Malaysia, like many other countries, is grappling with the issue of skill mismatch and brain drain, which has led to a range of socioeconomic challenges. This article highlights the plight of highly educated individuals who struggle to find suitable employment, explores the impact of salary wage and inflation on the economy, discusses the brain drain phenomenon in neighboring Singapore, and examines Malaysia’s efforts to address these issues.
First-Class Honour Graduates: From Academic Excellence to Dishwashing:
Credit: WeirdKaya
Despite holding a first-class Bachelor’s Degree in Finance with a prestigious Vice-Chancellor’s award, 25-year-old Zuraini Zulkornian has been employed as a restaurant assistant at her brother’s establishment for approximately a year, as reported by Harian Metro. Zuraini’s struggle to secure a job in her field highlights the challenges she faces in finding employment that aligns with her educational qualifications and aspirations.
Despite her academic achievements, this individual is forced to accept menial jobs, such as dishwashing, due to the lack of opportunities that match their qualifications. This alarming trend underscores the urgent need to bridge the gap between education and industry demands.
Salary Wage and Inflation:
The widening gap between wage growth and living expenses in Malaysia is unsettling, as it creates a daunting financial landscape for a significant portion of the population. According to statistics, since 2018, approximately half of Malaysians have struggled to meet the living wage benchmark of RM2,700 set by Bank Negara Malaysia (BNM) in Kuala Lumpur. And the new graduate salary in Malaysia has an average base salary of RM 2,896, imagine how much saving at the end of the month. This concerning statistic underscores the urgent nature of the problem, highlighting the stagnation of wages and the increasing burden of living costs, especially when it comes to fulfilling basic needs such as food.
Brain Drain to other developed countries
Credit: New Mandala
According to the Human Resources Minister, Malaysia currently has 1.8 million citizens working overseas, with a significant portion of 1.13 million individuals being employed in neighboring Singapore. This brain drain phenomenon has resulted in Malaysia’s brain drain rate standing at 5.5% of the population, which is considerably higher than the global average of 3.3%. Data from the Department of Statistics Malaysia reveals that Singapore is the most preferred destination, with 54% of Malaysians employed there, followed by Australia (15%), the UK (5%), and the US (10%).
Training to upskill
Credit: Ministry of Economy
The Malaysian government has introduced the ‘AI Untuk Rakyat’ initiative, aiming to empower citizens by providing them with the opportunity to enhance their knowledge of artificial intelligence (AI) technology. In support of a digitally-driven economy, Rafizi Ramli, the Minister of Economy, highlights the significance of having a fundamental understanding of AI, as it opens up numerous opportunities. The ‘AI Untuk Rakyat’ program is accessible to all Malaysians free of charge and is offered in Bahasa Malaysia, English, Mandarin, and Tamil. It comprises two modules: AI Aware and AI Appreciate. Participants can learn at their own pace, with the entire course expected to take around four hours to complete. The program is accessible through the www.ai.gov.my portal for those interested in participating.
Numerous employers have expressed concerns about the declining proficiency of graduates in English communication. They have observed a noticeable decline in the ability of graduates to converse effectively in English. To address this issue, several affordable platforms, such as eLatih, offer business English classes. These platforms provide accessible opportunities for individuals to improve their English language skills in a business context.
MDEC’s eUsahawan program caters to the entrepreneurial aspirations of graduates, providing comprehensive digital skills training for entrepreneurs and petty traders in Malaysia. The program offers a range of online and physical training sessions, covering fundamental aspects of digital entrepreneurship such as business management, entrepreneurship, digitalization, and digital marketing. Additionally, the newly introduced Modular eUsahawan training focuses on specific areas like management, marketing, and digital technology utilization, including topics such as Business Model Strategy, Creative Content Development, Social Media Platform Usage, and e-Commerce Platform Management. With these initiatives, MDEC aims to equip graduates with the necessary skills and knowledge to succeed in the digital business landscape and foster a thriving entrepreneurial ecosystem.
Addressing the skill mismatch in Malaysia is vital for promoting economic growth, reducing unemployment, and retaining local talent. The challenges faced by highly educated individuals seeking suitable employment, coupled with salary wage stagnation and brain drain to Singapore, necessitate immediate action. By aligning education with industry demands, offering competitive wages, and creating an environment that encourages innovation and entrepreneurship, Malaysia can effectively address the skill mismatch and pave the way for a prosperous future.
Discussion about this post