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Unlocking Youth Potential in Malaysia: Addressing the Skills Gap for Peace and Development

Budget: Heriot-Watt's Vision for 2024 Higher Education

By Professor Mushtak Al-Atabi, Provost and CEO, Heriot-Watt University Malaysia

The global issue of youth skills mismatch has profound effects on economies and communities worldwide. As technological advancements, globalisation, and shifting job market demands reshape industries, many young people find their skills misaligned with employers’ needs. This challenge is not unique to Malaysia but is a global phenomenon.

Youth Unemployment Statistics

Closer to home, the unemployment rate for individuals aged 15 to 24 stands at 10.6%, translating to approximately 306,800 unemployed youths as of January 2024. For those aged 15 to 30, the unemployment rate is 6.7%, affecting around 439,700 young people. Although Malaysia’s overall unemployment rate remains steady at 3.3%, these figures highlight a significant issue: the disparity between the skills of our youth and the demands of the labour market.

The Urgency of Skills Development

Mismatch Between Skills and Employer Needs

A joint study by PwC and UNICEF reveals a substantial mismatch between young people’s skills and those required by employers. Many lack qualifications aligned with available job opportunities, impeding their entry into the job market. Additionally, many young workers are engaged in the informal economy, facing low wages, unsafe working conditions, and job insecurity. Even those in formal employment often experience underemployment, with their roles not fully utilising their skills or meeting employer expectations.

The Role of Educational Institutions

Universities and educational institutions are crucial in bridging this skills gap. Historically, they have driven economic growth, but they must now address the complex challenges of a rapidly changing world. Education must evolve to prepare young people not only for economic participation but also for contributing to peace and sustainable development.

Enhancing Training and Development Opportunities

Continuous access to training and development opportunities for young people is essential to tackle these challenges. This involves overcoming financial constraints, geographical limitations, and a lack of information about available resources. Collaborative efforts between educational institutions, government agencies, and the private sector are vital to bridging these gaps.

Realigning University Programmes with Industry Demands

Universities must lead this transformative journey by realigning their programmes with industry demands and fostering a culture of innovation and adaptability. This realignment should prioritise practical applications, real-world skills, and resilience alongside academic achievements. Strong partnerships with industry leaders are crucial for developing forward-thinking curricula supported by practical experiences such as internships, hands-on projects, and mentorship by industry leaders. These initiatives will better prepare students for the dynamic demands of the workforce.

Hands-on projects, in particular, enhance learning by allowing students to apply theoretical knowledge in real-world scenarios, reinforcing their understanding and retention of material. These projects also foster critical thinking, solutions-providing skills, and collaboration—key competencies for success in the workplace. In addition, integrating social and emotional learning into education and training systems can further equip youth with skills for empathy, resilience, and conflict resolution.

Heriot-Watt University Malaysia’s Approach

As an example, Heriot-Watt University Malaysia has implemented its Purpose-Driven Education approach to enhance emotional intelligence and professional skills among students and staff since 2017. Through its EmPOWER Programme, the University cultivates purpose-driven leaders with the skills to tackle global challenges and contribute to sustainable development. Students participate in projects that involve raising funds for non-governmental organisations (NGOs) aligned with their sense of purpose, demonstrating how education can be a catalyst for meaningful community engagement.

The IMPACT Transcript Initiative

This year, the University launched its IMPACT Transcript initiative, a pioneering approach to higher education to celebrate students’ multifaceted achievements beyond conventional academic success. The transcript chronicles their journey through the EmPOWER programme, which fosters leadership, innovation, and civic responsibility across four levels: Watt, Kilowatt, Megawatt, and Gigawatt. Structured around six core domains—including Global Citizenship, Emotional Intelligence, and Employability—the transcript highlights students’ engagement in community service, NGO collaborations, and research projects. It showcases their personal and professional growth, reaffirming the university’s commitment to developing global purpose-driven leaders equipped with the skills to lead with purpose and integrity.

Promoting Global Citizenship and Career Guidance

Moreover, promoting global citizenship education within curricula at all levels, including Science, Technology, Engineering, and Mathematics (STEM) and Technical and Vocational Education and Training (TVET), will enhance understanding of global issues and empower youth to act as agents of change.

Furthermore, universities should invest in career guidance and mentorship programmes to help students understand the skills and qualifications needed for career success. By creating robust partnerships with employers, universities can ensure that students are aware of job opportunities and make informed decisions about their future careers. Through these concerted efforts, Malaysia can address the skills gap and unlock the full potential of its youth, fostering peace and development for the nation and beyond.