Opinion Piece by Joshua George Varughese
Recently, it dawned on my friends and I that in a few years, many of us will be joining the Malaysian labour market after completing university education in the United Kingdom. However, as major financial broadcasters are quick to remind us, the global economy is not as robust as we would like as we enter the new year. Indeed, there are very few things that scare certain students as much as when someone says, “the yield curve is inverting” to supposedly foreshadow a loss of any future job prospects. I will not deny that things do not look incredibly encouraging but when examining certain important indicators, there is still reason to be hopeful to be working in Malaysia.
Trade diversions
When discussing the recent trade disputes between the US and China or the underlying trade issue that Brexit will create, there are undoubtedly going to be winners and losers. Malaysia in this situation however is reaping some benefits that these trade diversions bring. For instance, with the US looking for opportunities outside China (and vice versa), increased Foreign Direct Investment has made its way to Malaysia and this could help weather a potential global slowdown. This should also bolster efforts like the new trade deals between Malaysia and the UK, in regard to technology firms and lead to more such deals that could lead to more business opportunities for both nations.
Modest levels of Inflation
Although economic conditions in a macro sense seem unfavourable, it is important to remember that underlying inflation is relatively low at around 1% and this is bolstered by dovish central bank policy that is centred on promoting growth. With an overnight policy rate (OPR) at 3%, there is still room for further interest rate cuts in the future, which will ensure healthy growth levels of 4.3% in 2020. For a future worker, this is a positive sign that the trend of resilient consumer spending should not take too big of a hit as borrowing costs are pushed down.
New infrastructure projects
For anyone interested in applying in companies related to construction, there is definitely opportunities opening back in Malaysia. Projects such as the MRT2 and ECRL have been approved and in themselves should be a new source of economic growth as the country now becomes even more connected. This could then lead to external benefits such as more industries opening up near these transport links and more future employees being able to access their new places of work. This is also particularly important when looking at individual states with tenders to build roads in Sarawak also awarded, and thus allows future workers that are interested to go to Sarawak far more opportunities than before. The beneficiaries from these projects are therefore really widespread and could set up the country at what is a crucial time.
In conclusion, the advice to continuously upskill yourself and to be ready for any eventuality in the job market (advice shared during the recent MLUK Summit), is increasingly vital. Well paid jobs even in good economic times are scarce but as discussed, there are positive signs that tell us that we ought to give Malaysia a bit more credit when looking for a job. Remembering that no country is insulated from a global slowdown, there are specific reasons why Malaysia may still be a good destination to start your career. Until then, I will be applying for jobs before someone decides to start a world recession with a few tweets…
Bibliography
https://www.ft.com/content/0b39ac8a-7d02-4201-a67e-729a600205f7