THE Manpower Department anticipates some 100,000 people in Malaysia to be retrenched by April.

Quoting the department's director-general Datuk Ismail Rahim, Sin Chew Daily reported that in view of the alarming number the Government must be well prepared to handle the situation.

Citing Singapore as an example, Ismail said the island city was prepared to retrench all its 300,000 foreign workers, of which 200,000 are Malaysians.

On plans by employers to cut their employees' salaries, Ismail advised employers to have a dialogue with employees to inform them of the company's plans.

'This is to avoid any lawsuits,' he added.

Asked whether salary cuts were a form of retrenchment, Ismail said employers should sit down with their workers and show them the facts and figures.

He also said that if employers wanted to cut the salary of their workers, the workers should be informed of how long the cut would last.