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MEF: Education-industry mismatch leaves graduates ill-prepared for modern workplace
MEF: Education-industry mismatch leaves graduates ill-prepared for modern workplace

New Straits Times

time25-05-2025

  • Business
  • New Straits Times

MEF: Education-industry mismatch leaves graduates ill-prepared for modern workplace

KUALA LUMPUR: Malaysia's education system is churning out graduates who are ill-prepared for the demands of the modern workplace, the Malaysian Employers Federation (MEF) has warned. Its president, Datuk Syed Hussain Syed Husman, said many graduates emerged with academic credentials that do not sufficiently prepare them for the practical demands of today's job market. "MEF has expressed concern over the persistent issue of job mismatch in the labour market. The current education system produces graduates who are not aligned with industry requirements. "Many of them have academic backgrounds that are too theoretical and do not match the skills needed by employers, particularly in fast-evolving sectors such as technology, green energy and advanced manufacturing," he told the "New Straits Times". He said the system was not aligned with industry demands, leading to many young Malaysians entering the workforce without the capabilities needed to thrive. According to the recently released Gaji Cukup Makan economic report, 70 per cent of graduates are employed in semi- and low-skilled jobs, while only 30 per cent secure high-skilled roles. Syed Hussain said the country continued to produce an oversupply of graduates in fields, such as business studies and social sciences, while there was a persistent shortage in critical areas like engineering, data science, skilled trades and technical or vocational disciplines. "Underemployment — where graduates work in roles below their qualifications — reflects inefficiencies in the labour market. It also devalues higher education and contributes to low wage growth and job dissatisfaction," he said. To address this, MEF is urging institutions of higher learning to align academic programmes with real-world workplace skills, particularly in areas such as digital literacy, communication and problem-solving. He called for stronger partnerships between industry and academia to ensure courses better reflect current market demands. "We have long advocated for enhancing Technical and Vocational Education and Training (TVET). "It should be seen as a first-choice pathway, rather than a last resort. "Employers should also be incentivised to offer TVET-related internships and apprenticeships to connect training with employment directly," he said. Syed Hussain said MEF proposed expanding public-private training schemes, including micro-credentials and short-term certification programmes, to help unemployed or underemployed graduates upskill themselves and transition into high-demand roles. On the role of employers, Syed Hussain said the private sector must take proactive steps to bridge the skills gap and absorb more graduates into high-skilled roles. This includes offering structured on-the-job training and mentorship programmes and collaborating with government bodies, such as the Human Resource Development Corp, to design targeted upskilling initiatives. "Employers should co-develop curricula with universities and polytechnics, as well as offer meaningful internships and adopt skills-based recruitment practices that focus on competencies rather than just academic qualifications," he said. He added that MEF supported the use of artificial intelligence-powered job-matching platforms that align graduates' skills with high-skilled roles and provide clear career pathways within companies to help young employees understand their prospects for growth. Syed Hussain called on the government to expand incentives for companies that hire graduates in fields aligned with their training. "Financial incentives, such as tax breaks, subsidies and grants, will encourage businesses to hire graduates in their specialised fields. "This will reduce graduate underemployment while boosting innovation and national competitiveness," he said. He added that such measures would improve job satisfaction, wage growth and career development for youth, helping to build a stronger and more resilient workforce.

Tertiary Study Subsidy Boost In Priority Subjects
Tertiary Study Subsidy Boost In Priority Subjects

