The impact of the covid-19 on the Malaysia financial institution between 2019-2020
Based on the global economic meltdown or downturn at the onset of the COVID-19 outbreak and the predictions of the International Labor Organizations(ILO) and the Malaysian Global Innovation and Creativity Centre, the domestic labor market in Malaysia would expectedly feel the adverse impact of shutdowns/winding up of and deplorable economic or commercial performance of many the domestic firms, companies, or business organizations.
Due to the expected economic downturn in the domestic economy and its inclement impact on the performances of domestic businesses, the overall labor demand by the firms or companies would decrease in the domestic labor market in Malaysia as they would be looking to reduce the overall capacity of the existing productive resources or factors/inputs of production as part of the cost-cutting endeavor to maintain formidable or desirable profitability. This would consequently cause or increase unemployment and a decrease in the labor wage in the labor market at least in the short-run, holding everything else as constant, mainly the labor supply in the market. Therefore, in congruence with the predictions of global economic predicament due to the universal engulfment of the COVID-19 pandemic, the Malaysian economy and the labor market are also expected to feel the adverse economic effects of COVID-19 pandemic.