The School-to-Work Transition of Young Malaysians Date: 12 December 2018 Venue: Mercu UEM, KL Sentral
key findings SWTS Khazanah Research Institute
Youth education and training for employability Khazanah Research Institute
+THE SCHOOL-TO-WORK TRANSITION OF YOUNG MALAYSIANS 1. Qualification and skill mismatches Education not equipping youth with skills employers are looking for Skills ranked most important by employers 60 % 50 50 40 30 31 27 20 10 0 Soft skills Work experience Hard skills Source: KRI (2018) ▪ Malaysian education and training institutions emphasize academic and professional qualifications but employers are looking for soft skills and work experience ▪ Lack of emphasis on lifelong learning to adapt to the rapidly changing nature and world of work 4
+THE SCHOOL TO WORK TRANSITION OF YOUNG MALAYSIANS 1. Policy implications and options To address skills mismatches • Promote teaching of soft skills , including ‘learning to 1 learn’ skills • Emphasize work-based learning to better match the 2 supply of and demand for skills • Incentivise employers to provide work-based 3 learning , with particular attention to support for SMEs Widely publicise and support use of the Critical 4 Occupations List to identify & more effectively address skills shortages • Adopt a forward-looking approach to anticipate and 5 match skill needs 5
+THE SCHOOL-TO-WORK TRANSITION OF YOUNG MALAYSIANS 2. TVET not a popular education pathway TVET emphasized in Education Blueprints but low participation Youth in upper secondary education Youth in tertiary education Public Universities 38 Private Universities 29 7% National secondary, 12% Colleges fully residential and 13 form 6 Polytechnics 9 Technical and 13% vocational schools University Colleges 6 Matriculations Colleges 2 National religious 68% secondary schools Community Colleges 2 Overseas Colleges Branches 2 International/private schools Institutes for Teachers… 1 0 20 40 % Source: KRI (2018) Source: KRI (2018) ▪ Only 13% of all upper secondary students are pursuing TVET courses ; while at higher education level less than 9% are in polytechnics ▪ Yet those already in the labour market identify TVET as the most useful qualification for getting a ‘good job’ ▪ Wage differential between TVET holders and other types of graduates 6
+THE SCHOOL TO WORK TRANSITION OF YOUNG MALAYSIANS 2. Policy implications and options To improve TVET Overhaul the current TVET system to: ensure strategic coordination among large number of o training providers, prioritize demand-driven approach with close industry o 1 involvement, establish reliable competency standards and o qualifications framework, and raise the status of TVET qualifications o Promote competency-based education and training 2 using short modular courses directly linked to specific skill needs Evaluate the applicability of the German dual 3 training system to the Malaysian context 7
+THE SCHOOL-TO-WORK TRANSITION OF YOUNG MALAYSIANS 3. STEM education is still lacking Take-up rate of science subjects and STEM courses unsatisfactory STEM subjects enrolled by upper Main field of study of tertiary students secondary students Social sciences, business… 42 % 100 Enrolled 3 Health and welfare 90 8 30 37 37 80 Arts and humanities 7 44 70 Education 4 60 Services 4 50 97 Agriculture and veterinary 4 40 Not 70 Engineering,… enrolled 16 63 63 30 56 Science, mathematics and… 9 20 10 Information technology 4 0 Biotechnology 2 Biology Chemistry Physics Additional Computer mathematics science 0 10 20 30 40 50 % Source: KRI (2018) Source: KRI (2018) ▪ Only about a third of all students at upper secondary and tertiary levels are enrolled for STEM related subjects ▪ The government’s 60:40% target ratio for science to arts students has yet to be achieved 8
+THE SCHOOL TO WORK TRANSITION OF YOUNG MALAYSIANS 3. Policy implications and options To promote STEM Make STEM more attractive and widely available 1 from a young age, including through setting up ‘maker spaces’ 2 Adequately equip teachers and students for STEM Integrate STEM subjects with the Arts (STEAM) to 3 raise students’ interest in and understanding of science and its application 9
