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.

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