The jobless rate “hides a lot of unpleasant things in the labor market: low pay, low productivity, low skill and a high number of foreign workers,” Zakariah Abdul Rashid, executive director of the Malaysian Institute of Economic Research, said at a conference in Kuala Lumpur in April. “Those unemployed are the youth, highly-qualified individuals who can’t get jobs.”
Foreign labor has underpinned that rebound. The central bank estimates that about 82 percent of the net jobs created in 2016 went to non-residents. Unemployment among 15 to 24 year olds stood at 10.8 percent last year, according to the World Bank, while joblessness among local graduates has increased more sharply than non-graduates since 2011, data from the central bank shows.
Documented overseas workers accounted for 12 percent of the labor force last year, after a steady decline from 16.1 percent in 2013, according to central bank data. Still, adding in the unregistered workers may boost the total amount of foreign labor to as high as 40 percent according to some estimates.
The sleeping giant of the beauty industry, “J-beauty” has woken up. Long eclipsed by the success of K-beauty, the $13bn South Korean business built on insatiable demand for innovative sheet masks, snail extract creams and convoluted skincare routines (most recently resulting in Unilever’s purchase of skin-whitening brand Carver Korea for €2.27bn), J-beauty, its older, more sophisticated sister, is now re-entering the spotlight. The Japanese business has benefited from the growth in Chinese tourists, following limits imposed on travel to Korea by the Chinese government and a surge of enthusiasm for the Olympics in 2020. Japanese beauty exports are tipped to exceed $2.75bn this year.
As Okabe puts it: “K-beauty is driven by trends, it meets those tentative needs of the consumer which are hot or of the moment, whereas J-beauty is something far more sustainable, authentic and eternal.” While J-beauty can’t possibly compete with the entrepreneur culture of Korea, which has the manufacturing speed and efficiency to bring cutting-edge trends to market quickly, K-beauty can’t compete with Japan’s far more delicate and intricate beauty rituals, their obsession with beauty (Euromonitor reports that Japan has the highest per capita spend on skincare and cosmetics) and their long-term investment in technology.