KUALA LUMPUR: UOB global economics and market research expects Malaysia's labour market to remain in a state of full employment, with the unemployment rate remaining stable at 3.3 per cent throughout the year.

UOB senior economist Julia Goh and economist Loke Siew Ting said in a note the labour market is expected to continue to show positive signs in the near term, supported by increased economic activities, including trade and tourism, as well as greater investment inflows and the ongoing execution of initiatives outlined in the national master plans.

"The advance gross domestic product (GDP) estimates showed a pick-up in economic growth to 3.9 per cent year-on-year in the first quarter of 2024 (1Q24), from 3.0 per cent y/y in the fourth quarter of 2023 (4Q23)," the note said.

"While the Minister of Tourism, Arts and Culture saw a significant influx of foreign tourists in 1Q24, totaling 5.8 million arrivals which was a 32.5 per cent increase from the 4.3 million recorded in the same period last year," it added.

Additionally, the economists said the newly announced IC design parks in Selangor and Penang are anticipated to stimulate job growth and cultivate a skilled workforce in the short-to-medium term.

"It will also underscore Malaysia's emergence as a leading digital hub in the region as articulated in the New Industrial Master Plan (NIMP) 2030," it added.

Similarly, the Ministry of Investment, Trade and Industry's (MITI) comprehensive Strategic Semiconductor Plan, aimed at securing Malaysia's position as the preferred investment destination, is slated for completion by the end of May is aligned with the initiatives outlined in the NIMP 2030.

"It would also include a more attractive incentive package to enhance the inclusion of strategic investments in high-tech semiconductors, particularly to encourage more front-end activities in the semiconductor industry in Malaysia," it said.

https://www.nst.com.my/business/economy/2024/05/1048944/economists-expect-malaysia-remain-state-full-employment-year