+THE SCHOOL-TO-WORK TRANSITION OF YOUNG MALAYSIANS 4. Youth lack entrepreneurship skills Entrepreneurship not viewed as a pathway from school-to-work Preferred types of work Skills considered most useful for getting a good job % 40 Starting a business Starting a business 30 % Entrepreneurship 35 25 30 20 25 15 20 10 15 5 10 0 5 Upper-secondary Tertiary Job Young youth education youth seekers workers 0 Upper-secondary Tertiary Job Young youth education youth seekers workers Communication skills Creative and analytical thinking Work for the government/public sector Work for a large international company Being honest and hardworking Organisational adaptability Start your own business Work for a large private company English language proficiency Ability to get along with people Do not care, any job offered Not sure Knowledge of the business world Teamwork skills Entrepreneurship Other Other Source: KRI (2018) Source: KRI (2018) ▪ Youth are not aware of importance of entrepreneurship skills , whether to start and sustain their own business or to s ucceed in the gig economy ▪ Starting a business is not a popular option , except for those already working 10
+THE SCHOOL TO WORK TRANSITION OF YOUNG MALAYSIANS 4. Policy implications and options To encourage entrepreneurial behaviour Provide courses that develop entrepreneurial qualities, including business acumen, initiative, 1 innovation, creativity and risk-taking among youth Promote sustainable businesses - combine training with access to funding, information and markets, 2 mentoring support, business development services and conducive regulations Take into account the specific constraints that 3 youth face in establishing sustainable businesses Ensure that services offered by SME Corp. and other 4 government agencies pro-actively reach young people 11
Their job search process Khazanah Research Institute
+THE SCHOOL-TO-WORK TRANSITION OF YOUNG MALAYSIANS 5. Mismatch of job search and recruitment methods Mismatch between how young people look for jobs and how employers recruit workers Most used job search and recruitment methods Job seekers Young workers Employers Public Apply directly to 1 Online employment employers advertisements service Attend job fairs, Assistance of Relatives/friends of 2 relatives/friends open interviews employees Employability Answer Relatives/friends of 3 training course advertisements employers Public employment Answer 4 Print advertisements advertisements service Directly Agent/labour Apply directly to 5 approached by contractors employers employer Employability Educational Assistance of 6 training institution relatives/friends programme Source: KRI (2018) ▪ Youth register at public employment services and attend job fairs or open interviews ▪ But employers rely on online advertisements , followed by informal networks of relatives and friends ▪ The mismatch of job search and recruitment methods affects the smooth functioning of the labour market 13
+THE SCHOOL TO WORK TRANSITION OF YOUNG MALAYSIANS 5. Policy implications and options To address the mismatch between job search and recruitment methods Enhance the role of employment services , both 1 public and private Ensure that employment services are available 2 where they are most needed, particularly in rural areas Strengthen the outreach of employment services by 3 integrating with other local service providers (one-stop centres) Make greater use of digital technology to facilitate 4 job search and job matching processes 14
+THE SCHOOL-TO-WORK TRANSITION OF YOUNG MALAYSIANS 6. Youth want migrant and expatriate jobs Youth consider foreign workers as competitors for job opportunities Whether migrants and expatriate workers are a threat to job opportunities Migrants Expatriates 100 % 7 8 8 9 9 11 Do not know 11 11 90 21 Not sure 21 80 23 24 27 25 26 30 70 No, do not want the jobs they are 14 60 23 23 15 15 36 doing 24 13 50 40 Yes, compete for 30 54 49 48 47 47 45 same types of job 41 20 36 10 0 Upper- Tertiary Job Young Upper- Tertiary Job Young secondary education seekers workers secondary education seekers workers youth youth youth youth Source: KRI (2018) ▪ The different youth groups feel that both low-skilled migrant and high-skilled expatriate workers threaten their job opportunities They clearly want expatriate jobs ▪ ▪ When they do not want the migrant jobs, it is because these are ‘3D’ jobs offering too low pay , particularly when they can get higher wages from doing such jobs in Singapore 15
+THE SCHOOL TO WORK TRANSITION OF YOUNG MALAYSIANS 6. Policy implications and options To address the competition posed by foreign workers 1 Review Malaysia’s cheap labour policy The review should aim to improve jobs and incomes 2 for young Malaysians and reduce the lure of ‘3D’ jobs in Singapore The review should also address the impact and 3 implications of a cheap labour policy on the country’s productivity and growth 16
Their employment status and working conditions Khazanah Research Institute
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