Malaysia faces youth unemployment crisis

Education System problems

The root cause of graduate unemployment is the mismatch and surplus of graduates to what industry really needs. What is being taught in universities needs urgent review. In addition, there are just too many university places available for the needs of the local workforce.

Technical and Vocational Educational Training (TVET) needs urgent review. There should be more focus in providing practical skills and trades through certificates, rather than diplomas and degrees. These programs have to outreach to those who need them in the rural heartlands, rather than being centralised in large city and town campuses.

Entrepreneurship has been seen as the 'magic bullet' to ease youth unemployment. This is a misnomer. Entrepreneurship is about developing new startups based on a source of innovation, which is very risky. Fewer than one in 10 startup more than five years. The emphasis needs to be placed on teaching youth basic trades to provide a small income, and teach those a little more ambitious the concepts of small business, rather than entrepreneurship.

In the Malay heartlands, youth may be much more attracted to micro-businesses that fit into their lifestyle than a business or job they must fit into. Rather than educational institutions focusing on equipping youth with industry 4.0 skills, should focus on turning kampungs into sustainable socio-eco-systems that assists youth in enriching their lives.

Under such a premise, the whole youth training pedagogy needs to be completely reframed to make an impact on youth unemployment in the rural heartlands.

The Achilles Heel

World Bank comparative youth unemployment puts Malaysia as the second highest to Indonesia in the region. With the hidden unemployment segments added in, Malaysian youth unemployment is probably more like 15-18 percent.

A whole generation of economically and socially disenfranchised youth is growing up. This will have its consequences. This is the legacy of successive governments which have blindly accepted foreign investment projects that employ foreign rather than local workers. This is the legacy of central planning in public education. Foreign workers have kept wages down and created a social stigma for young locals taking up unskilled work. The enthusiasm of government to build so many universities, has done a great disservice to vocational education, which is considered the last educational choice by Malaysians.

Education needs a massive rethink. It needs to be radically skewed towards vocational training. Not the large polytechnics, but small community centres that brings informal skills-based training to those who need it.

The Pakatan Harapan Government has been found wanting in reform. Now we are finding that it's also lacking in fundamental economic management.

The major issue for the government today is youth unemployment. This is the constituency that brought Pakatan Harapan into government and this will be the constituency that also boots them out of government next election. The disappearance and silence of Pakatan Harapan youth leaders since the election is symbolic of the problem. If youth unemployment stays as it is, then prepare for a possible change of government next election.