of these workers would likely be re-employed by new and expanding businesses.
He added that the total number of retrenchments this year might not be as high as alleged.