AS budget day approaches, addressing the setbacks of the unprecedented Covid-19 pandemic has been intense, with youth being a big segment and one of the target groups that need assistance.
Youth aged between 15 and 24, who represent about 16 per cent of the population, are one of the vulnerable groups that have been impacted by the crisis.
Key issues such as unemployment and under-employment, access to education and home ownership should be considered for action to help our youth.
UNEMPLOYMENT AND
UNDEREMPLOYMENT
Concerns about youth employability have been raised since the start of the pandemic as many are either unemployed or underemployed. This is backed by evidence gathered from EMIR Research's focus group discussion (FGD) for the third-quarter poll.
A participant said: "The first thing is employability, whether we'll get employed or not. We are the unlucky batch. Because when we want to find jobs, the pandemic happens."
Youth unemployment rate was at 10.5 per cent last year, much higher than the overall unemployment rate of 3.3 per cent. The unemployment rate represents 295,800 youth aged between 15 and 24.
Underemployment is also a concern as there seems to be a mismatch between graduate salaries and qualifications despite their increasing employability. Youth with a degree or diploma have no choice but to take up jobs with lower salaries and not in the industry related to their expertise.
During the FGD, another participant said: "After I finished my degree, I worked in a non-government school. I was paid RM1,000 a month. My friend who worked as a cleaner at the Kuala Lumpur International Airport was paid RM1,800 per month. (But) I think it's better for me to work rather than pursue a degree."
Job creation and training in line with the relevant industries, especially post-pandemic, are crucial to help mitigate these issues for youth, while upskilling or reskilling them to meet the demands of the industries.
For instance, the hiring and training incentives provided by the government under the Penjana Economic Recovery Plan are helpful for companies and should be continued in a transparent manner.
These initiatives would be more sustainable in improving employability while generating the targeted 35 per cent of high-skilled talent in the workforce. It can also strengthen youth's social safety net rather than cash assistance, which could be unsustainable in the long term as youth would possibly become dependent and it can lead to abuse of aid.
DIGITAL PERKS AND QUALITY INFRASTRUCTURE FOR EDUCATION
The pandemic has forced us to leverage technology in many ways like getting access to education. However, not everyone is as privileged, especially those from the Bottom 40 per cent income group and those living in rural areas, where Internet connectivity or cost becomes the barrier.
Data from the Department of Statistics Malaysia show that there is a gap between Internet access in the urban and rural areas by 92.2 per cent and 81.5 per cent, respectively. It is time to pay close attention to this issue as schools are closed due to rising Covid-19 infections and students have to rely on online learning.
Besides improving the quality and coverage of digital infrastructure, digital incentives should be given to those in B40 households and those living in rural areas for digital-related purchases such as tax relief for computers or tablets.
The government can allocate
a portion of expenditure to provide digital equipment to underprivileged students.
STRENGTHENING RENTAL MARKET FOR FIRST-TIME YOUTH HOUSE BUYERS
Although this issue may not be as important or urgent as unemployment or education, home ownership has become more difficult for youth, particularly those from the B40 group, due to job uncertainties and insufficient incomes. To make home ownership viable for youth, rent-to-own schemes should be implemented across the nation.
Under the scheme, youth who plan to own a house but can't afford it may opt to rent at affordable rates for a few years.
Meanwhile, they can start saving to buy a house at the end of the rental period or when they secure a mortgage loan. This would be in line with the proposal to create jobs for youth to start having a secure income.
The writer is research analyst at EMIR Research, a think tank focused on strategic policy recommendations based on rigourous research