In Dec 2024, Malaysia’s unemployment rate was 3.1%, the lowest level in almost a decade. However, underneath the impressive headline figure is a high rate of underemployment among graduates due to a shortage of high-skilled jobs. According to the Department of Statistics of Malaysia, about 1.95 mln tertiary-educated workers in Malaysia are underemployed and working in semi-skilled or low-skilled jobs as of the third quarter of 2024. This means 36.8% of the total tertiary-educated workforce is doing jobs that do not require such a qualification, marking a leap from 8.6% in 2010.
There are a grossly insufficient number of highly skilled jobs in the country. Between 2018 and 2023, the number of high-skilled jobs offered was less than 50,000, but there were 350,000 graduates fighting for those jobs. Diploma holders faced similar challenges. The worsening of the skill mismatch problem has contributed to a worsening in Malaysia’s brain drain problem as talents venture overseas in search of higher-paying jobs.
Malaysia needs to urgently progress the National Semiconductor Strategy (NSS) announced last year. A successful implementation of the NSS will create many high-skilled, high-paying jobs, which in turn will lead to a virtuous cycle.
There are a grossly insufficient number of highly skilled jobs in the country. Between 2018 and 2023, the number of high-skilled jobs offered was less than 50,000, but there were 350,000 graduates fighting for those jobs. Diploma holders faced similar challenges. The worsening of the skill mismatch problem has contributed to a worsening in Malaysia’s brain drain problem as talents venture overseas in search of higher-paying jobs.
Malaysia needs to urgently progress the National Semiconductor Strategy (NSS) announced last year. A successful implementation of the NSS will create many high-skilled, high-paying jobs, which in turn will lead to a virtuous cycle.
