(AFP) Retrenchments are on the rise in Malaysia amid an export slowdown and the global economic downturn but there are "pockets of cheer" in the gloomy climate, a minister said today.

Human Resources Minister Fong Chan Onn said job vacancies in the country still exceeded the number of workers given the boot.

From January to October this year, Fong said some 107,000 jobs were available compared to 37,000 retrenched in the same period or more than three vacancies for every person retrenched.

In the first nine months this year, he noted there were also far more vacancies than retrenchments in all four major economic sectors -- agriculture, manufacturing, trading and finance.

"Although retrenchments were the highest in the manufacturing sector with 22,593 workers during the first nine months of the year, it also recorded the largest number of vacancies (of) 46,144 jobs," he was quoted as saying by Bernama news agency.

Voluntary separation scheme

In addition, Fong said retrenchments were conducted in an orderly fashion through voluntary separation schemes providing employees some funds to either start their own business or upgrade their skills.

He noted that consumer spending remained strong despite a significant rise in retrenchments.

"A sustained rise in housing loans suggests consumer confidence in the country's long-term prospects remain strong. It also suggests consumers are confident their jobs are secure in the foreseeable future.

"In short, although job prospects may be challenging, there is little cause for panic let alone despair," Fong said.

"Despite the challenging job prospects in the short term, there are distinct pockets of cheer in this gloomy climate."

Electrical and electronics goods comprise about 60 percent of Malaysia's exports. Almost 21 percent of all Malaysia's exports go to the United States, making it vulnerable to the economic slowdown there.

The government this month revised downwards its 2001 economic growth forecast for a second time to 1.0-2.0 percent because of the "greater-than-expected" slowdown in the world economy.