The global financial crisis has been hit hard the Malaysia economy and give
the negative impact on overall economy and the labor market. According to
World Bank Report 2009, Malaysian exports fell by 33.9 percent year-on-year
in January and by 35.9 percent in April 2009. Since the beginning of the crisis
the unemployment rate has increased compel the government to find the best
solution in mitigating the impact of the financial crisis. Through the stimulus
package introduced by the Malaysia Government, this policy has played a huge
role in promoting employment by giving the tax exemption for doing business
as well as stimulating the automobile industry by giving the rebate to buy a new
car. The government allocating over RM60 billion aims to increase the
employment through on job training programs organized by private sector and
government link companies (GLC) especially for graduate. Through this
program it able to create 50,000 vacant post and 13,000 contact posts in the
public sector. Under the stimulus package, the government also allocate over
RM19 billion to building the capacity for the future where RM2.4 billion has
been spent for telecommunication, RM250 million for airport to expand the low
cost carrier terminal (LCCT) to attract vacationers by adding the frequency of
airways operation. Needless to say, the strategies taken by Government under
the stimulus package able to drive Malaysia economy out from the great
recession as hit by the neighboring countries.
