NIBONG TEBAL: Malaysia has been burdened with the issue of unemployment among local graduates since the pandemic until present.
Human Resources Minister Steven Sim said, in the second quarter of this year, the underemployment rate stood at 37 per cent compared to 32.8 per cent in the second quarter of 2019.
He said the issue could potentially become a long-term problem for the country.
"This is because the talent that should be in STEM (Science, Technology, Engineering and Mathematics) and TVET (Technical and Vocational Education and Training) industries or universities are not in the right places.
"Many of them lack the specific information and skills needed to help with the transition from education to employment, such as soft skills and others.
"Imagine if five per cent of the workforce, around 750,000 workers, fall into the underemployment category. If their productivity decreases by 20 per cent due to their skills not matching the job requirements, it would equate to the country losing productivity equivalent to 150,000 workers.
"This could lead to a GDP (gross domestic product) growth reduction of 1-1.5 per cent, or about US$4.2 to US$6.3 billion in economic output annually," he said.
Sim was speaking at the opening ceremony of YES! Rock the School Mega Penang 2024 at Universiti Sains Malaysia's engineering campus here today.
The event was officiated by Yang Dipertua Negeri Tun Ahmad Fuzi Abdul Razak.
Sim said, recognising the importance of long-term strategy, his ministry had consistently formulated policies and frameworks to strengthen the future workforce.
He said his ministry, through Talent Corporation Malaysia Bhd (TalentCorp), had implemented the YES! Rock the School initiative aimed at equipping young people for successful career paths.
The two-day programme was attended by over 550 students and about 150 teachers and school counsellors from 34 schools statewide.
Sim said, to strengthen collaboration with the Education Ministry in empowering local talent, starting January next year, his ministry through TalentCorp would launch the YES! Counsellors initiative.
The pilot project will involve 162 counseling teachers who will benefit over 100,000 students in Penang by guiding them in their career decisions.
This year-long programme will provide counselors with essential information about industry opportunities and demands to help students choose the right career path.
Targeted at primary and secondary school students, the YES! Rock the School initiative aims to provide industry exposure and ignite interest in STEM careers.
Aligned with Penang's vision to cultivate future-ready talent for high-tech industries, the programme equips students with valuable industry insights and knowledge.