Malaysia Faces Dual Challenge of Talent Shortages and Underused Graduates

LocalBusiness & Finance
16 Sep 2026 • 7:03 PM MYT
Migrant Times
Migrant Times

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Malaysia Faces Dual Challenge of Talent Shortages and Underused Graduates

KUALA LUMPUR — Malaysia is facing a dual talent challenge, with employers struggling to find workers with specialised skills while many graduates remain in jobs that do not fully utilise their qualifications, according to Taylor’s University Programme Coordinator and Senior Lecturer Dr Paul Anthony Maria Das.

He said the issue should not be viewed simply as a shortage of people, as Malaysia also needed to ensure that available talent was matched with suitable employment opportunities.

Dr Paul said shortages existed in specialised areas, while graduates could simultaneously find themselves underemployed because the jobs available did not fully utilise their skills and qualifications.

He said universities therefore needed to prepare graduates for the changing demands of the workplace, while employers and policymakers had to ensure that sufficient high-value jobs were created to absorb skilled talent.

“If we produce skilled graduates but high-value jobs are not created, underemployment rises,” he said.

Dr Paul said the mismatch could eventually contribute to brain drain, as skilled workers who could not find suitable opportunities domestically might look overseas for better career prospects.

He said Malaysia needed to focus not only on producing graduates with relevant skills, but also on creating career pathways that allowed them to apply and further develop those skills locally.

The situation also highlighted the importance of stronger links between universities and industry, he said, particularly in sectors where employers were experiencing persistent shortages.

Dr Paul said universities were increasingly recognising the importance of artificial intelligence and digital capabilities as the nature of work changed.

He said graduates needed to develop AI and digital skills alongside problem-solving abilities to remain competitive in future labour markets.

However, producing graduates with these capabilities would not be enough if the economy failed to generate jobs that matched their skills, he said.

He said employers also had a responsibility to provide young workers with workplace training and clear opportunities for career development.

The mismatch between available skills and employment opportunities could otherwise create a cycle in which graduates remained underutilised while employers continued reporting difficulty finding the specialised talent they needed.

Dr Paul said Malaysia therefore needed to address both sides of the equation — strengthening the skills pipeline while ensuring that investment and economic growth generated higher-value employment.

He said investment should bring knowledge, skills and better opportunities for local workers rather than simply increasing the amount of capital entering the country.

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