BRINGING ABOUT POSITIVE CHANGE: Umno Youth vice-chief Khairul Azwan Harun believes several measures, including ones formulated outside the box, should be used to improve the standard of living of youths and their value as the country’s human capital. He spoke to Abdul Jalil Hamid, Syed Umar Ariff and Awaina Arbee on providing housing and education, among others, for the country’s younger generation
Q: Why do you think many fresh graduates find it difficult to get a job?
A: This is a problem particularly prevalent among Malay graduates, since most are not proficient in English. And this has retarded their potential (in terms of employability). It is a handicap that has led to a communication barrier. Some cannot express themselves confidently especially those working in the private sector.
For me, the solution is simple — we must revert to teaching Mathematics and Science in English. Now, I know that this may sound politically incorrect, but I have seen its benefits through my own personal experience.
My siblings and I, who studied the two subjects in English, can see a (positive) difference, as opposed to my children today. My kids are struggling to learn the language, and I have to send them to English tuition classes. I am not sure if the government is planning to revert to teaching the subjects in English, but I believe the problem with Malay graduates is centred on their command of the English language, or lack of it.
Secondly, some Malay graduates are reluctant to improve themselves by acquiring new skills. I am talking about technical and vocational skills. But, when I mention technical and vocational skills, it does not necessarily mean skills revolving around the use of tools or mechanical hardware.
For instance, accounting is a technical subject. I have been telling (Umno Youth chief) Khairy (Jamaluddin) that the Technical Vocational Education and Training (TVET) programme should not be narrowed down to workshops alone. For me, accounting, architecture and law are technical subjects, too.
Accounting is (important) in corporate finance. For example, you need skills to manage a firm’s tax exposure, among others. Basically, you to have be technically savvy in the field. Hence, TVET should go beyond the traditional understanding of the subject.
Q: Is there any other reason aside from their lack of skills in certain areas?
A: The salary scale. Most are only interested in working blue-collar jobs. As a result, they are still in the kampung, working odd jobs. “Kais pagi, makan pagi” so to speak. During career carnivals organised by Barisan Nasional Youth, many youths who turned up said they were only interested in jobs that pay at least RM1,500. However, after scrutinising their skills and resume, we could only suggest to them jobs with salaries ranging from RM800 to RM900. But that is not what they wanted. And that is why such jobs are mostly snapped up by foreign workers, who do not mind salaries of between RM900 and RM1,000.
So now, they are now mostly doing odd jobs, (in a social environment) that could lead to social ills, such as drug abuse. In light of this, I have asked the National Anti-Drugs Agency (Nada) and National Association for the Prevention of Drug Abuse (Pemadam) to rebrand themselves and include collaborative works with relevant agencies to help such youths look for jobs. That should also be part of Umno Youth’s responsibility because we have a huge network (to assist in such endeavours).
As it is in science and technology, there are still career opportunities unexplored by Malaysians. For example, there are a lot of vacancies for medical equipment technicians, who are highly sought after. There are many such technicians in other countries, but not Malaysia.
The Higher Education Ministry, or perhaps the Health Ministry, should introduce these types of career paths to youths, instead of harping on civil engineering. There are lots of career paths in mechanical engineering, for example.
Q: Are youths lacking drive to improve themselves, especially in education?
A: The availability of education in Malaysia is at its best right now. To me, if the youths are still ignorant about the education opportunities available to them, what else can the government do? My advice to them is to grab this opportunity head on.
(Higher Education Minister) Datuk Seri Idris Jusoh has done his best. You have TVET, you have GiatMara, among other initiatives. If you are not really interested in academics, just take a three-month course at GiatMara. At least you can gain something. Even a certificate is good enough for now, before you decide to move on to other levels of education.
My father was an engineer. He started out as a technician and only pursued his degree when he was 35 years old. So do not underestimate these late learners. They can become someone important one day. But we must work hard for it.
For Umno Youth, it is our duty to elevate the self-worth of young Malays, so that they will realise the importance of education. You can be financially poor, but with knowledge, you will rise above all.
Q: You mentioned the youths’ distaste for the current salary scale. Surely it is a problem that affects everyone across the board?
A: The labour cost paid by companies in the 1970s was only 21 per cent, based on their revenue back then. Currently, the figure has risen to only 24 per cent. Can you imagine, in a span of 30 years, we only managed to increase labour costs by a meagre three per cent.
But other developing countries, even Thailand, are paying more than 50 per cent for the labour cost. Here, if a company’s recorded revenue is RM10 million, it means only RM2.4 million would be spent on labour cost. Of course, capitalists are motivated by the need to make money. But, we have a social responsibility to grow the nation together. I have always believed in investing for the people. You’ll get more when your people are more productive and efficient at work.
