Sijil Pelajaran Malaysia (SPM) exam results are out. While we can't blame educators and parents for being fixated on stellar results, there is a far more critical question for policymakers: how many of the 373,525 who sat the examination will enrol in universities or tertiary institutions?
Our guess is — guided by past trends — only half of the eligible SPM holders would. Start with 2019. In that year, the Statistics Department disclosed a shocking number: 71 per cent of SPM holders were not interested in continuing their studies.
The following two years showed slight improvements, according to Education Ministry data, but still within the worry range for policymakers: 35 per cent (2020) and 49 per cent (2021).
Other surveys and polls conducted in 2022 and last year showed a return to the downward trend.
There are a few reasons for the lack of interest in diplomas or degrees. First, tertiary education has become prohibitively expensive. Consider a relatively popular course in one of the premier public universities: the Bachelor of Arts in English at Universiti Malaya.
This seven-semester degree costs RM56,900. A degree in nursing science there costs a whopping RM133,000. Dare to do medicine? Be prepared to fork out a savings-emptying fee of RM673,200.
If the course fees are this prohibitive for many Malaysians, imagine how many times more it will cost to sign up for a similar degree in private institutions. Little wonder, SPM holders have begun talking about the returns of investing in tertiary education.
Studies after studies, especially ones by the Khazanah Research Institute (KRI), tell us that many graduates just don't see their diplomas or degrees giving them the returns. What is worse, one KRI study published this year said 40 per cent of graduates could not find employment upon graduation.
The result? Some are forced to opt for low-skill jobs with low pay. Others become informal workers. But a constant quarrel continues between employers and academics.
Employers say graduates are not employable as they are made out to be. On the other hand, academics say the industries are not creating the right jobs for the degrees the graduates come armed with.
A 2022 study by KRI, "Fresh Graduate Adversities", supports the academics' view by disclosing that our industries are not creating enough high-skilled jobs.
The two trends — loss of interest in tertiary education and the opting out of formal employment — have serious repercussions.
One immediate effect will be on Malaysia's goal of producing 35 per cent skilled workers by 2030. Human Resources Ministry data suggest that the country has 28 per cent skilled workers. To produce seven per cent more skilled workers in less than six years will be challenging, especially with close to 50 per cent of SPM holders opting out of tertiary education.
Counselling SPM holders alone won't help. For many of them, "home" economics is at play. They need to find jobs to support their families and make ends meet.
Even if some of the 50 per cent SPM holders can be counselled into going to universities, they just lack the wherewithal to pay the fees. A deep dive for a long view is needed here.