Malaysia is grappling with three major paradoxes in its labour market that require urgent attention, says Human Resources Minister Steven Sim.
Speaking at a press conference on Monday (Jan 20), Sim outlined the challenges: the first paradox is Malaysia's low median wage; the second involves a mismatch between graduates' qualifications and industry demands; and the third is the lack of sufficient job opportunities to accommodate the increasing number of graduates from technical and vocational education and training (TVET) as well as science, technology, engineering, and mathematics (STEM) fields.
To tackle these issues, Sim emphasised the government’s commitment to enhancing workforce skills and aligning education with industry needs through the Madani Economy Framework.
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Speaking at a press conference on Monday (Jan 20), Sim outlined the challenges: the first paradox is Malaysia's low median wage; the second involves a mismatch between graduates' qualifications and industry demands; and the third is the lack of sufficient job opportunities to accommodate the increasing number of graduates from technical and vocational education and training (TVET) as well as science, technology, engineering, and mathematics (STEM) fields.
To tackle these issues, Sim emphasised the government’s commitment to enhancing workforce skills and aligning education with industry needs through the Madani Economy Framework.
WATCH MORE: https://thestartv.com/c/news
SUBSCRIBE: https://cutt.ly/TheStar
LIKE: https://fb.com/TheStarOnline
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NewsTranscript
00:00What would be the main issue of the workforce for this year, do you expect?
00:30The unemployment rate is still low, the average salary is only about 2.7 thousand a month.
00:37So we have an issue, a paradox.
00:39The unemployment rate is low, the unemployment rate is low,
00:42it means that the workers can make an offer, they have the power to divide,
00:46because there are not enough workers.
00:47But at the same time, we see that the salary is not increasing.
00:50The second paradox is about the issue of skill.
00:55On the one hand, we get feedback from employers, from investors,
01:01saying that we need more apprentices, we need more technicians.
01:08Some even say that we need 60 thousand apprentices and technicians
01:13to meet our industry needs.
01:15But at the same time, we also find that those who have higher qualifications
01:21do not get a job equivalent to their skills.
01:28So the unemployment rate is quite high, 36.8%.
01:35So there is a mismatch here.
01:38Indeed, we need technical workers, skilled workers,
01:42but skilled workers do not get a job equivalent to their qualifications.
01:46And the third is about education.
01:49Every year, our universities give birth to more than 300 thousand students.
01:58And one third of these numbers are actually students in the STEM sector,
02:06science, technology, engineering and so on.
02:09We also have an addition of more than 100 thousand TBEP graduates in various levels.
02:15But at the same time, our economy, if we follow the trend of the economy
02:20in the next 20-30 years, we will only be able to create
02:24at least 50 thousand jobs with high skills and high salaries.
02:29So there is a mismatch.
02:31So I see that we have positive numbers, we have positive development,
02:36but we also have challenges, especially in the job market.
02:40You mentioned that Malaysia has created 50 thousand TBEP graduates.
02:47So maybe there is an increase in the number of TBEP graduates this year?
02:53There is a little mistake earlier.
02:55I did not say that Malaysia gives birth to workers, I said jobs.
02:59This is a report from the World Bank last year stating that
03:04Malaysia has created 50 thousand TBEP graduates this year.
03:09So there is a little mistake earlier.
03:11I did not say that Malaysia gives birth to workers, I said jobs.
03:14This is a report from the World Bank last year stating that
03:17Malaysia has created 50 thousand TBEP graduates this year.
03:21So there is a little mistake earlier.
03:23I did not say that Malaysia gives birth to workers, I said jobs.
03:26This is a report from the World Bank last year stating that
03:29Malaysia has created 50 thousand TBEP graduates this year.
03:32So what we are doing is, especially in the past two years,
03:37when the Prime Minister launched the Madani Economic Framework,
03:46that is specifically for, I use the word reconfigure,
03:50we want to reconfigure our economy again,
03:54so that we on the one hand raise the ceiling.
03:57What does it mean? It means we want to increase the value of the economy.
04:00The value of the economy now, in the past 20 years,
04:03it has not been able to create or create more high-paying jobs.
04:07That value has been limited there.
04:09We have a middle, that's why you say you have a middle income trap and so on.
04:12So when the Madani Economic Framework says it wants to raise the ceiling,
04:16it means it wants to increase the value of our economy
04:19so that our SMEs are able to increase productivity,
04:23be able to compete not only in the country,
04:25but also in this region if not internationally.
04:29He will be able to generate greater profits
04:32through the use of high-value technology products.
04:36He is not just making low-value products.
04:38So all this is to raise the value of the economy
04:41so that the economy is able to produce more high-value jobs.
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