This is something that should be practised by government-linked companies (GLCs) and the private sector. We cannot be a high income nation if we only pay 24 per cent as labour cost.
Hence my support for the prime minister’s move to recalibrate the budget. He touched on the huge disparity between the salaries of senior management and chief executive officers of GLCs and their workers.
If our labour cost is only 24 per cent, why can’t you increase the salaries of your lower level workers? They will be more productive and more happy at work. I am not asking the CEOs to slash their own pay, but it would do no harm to give your staff a substantial salary hike.
I would like to see the GLCs start the ball rolling. The younger generation would relish working for companies with attractive salary packages.
Q: At the same time, it seems certain segments of youths have their priorities mixed up upon entering the workforce. For example, they don’t save to buy a house.
A: The question is whether they can afford to take out a loan. They do not mind staying in the outskirts of Kuala Lumpur, such as in Rawang or Dengkil, but do they have the access to home financing? So, here’s a question for the financial institutions: to what extent are they willing to help young graduates own their own houses?
Q: Has the government done enough to facilitate home ownership among youths?
A: Housing for youths has always been the top priority issue championed by Umno Youth. There are plenty of houses, but they are not affordable for young graduates to buy or rent.
I am hoping that the government would go the extra mile to lend a helping hand. Normally, buyers would have to pay a 10 per cent deposit to housing developers, and the government had already set up a special fund (MyDeposit scheme) to help people acquire a house.
However, there have been complaints about the difficulty to gain access to the fund. Perhaps the delivery of its services needs to be looked at.
Even though houses are sprouting everywhere, the selling and rental prices are high, a matter linked to the issue of land cost. State governments, like Perak and Selangor, decide the cost of land premiums according to a formula provided by the Valuation and Property Services Department.
Q: So the developers’s hands are tied to the premium rate when it comes to determining house prices?
A: When the premium is steep, land developers are forced to increase the price of houses to recover building cost. To avoid all this, there needs to be government intervention in deciding a feasible premium rate. Possibly, it could be regulated by the government, and perhaps the land to be developed for affordable houses should not be imposed a high premium.
Let this be a nationwide effort to help young Malaysians acquire their first homes. It would be highly appreciated if property developers could also focus on building low-cost as well as medium-cost houses.
Other than that, I have an idea that may help to solve this problem. Perhaps a special fund should be set up, a government-regulated national depositors’ trust fund as an economic measure to cushion the rising cost of living.
This fund could be used to help youths who had just started working to secure house rental deals. Even if the house rent is RM1,000 a month, people have to pay up to a three-month deposit of RM3,000. Using the trust fund, the government can provide the money as a loan to those who need help in paying their deposits. There should be a way to allow this.
Q: Can you elaborate more on the special fund?
A: This is an idea on how the government can give back the people their money, and more. Similar to what the Employees Provident Fund and Retirement Fund Incorporated are doing, this fund would be managed for investments.
Currently, there are about RM50 billion worth of deposits in the country, including those held by utility companies. So, the people can get back returns if the money is channelled into the fund and invested accordingly. Even if the deposit is RM1, the government can ensure returns. Depositors will earn more from their deposits by raking in annual dividends.
Legally, deposits belong to the depositors and not utility companies or lawyers, who are keeping the money as a form of security.
It is our money and we can make a profit from it. It is not theirs (agency to whom the deposit is paid). If I’m renting a house in Kuala Lumpur for RM5,000 a month, then I need to pay a two-month deposit amounting to RM10,000. If you include the utility deposit, it means I have to pay RM12,000.
This is one of the ways the government can help the people. The government can provide a guarantee. Such trust funds have already been set up by other countries.
Q: Switching to a different topic, what do you think of Tun Dr Mahathir Mohamad’s new political party?
A: Umno Youth’s stand today is very clear. We will defend the leadership of Datuk Seri Najib Razak as the party president as well as the prime minister. With the spirit of togetherness, not only are we ready to defend him, but also be on the offensive, especially during these trying times. I see the formation of this new party as only a way for them to fulfil their own political ambitions.
We do not take their existence lightly. We see the new party as a challenge as some of the members of the new party are former Umno leaders. But, Umno members have a deep sense of loyalty to the party, and that does not wane.
These former members say they despise and hate Umno, but yet, they still use the word “Bersatu” in their new party’s name. In fact, that particular word is a part of Umno’s name, which is “Pertubuhan Kebangsaan Melayu Bersatu”.
If it is clear that they are trying to damage the democratic system of the country, if they are trying to topple Najib’s leadership, we, the youth will rise to fight them.