The current economic meltdown is expected to increase the unemployment rate in the State. In a recent news article in the Star (January 9, 2009), it reported that some 600 Penangites are likely to lose their jobs in the coming months. The Penang Labour Department confirmed that about 10 foreign and local companies in Penang have notified the department of their impending VSS (Voluntary Separation Scheme) and retrenchment.

As companies in Penang are bracing themselves for the worst as the US economy plunges further, more people are expected to be out of job in the near future. Taking the current situation into consideration, the State Government is taking a pro-active initiative to alleviate the in employment situation by setting up the Career Assistance & Training (CAT) Task Force.