Kuala Lumpur: Malaysia is facing three major paradoxes, which present significant challenges to the country’s labour market, said Human Resources Minister Steven Sim. He explained that the first paradox is the low median wage, which does not align with the country’s low unemployment rate.

According to BERNAMA News Agency, Sim stated that the low unemployment rate, in theory, should allow workers to negotiate higher wages, as they have bargaining power due to the shortage of workers in the market. He made these remarks at a press conference after conducting a working visit to the Federation of Trade Unions of Independent Statutory Bodies with Segregated Remuneration.

Sim identified the second paradox as the mismatch in the number of graduates compared to industry feedback, which indicates a need for more highly skilled workers. He noted that feedback from the industry suggests the need for more engineers and technicians, with some estimates indicating an additional 60,000 workers are necessary to meet industry needs. Despite this demand, individuals with high qualifications are not securing jobs that match their skills, a situation Sim attributes to the relatively high underemployment rate of 36.8 percent.

The third paradox highlighted by Sim is the insufficient number of new job opportunities to accommodate the growing number of graduates from technical and vocational education and training (TVET), and science, technology, engineering, and mathematics (STEM) fields. He pointed out that while universities graduate approximately 300,000 individuals annually, with one-third in the STEM sector, the economy is only generating around 50,000 skilled, high-paying job opportunities.

In response to these paradoxes, Sim mentioned that the government has been working diligently over the past two years to strengthen initiatives aimed at improving the skills of the local workforce and aligning them with industry needs through the MADANI Economy Framework. The framework is intended to ‘reconfigure’ the economy, raising its ceiling and value to generate more job opportunities.

Sim also stressed that the government is collaborating with educational institutions and industries to bridge the gap between graduates’ skills and market demands. He acknowledged that while the problem cannot be solved overnight, immediate action is necessary to prevent it from worsening.