According to the Graduate Tracking Study Report published by the Ministry of Higher Education (MOHE) in 2023, Malaysia witnessed a substantial number of graduates in fields like Engineering, Manufacturing, and Construction, along with the Services sector.
However, despite this pool of talent, there were significant vacancies in high-skilled positions, as highlighted by quarterly statistics released by the Malaysian Bureau of Labour Statistics (MBLS) and the Institute of Labour Market Information and Analysis (ILMIA).
“From the aspect of graduate employment in Malaysia, based on the Graduate Tracking Study Report published by the Ministry of Higher Education (MOHE) in 2023, the total number of graduates in the fields of Engineering, Manufacturing, and Construction was 89,379 individuals (26 percent), while the Services sector accounted for 22,345 individuals (6.5 percent).
From the perspective of demand from industries, based on quarterly statistics released by the Malaysian Bureau of Labor Statistics (MBLS), Department of Statistics Malaysia (DOSM), there were 49,500 vacancies for high-skilled positions in the manufacturing sector in the second quarter of 2023.
Furthermore, data reported for the third quarter of 2023 by the Institute of Labor Market Information and Analysis (ILMIA) also indicated that there were 22,248 vacancies for various positions in the professional, scientific, and technical industries, involving 5,734 local companies,” Deputy Minister of Investment, Trade, and Industry, Liew Chin Tong said in Dewan Negara today.”
In a recent session at Dewan Negara, Datuk Haji Mustafa Musa, alongside voiced concerns regarding the projected demand for technical engineering, science, and technology workforce by new investors in 2024.
This concern arises from the government’s reliance on skilled foreign labor, which has led to a deficit of job opportunities for local graduates.
Interestingly, while the number of graduates produced in Malaysia seems to meet industry demand on paper, Chin Tong emphasised a concerning trend.
Many local graduates opt to work abroad or engage in the gig economy due to more attractive salary packages and working conditions.
This trend is corroborated by the findings of the “Shifting Tides” report by the Khazanah Research Institute, which highlights a growing number of overqualified graduates facing low salary issues.
“Referring to the study report titled “Shifting Tides: Charting Career Progression of Malaysia’s Skilled Talents” by the Khazanah Research Institute published recently, it was found that the number of newly qualified graduates who are overqualified is increasing and facing low salary issues, with 65.6 percent of graduates in 2021 receiving starting salaries of less than RM2,000.” Chin Tong added.
Additonally, the Malaysia Diaspora Study revealed that a significant percentage of Malaysians working overseas receive higher starting salaries compared to their counterparts in Malaysia. In light of these challenges, Chin Tong stressed the need for reforms in the domestic labour market to ensure fair salaries for Malaysian workers and maintain the resilience of industries in the country.
As part of the proposed solutions, Chin Tong said, “MITI proposes that foreign graduates from local IPTs in specific fields be allowed to work in Malaysia for two (2) to three (3) years after completing their studies, which is temporary and a short-term solution.
Training aspects are crucial to prepare local talent to meet industry needs in the future. In this regard, talent development has also been identified as one of the drivers of change in NIMP 2030.
The implementation of the Progressive Wage Policy by KESUMA in the future will be aligned and will help realise the implementation of NIMP 2030.
This policy will help reduce the issue of losing skilled local talent abroad, besides increasing the median income of Malaysians as planned through the Malaysia MADANI concept, especially in improving the quality of life of all Malaysians.”
Looking ahead, MITI pledges to collaborate with relevant ministries and agencies to bridge the gap between talent supply and demand, ensuring a conducive working environment for local talent and bolstering Malaysia’s economic competitiveness on the global stage.