Scoop

time22-05-2025

  • Business
  • Scoop

Tertiary Study Subsidy Boost In Priority Subjects

Minister for Universities Hon Penny Simmonds Minister for Vocational Education The Government is backing the tertiary system with new investment in study that delivers the greatest value for students and for New Zealand, Minister for Universities Dr Shane Reti and Minister for Vocational Education Penny Simmonds announced today. 'Budget 2025 invests an extra $398 million in tertiary education over the next four years. We need to grow our domestic pipeline of skilled workers to support the growing economy,' Dr Reti says. Ms Simmonds says, 'When considering subsidies, we focused on workforce demand areas where study adds the greatest value – both for students planning their futures, and for the wider economy that relies on their skills. 'These subjects often lead to rewarding careers and contribute to productivity and growth in sectors like health, energy, infrastructure and digital technology,' she says. The Budget tertiary system investment includes: · $213 million to provide a 3 per cent increase in tuition and training subsidies in many subjects across all levels of tertiary study. The extra funding will be ongoing from 2026. · $64 million for an additional 1.75 per cent lift in tertiary education subsidies at degree level and above in high demand 'STEM' subjects (Science, Technology, Engineering and Maths), along with Initial Teacher Education and other priority health workforce areas. This is on top of the broader 3 per cent increase, meaning that, in total, the STEM and other higher-priority subjects will attract a 4.75 per cent tuition cost subsidy increase at degree level and above. $111 million to fund forecast enrolment in 2025 and 2026. This includes ongoing funding for another 175 Youth Guarantee students a year – this scheme provides fees-free tertiary tuition at Levels 1–3 to help young people move to higher-level study or work. Budget 2025 proposes an annual maximum fee rise of 6 per cent for 2026 to further help providers manage cost pressures and maintain quality delivery. 'The proposed maximum rate reflects that fees have lagged behind inflation in recent years, making it harder for providers to maintain course quality. I will consult on the proposed fee increase later in 2025 through a notice published in the New Zealand Gazette,' Mr Reti says. 'Together, the targeted funding rate increases, and the proposed fee increase will support tertiary education and training providers to sustain the quality of provision and further invest in priority areas,' the ministers say. Changes to funding for vocational education and training will provide some additional support during the transition away from Te Pūkenga to the redesigned system. The new Industry Skills Boards will receive ongoing funding of $30 million a year for industry-led standards-setting alongside Budget funding for a one-off $10 million in 2025/26 towards establishment costs. 'Provider-based delivery in priority areas, including engineering, trades and primary industries will receive a boost to funding rates. There will also be funding available for two years from 2026 for institutes of technology and polytechnics during their transition to greater independence,' Ms Simmonds says. 'In developing the Budget package, we have reprioritised funding to focus on core activities and to further support frontline tertiary education services. 'Taken together, these initiatives support a sustainable tertiary education and training sector that will lift student achievement and contribute to growing the New Zealand economy.'

Commotion at Penang state assembly over choice of language
Commotion at Penang state assembly over choice of language

The Star

time20-05-2025

  • Politics
  • The Star

Commotion at Penang state assembly over choice of language

GEORGE TOWN: A commotion has erupted in the morning session of the Penang State Assembly at Lebuh Light over the use of language by assemblymen. This comes after Penang Deputy Chief Minister II Jagdeep Singh Deo (PH–Datok Keramat), who was responding to a question, was interrupted by Azmi Alang (PN–Teluk Ayer Tawar), who requested that the speech be delivered in Malay. The remark triggered reactions across the assembly in the August Hall, prompting Jagdeep to clarify that he had, in fact, spoken in Malay and not solely in English. "Whatever I have spoken, I have started with Bahasa Malaysia. "What did Teluk Ayer Tawar get in SPM for Bahasa Malaysia? Dare to answer? After I have spoken in Bahasa Malaysia and if you do not understand English, I shall come and teach you," he replied, jokingly, on Tuesday (May 20). Speaker Datuk Seri Law Choo Kiang then stepped in to calm the situation and reminded members that it was preferable to use Malay for official proceedings. Before continuing his response, Jagdeep then apologised and acknowledged the suggestion, saying that he would proceed in Malay, but emphasised the global significance of English. "I have no problems with Bahasa Malaysia. "It is (English) the lingua franca of the world. "Sorry, sorry, sorry, I've been here for 18 years," he said, adding that his aim was to serve Penang to the best of his ability. Jagdeep was answering a question from Teh Lai Heng (PH–Komtar) regarding how multinational companies (MNCs) benefit not only through investments but also via the strengthening of the electrical and electronics (E&E) ecosystem, including technology transfer, talent development, and the alignment of Technical and Vocational Education and Training (TVET) and Science, Technology, Engineering, and Mathematics (STEM) programmes with the needs of high-skill industries.

