Plenty of graduates, not enough jobs: Malaysia’s real skills crisis

 

MALAYSIA is stuck in a strange and worrying place right now. Every year, thousands of fresh graduates walk across the stage, degree in hand, ready to take on the world.

At the same time, employers keep saying the same thing: “We can’t find the right people.” It doesn’t add up, does it?

Too often, people point fingers at students, saying they are “choosing the wrong skills” or studying the wrong things. But that’s not just unfair—it’s lazy. The real problem runs much deeper, and it’s not the students who created it.

The real issue? A mismatch that’s been years in the making.

To be clear, graduates aren’t “unskilled”. They are learning things that don’t match what the job market actually needs. Many young Malaysians end up in popular courses like business administration, management, or general studies—fields that feel safe and familiar.

But these areas are already saturated with graduates. The result? Underemployment, frustration, and a whole lot of wasted potential.

Blaming students for choosing these courses misses the point entirely. The better question is: why are they making these choices in the first place?

The system is letting them down.

For starters, universities are often stuck in the past. Curricula are outdated, overly theoretical, and slow to change. There is a serious disconnect between what is taught in lecture halls and what is needed in the real world. And the link between academia and industry? Weak at best.

Then there is TVET—technical and vocational education and training. We desperately need skilled technicians, engineers, and trade specialists. But let’s be honest: TVET still carries a stigma.

Society continues to equate success with a university degree rather than hands-on skills. The result is a lopsided system—critical sectors crying out for talent while degree holders compete for a shrinking pool of office jobs.

Even the job market is not helping.

A significant portion of jobs in Malaysia remains low-skilled. These roles do not allow graduates to fully utilise what they have learned. As a result, many end up underemployed and working in positions that do not match their training or potential. Over time, this erodes motivation, creativity, and the country’s ability to compete globally.

Then there are the skills employers consistently demand: critical thinking, problem-solving, adaptability, and communication. Many graduates struggle in these areas, largely because they have been trained to memorise and repeat rather than to question and create.

English proficiency is another persistent barrier, especially in an increasingly globalised economy.

So what needs to change? A lot—and it needs to happen now.

First, education must be reformed. Curricula should be developed with meaningful industry input, not in isolation. Internships, apprenticeships, and real-world projects should be core components of learning, not optional add-ons.

Second, we need to stop looking down on TVET. It must be repositioned as a prestigious and viable pathway. This requires sustained investment and a national effort to reshape public perception. Countries that succeed in this area recognise that all forms of skilled work have value.

Third, the government must step up—not as a bystander, but as a strategic planner. It should actively forecast future skills needs and align education policies accordingly.

Incentives should be provided to companies that invest in training and upskilling their workforce, rather than simply lamenting the lack of “job-ready” graduates.

Fourth, career guidance in schools must be strengthened. Students should not be told simply to “follow their passion” without context. They need access to real data about the job market to make informed, realistic choices.

Finally, we must rethink what success looks like. A degree is not the sole measure of a person’s worth. Competence, adaptability, and a willingness to learn continuously matter just as much, if not more.

Malaysia has talent. Plenty of it. What we lack is alignment.

Alignment between education and industry. Between what young people aspire to and what opportunities actually exist. Between policy and reality.

Until we fix that, we will continue blaming students for choosing the “wrong skills” while ignoring the deeper, systemic failure.

We have been comfortable for too long. It is time for action—not to blame our youth, but to build a system that finally works for them. 

KT Maran is a Focus Malaysia viewer.

The views expressed are solely of the author and do not necessarily reflect those of 

- Focus Malaysia.