Real labour incomes could plummet by RM13.2 trillion (US$3 trillion) by 2027, further straining an already struggling global economy, warned the International Labour Organization (ILO).

ILO chief economist Sangheon Lee, author of the “Employment and Social Trends May 2026 Update” report, said this projection stems from the widening fallout of the West Asia crisis, which has evolved from a regional conflict into a “slow-moving shock” affecting Asia and the Pacific.

“What begins as an external shock eventually reaches...