Over 100,000 applications for TVET institutions received since April, says Ahmad Zahid
Over 100,000 applications for TVET institutions received since April, says Ahmad Zahid

The Star

time18-05-2025

  • Business
  • The Star

Over 100,000 applications for TVET institutions received since April, says Ahmad Zahid

KUALA LUMPUR: A total of 106,000 applications have been received from youths nationwide to join Technical and Vocational Education and Training (TVET) courses since the intake process was centralised under the TVET Intake Unit (UPTVET) beginning early last month. Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said the number was expected to rise to at least 150,000 applications by the end of June, reflecting the effectiveness of the new approach. Ahmad Zahid said not all youths excelled academically, so the TVET pathway should be given due attention as a practical alternative that promised a bright future. "If they manage to reach the Malaysian Skills Certificate (SKM) Level 3 (SKM-3), it is already equivalent to the Sijil Pelajaran Malaysia (SPM) and can secure them a minimum salary of RM2,500. In fact, SKM-4 and SKM-5 are equivalent to diploma-level qualifications," he said during the closing ceremony of the Federal Territory-level 2025 National Youth Day celebration here on Sunday (May 18), which was also attended by Deputy Youth and Sports Minister Adam Adli Abdul Halim. Ahmad Zahid, who is also the National TVET Council chairman said that six universities were ready to offer TVET courses, namely Universiti Kuala Lumpur (UniKL), Universiti Tun Hussein Onn Malaysia (UTHM), Universiti Teknikal Malaysia Melaka (UTeM), Universiti Selangor (Unisel), Universiti Malaysia Perlis, and Universiti Malaysia Pahang Al-Sultan Abdullah (UMPSA). Meanwhile, the Rural and Regional Development Minister said that besides youth enrolment in these institutions, the government was also focusing on assisting 1.16 million youths in the e-hailing, p-hailing and creative industries. He said many of them possessed talent but lacked formal qualifications, and if they remained in these sectors without upskilling, their productivity might decline by the age of 40. "For their future, the government is offering reskilling and upskilling programmes in TVET fields so they can enhance their skills and income. A daily allowance will also be provided to ease the financial impact during the training period," he said. In addition, Ahmad Zahid voiced concern over the rate of fatal crashes involving youths, noting that 90% of the 6,000 deaths recorded annually involved this group, which must be urgently addressed. "If this continues, we will lose a productive labour force among the youth. As chairman of the Cabinet Committee on Road Safety, I want the Malaysian Youth Council (MBM) and respective state youth councils (MBNs) to organise special motorcycling courses for young riders, including on safety and maintenance," he said. He also urged the creation of other special programmes for youths not affiliated with any associations, to ensure they were not left out of development efforts. Ahmad Zahid also agreed that several special initiatives be implemented for youths in the Federal Territory, including free e-sports courses at UniKL, TVET programmes in the electric vehicle (EV) automotive field, and green technology-based programmes for urban youth. - Bernama

Skills training overhaul risks the same old pitfalls
Skills training overhaul risks the same old pitfalls

