The country's economy is expected to recover next year by recording a positive growth that will create employment opportunities, said Deputy Finance Minister Awang Adek Hussin.

He said the confidence and projection hinged on the growth of the world economy as it was heading towards recovery.

"In the first and second quarters, the country's economy had registered negative growth like the world's economy.

"However, the contraction of the country's economy at the end of the second quarter was smaller at 3.9 percent against between six and seven percent in the previous quarter," he told reporters today.

Awang Adek said for Malaysia, the retrenchment experienced during the economic slowdown was a temporary experience.

"As the economy picks up, the investment will increase, definitely more jobs will be created. Retrenched workers will be rehired.

"The export earnings had declined by 20 per cent but with factories resuming operations, they will reemploy the retrenched workers," he said.

Awang Adek said most of the retrenched workers attended skill courses conducted by the Human Resources Ministry during the period of their unemployment.

- Bernama