Will Malaysia's Future Workforce Be (Even) Less Employable?

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As of now, there are 161,000 unemployed Malaysian graduates, making up 31.4% of the unemployed in Malaysia. A staggering increase since 2013, when only 52,282 graduates did not have a job. The slow economy of course contributes to high unemployment rates, but employers and pundits also point to the apparent ‘unemployability’ of our local talent: current fresh graduates do not have good language and communication skills, leadership ability, or even realistic career expectations.

Economic performance are expected to fluctuate, but if nothing is done to improve the quality of Malaysian candidates, it's unlikely that Malaysia will develop - or even survive - in the increasingly competitive and globalised world.

As we approach the final quarter of 2016 and amidst local and worldwide discord, what can we expect from our future talent? Current developments points towards disaster:

English Literacy Among Malaysians Set To Decrease

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According to a JobStreet survey earlier this year, 64% of employers cite a lack of good English as one of the major reasons our fresh graduates are not employable. 60% also point out the lack of good communication skill. Clearly with English remaining the lingua franca of business, science and technology, Malaysians needs to be at least competent in the language to remain in the playing field.

However, beginning 2017, schools will teach Science and Mathematics subjects in Bahasa Malaysia (Malay). In 2003, the Ministry of Education introduced the Teaching and Learning of Science and Mathematics in English (Pengajaran dan Pembelajaran Sains dan Matematik Dalam Bahasa Inggeris; PPSMI) for primary and secondary schools. Science and Maths subjects were previously taught in Malay. The programme was reversed in 2012 after much contention.

Since then, primary school students continued to be taught Science and Mathematics subjects in English, but will learn these subjects in Malay when they progress to secondary school. The final batch of English-taught students - now in Standard 6 - will enter Form 1 next year. Schools enrolled in the Dual Language Programme (DLP) can still teach the subjects in both languages, but with only 300 schools allowed into the programme, concerned parents are reportedly flooding secondary schools with calls to confirm if they are under the DLP before even enrolling their children.

While it’s laudable to uphold our national language, many point out the imprudence of not preparing our future talent for the highly globalised and English-based sectors. Languages are after all best learned when young, and these fields are taught in English at the tertiary level. Developments and innovations in these sectors are also predominantly reported in English, out of English-speaking nations. Students will also have less opportunity to practice and learn the language in school.

Currently, Malaysia ranks as the second most English-literate nation in Asia (falling behind Singapore). But with its dwindling use in our education system, laziness, and cultural attitudes of not learning the ‘Bahasa Pendatang’ (‘Colonists’ Language’), we might lose our competitive edge and our competent, employable workforce.

Fresh Graduates Will Demand More Money

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Another major concern of employers is that fresh graduates have unrealistic expectations of salary and benefits; graduates reportedly demand starting salaries ranging from RM 3,500 to RM 6,500. In 2013, JobStreet revealed that the highest salary for fresh graduates - in the pharmacy sector - only paid RM 3,640.

Within the legal industry, current salary data from OfficeParrots.com users report that salaries for fresh graduates (as Chambering Pupils) range from as low as RM 1,000 to RM 3,800 within the Klang Valley. Newly qualified Associates stand to earn from RM 3,000 to RM 6,000. The average salary for a fresh graduate in Malaysia, however, is about RM 1,800.

Employers are generally unprepared to pay workers significantly above the average industry rate, much less extravagantly pay (or even hire!) local graduates whom they think are of poor quality. However, the high cost of living - especially within the Greater KL region where most professional jobs are found - forces many to demand - or even require - a higher salary.

Recently, Malay Mail Online reports that many ‘Middle Income’ families who despite having a household income above the national average of RM 6,141 still struggle to cover the bills and save for the future. Granted, fresh graduates may not have as many financial obligations as an older family, but still feel the pinch from housing, transportation, and food costs.

Our nation does acknowledge and make efforts to overcome these issues, although many question their effectiveness: steps to ease home-ownership among younger Malaysians by allowing developers to offer property loans are already criticised as being ineffective, as the main reason Malaysian youths cannot own property (in itself a form of investment for the future) is the lack of affordable houses. Transport continues to be a drain with recent parking fee hikes and higher public transport tariffs amidst reportedly inefficient services.

Cash-strapped but not 'up-to-standard', our young workforce remain in a bind.

Fresh Graduates Continue To Lack Transferable Skills

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Another ongoing problem is that our fresh graduates are ‘good on paper’ but poor in actual practical skills. A highly exam- and paper-based education system have ingrained the belief - both in the youth and their authority figures - that good academic grades guarantees employment.

However, employers and career experts continue to stress that transferable skills such as communication, decision making, critical thinking, and organisational skills are the most important aspect of a candidate’s employability. Graduates can be intelligent in a highly structured and artificial situation such as a test, but will not be effective as a worker in a world outside academia if they do not develop such skills.

Distressingly, while local schools are shifting to a more skill-focused education, many parents and even academic institutes are known to actively discourage students from participating in non-academic activities in favour of maintaining grades. Whether an attempt to produce quality graduates based on an antiquated and misguided understanding of the job market, or an unscrupulous move to improve university rankings based on academic standing, Malaysian graduates lose out on developing any relevant 'employability' skills for their future.

Lower Employability Or Evolving Market?

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In the same JobStreet survey, 60% of employers think that fresh graduates are too ‘choosy’ about the employer and job they take. Likewise, employers - largely due to the poor economy - are more conservative and selective of who they hire.

Career attitudes and expectations from both sides have undoubtedly changed over the years. Younger Malaysians wish to be given worthwhile work and responsibilities, yet many seem unable or even unwilling to meet employers' standards as a worker who can be entrusted to do high value work. Work-life balance has become a major component of the career decisions young Malaysians make, but employers still expect their new hires to commit an inordinate amount of energy and time to the job. On the other hand, fresh graduates need a higher salary, which employers are unwilling to pay.

A compromise does not seem to be in sight.

“What do you call a medical student who graduated at the bottom of their class?”

A doctor.

The tongue-in-cheek riddle can either mean you’ve accomplished something even if you’re not the best, or in this situation, Malaysians will still get a job eventually even if they do not meet employers’ standards.

Perhaps our fresh graduates rely on this old adage and therefore put in minimal effort to develop their career. Alternatively, young Malaysians may also see no incentive to either improve or stay in Malaysia because the systems in place - their education, standard of living, social attitudes, and infrastructure - seem to hinder their development and subsequent employability.

Will things improve? Perhaps only time will tell.

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Information Source: Eduadvisor, Education First English Proficiency Index 2015, JobStreet Malaysia, The Malaysian Mail Online, The Star Newspaper

Image Source: funnymalaysia.net, rage.com.my, says.com.my, talentcorp.com.my