Newsroom

time16-05-2025

  • Business
  • Newsroom

Skills training overhaul risks the same old pitfalls

Opinion: The coalition Government appears determined to dismantle many policies introduced by the previous Labour government – particularly those impacting workers. The latest example is the Education and Training (Vocational Education and Training System) Amendment Bill introduced earlier this week. To understand its potential impact, and its pitfalls, it's instructive to look back at former UK Prime Minister Tony Blair's New Labour reforms two decades ago, which ultimately failed to deliver lasting benefits for workers or the economy. Blair's New Labour and the New Deal In 1998, Tony Blair's government launched the New Deal initiatives in the UK, promising to revitalise skills and foster economic growth through a more responsive, industry-led approach to vocational training. The policies emphasised expanding micro-credentials, creating flexible pathways, and strengthening employer partnerships. But, despite the lofty rhetoric, they ultimately failed to deliver genuine benefits for workers or the broader economy. The focus on expanding qualifications often led to credential inflation – the devaluation of educational credentials over time – where micro-credentials proliferated without clear links to improved wages or job quality. Labour market demand was not adequately addressed, and many workers found themselves with qualifications that did not translate into better employment outcomes. Key changes in the New Zealand bill The Government's bill proposes a significant overhaul of the existing system within the next two years. Key elements include: shifting away from the centralised Te Pūkenga model toward a more regional, industry-led structure establishing a Federation of Polytechnics, with 'anchor polytechnics' for shared services creating industry skills boards, which will set skill standards, oversee assessments, advise on funding, and initially manage work-based training before shifting this to polytechnics and private providers potentially introducing industry levies to fund workforce initiatives Tertiary Education Commission and New Zealand Qualifications Authority oversight, with ministerial intervention, if needed. The overarching goal is to make vocational education more responsive to local and industry needs, fostering regional decision making and greater industry involvement. On the surface, these reforms aim to address longstanding criticisms of a centralised, one-size-fits-all approach to vocational education. By decentralising control and involving regional and industry voices, the Government hopes to create a more responsive and locally relevant system. Yet, history suggests that without tackling deeper structural issues – worker power, funding, and real demand – these reforms risk superficiality. Without addressing the fundamental issues of labour market demand and worker empowerment, the reforms could be little more than a reshuffling of titles and structures. There are three main problems with the Government's approach. Over-reliance on qualifications as a proxy for skills and power The UK's experience under Blair revealed that expanding qualifications without addressing underlying labour market issues can lead to credential inflation – more micro-credentials that do little to improve actual skills or economic power. Expanding micro-credentials and qualifications failed to translate into improved wages or job quality. New Zealand's focus on micro-credentials and industry standards may also lead to credential inflation if not carefully managed. It also risks devaluing genuine skills if these credentials do not align with actual labour market needs. Qualifications should be meaningful indicators of capability, not just boxes to tick. 2. Neglect of labour market demand and structural conditions New Labour's reforms emphasised basic skills but failed to tackle sector-specific shortages or improve employment quality. New Zealand's reforms aim to be more locally responsive but must ensure they are rooted in real labour market demand. Otherwise, there's a danger of creating a qualifications system full of micro-credentials that don't translate into better jobs or wages. 3. Failure to acknowledge power dynamics and role of collective action The Blair government's policies largely overlooked the importance of workplace power and collective bargaining. Unless reforms here strengthen workers' voices and collective bargaining beyond industry-led boards, gains in skills may not lead to improved wages or conditions. There is also the elephant in the room: funding shortfalls. Chronic underfunding is a persistent obstacle in upgrading vocational training. Without adequate investment – covering modern facilities, fair pay for trainers and educators, and accessible programmes – these reforms are unlikely to succeed. Underfunding undermines quality and relevance, resulting in a system that's more about appearances than genuine transformation. Lessons we need to learn The UK's experience demonstrates that simply expanding micro-credentials and decentralising governance is insufficient. Without prioritising meaningful employment outcomes, empowering workers through collective voice, and, critically, sustained investment, such reforms risk worsening credential inflation and delivering only superficial progress. To truly reform vocational education, policymakers must invest strategically, align training with labour market needs, and strengthen worker representation. However, even well-designed policies will fail without adequate funding, leaving a system that looks good on paper but delivers little in practice. Lasting change depends on structural reforms, long-term investment, and genuine worker empowerment to create a vocational education system that benefits both workers and the economy.

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