Investment, Trade, and Industry (MITI) Minister Datuk Seri Tengku Zafrul Abdul Aziz said investors cannot wait much longer for Malaysia to produce more skilled workers as they are needed now.
He was responding to objections to permit foreign graduates to work temporarily in Malaysia for a short time.
“For example, the electrical and electronics industry needs 50,000 engineers. Our institutes of higher learning so far only produce 5,000 graduates a year. So, meeting the demand of the industry will take time,” he said in a video posted on X yesterday.
He added that by allowing foreign graduates of local institutes of higher education to work temporarily in the country, the local industry will get the necessary supply of skilled manpower.
“Local IHE (can) be empowered in the international arena, and our local graduates will continue to be given opportunities when they are ready,” he added.
Tengku Zafrul said his ministry as well as the ministries of Higher Education, Human Resources, Science, Technology, and Innovation are working to increase the number of students and skilled workers in high-tech fields.
In response to the proposal to allow foreign graduates to temporarily work in Malaysia, the Small and Medium Enterprise Association (Samenta) lauds the move addressing talent shortage issues, particularly in fields like engineering and technical areas.
Samenta further expressed that Penang alone is short of an estimated 50,000 engineers and technicians – a situation that has limited growth in the semiconductor, manufacturing, and logistics industries.
The problem is especially severe among SMEs, who have to compete with multinationals (MNCs) for these talents.
Samenta national president, Datuk William Ng, asserted that allowing graduating foreign students to work not only will ease the talent crunch but also allow Malaysia to retain talent that has been trained here.
He also addressed the popular misconception that SMEs are not paying enough for local workers is not true.
“Some SMEs pay between RM 4,000 and RM 5,000 for fresh engineering graduates. However, these graduates either prefer to work for MNCs or are demanding preferred work conditions that many SMEs cannot deliver,” he said.
Ng said if the cabinet approves this long-standing call by the industry to allow post-graduation employment for foreign students in economically critical sectors and job specializations, Malaysia will join the ranks of advanced economies such as Australia, Canada, Ireland, New Zealand, Singapore, South Korea, and the United Kingdom in allowing graduating foreign students to work and contribute to their economies.
“These post-graduation employment visas are typically short-termed, non-renewable and are specific to identified industries and jobs, so the fear that allowing them will distort the job market or displace local talents is unfounded,” said Ng.”
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