UOB Global Economics & Markets Research economists Julia Goh and Loke Siew Ting highlight that Malaysia’s labour market strengthened further in 4Q25, with unemployment falling to 2.9% and participation steady at 70.9%. They expect resilient domestic growth, Budget 2026 job measures, strategic initiatives, tourism and AI-related demand to keep the unemployment rate at 2.9% in 2026, below 3.0%.
Labour strength underpins macro stability
“We expect Malaysia’s labour market outlook to remain favourable in 2026, supported by resilient domestic growth.”
“Job-related measures under Budget 2026, continued rollout of national strategic initiatives, stronger tourism activity, and sustained demand from the AI upcycle are key factors supporting employment ahead.”
“We, therefore, expect the unemployment rate to stay below 3.0% at 2.9% in 2026 (2025: 2.9%).”
“Malaysia’s labour market continued to strengthen in 4Q25, with the national unemployment rate easing below the 3.0% threshold for the first time since 4Q14, declining to 2.9% (from 3.0% in 3Q25).”
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Source: https://www.fxstreet.com/news/malaysia-stable-outlook-supports-ringgit-uob-202602112136
