H1 2019 will see retrenchments in construction and property sector

If we have been following the news from the construction sector, we would know that the sector is reeling from some of the mega projects cancellation and postponement. One latest one was recent too: LRT 3 is important. Please manage it well. There’s another update about the employment in the construction and property sector. Here’s that article in TheEdgeMarkets.com Recruitment agency Randstad says that Malaysia’s construction and property sector is likely to see retrenchments in the first half of this year. In its 2019 market outlook report, it says that bulk hiring activities have slowed down since May 2018 and companies have since focused on getting their projects approved or reapproved by the new government.

The agency also shared that the government’s decision to prolong duration of projects could save money but it will cause the demand for manpower to drop. It said, “Companies will not need to mass hire people to complete the project within a relatively short period of time. With the extended deadlines, companies can hire fewer people for the project, spreading the manpower cost across a longer period.” It added, “Unfortunately, this means that retrenchments will likely take place in the first half of 2019.” It however concluded on a positive note. It said, “Depending on the individual’s work experience, there is a high possibility that these candidates are able to receive job offers from other companies quickly.” Here’s that article in TheEdgeMarkets.com

I think it’s important to note that some sectors are more cyclical than others. This is the reason why it’s important to keep upgrading our skills because we do not know when that extra knowledge or skill may be the reason for us not to be retrenched of the reason we are able to find the next job quickly. At the same time, it’s very important to save, invest and increase whatever we have because during rainy days, these will become important too. Here’s an earlier article: Investments? Minimising, Maximising and Solidifying. By the way, all these do not mean Malaysia is going into a recession yeah. Our economy is expected to still grow between 4.5 to 5 percent for 2019 based on predictions thus far. Happy understanding that it’s not all gloom and doom.

written on 18 Jan 2019

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