UNEMPLOYMENT AT 4 PCT OR BELOW THIS YEAR, SAYS MINISTER

KUALA LUMPUR, Nov 19 (Bernama) -- Unemployment rate in the country will be at four percent or below this year despite business downsizing due to the global economic slowdown, says Second Finance Minister Nor Mohamed Yakcop.

"We should be able to hold at that rate. It's not going to be much higher
than that. That is a manageable level. We've to work hard to maintain it," he
told reporters after opening the chief financial officers' conference
2008.

Nor Mohamed said the unemployment rate would be at that level for next year
as well.

He said the RM300 million training fund announced under the RM7 billion
stimulus package should be able to minimise unemployment besides upgrading
workers' skills.

"We've seen cutting down on working hours and bonuses in Penang, but there
has been no massive lay-offs yet," he said.

Nor Mohamed said the two most testing challenges faced by the government in
any crisis are "to make sure the government can find jobs for the people and
business credit is flowing."

"We've to ensure the employed now remained employed and graduating students
can find jobs later," he said.

Asked whether retrenchment rate would be worse than during the 1997/1998
Asian Financial Crisis, the minister said: "I don't think so."

"The last crisis was different. It was a shocker to us. We were in a
periphery. The world did not suffer. Things happened so fast in such a short
period of time with the stock market and ringgit collapsing while confidence was
shaken," he said.

"Last time, retail banking was really hurt and there was a currency crisis.
This time, retail banking is not affected and there is no currency crisis. We've
got more time to really think through now. We've more advanced warning to sort
out (things)," he added.
-- BERNAMA