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A fundamental overhaul of immigration policies is imperative for Malaysia to break free from its reliance on low-skilled, low-wage foreign workers and instead attract and retain high-skilled talents. This shift is essential for fostering an agile, resilient, and future-ready workforce, including the cultivation of high-skilled and high-income professionals such as mining engineers and information and communications technology (ICT) experts, as highlighted by Bank Negara Malaysia (BNM) in its recently released Economic and Monetary Review 2023 report.
The report underscores the pressing need for labour market reforms in Malaysia to address the prevalent skills mismatch. BNM expressed concern over the substantial number of graduates unsuitable for high-skilled positions, coupled with firms encountering challenges in filling existing high-skilled roles. Alarmingly, over half of the firms surveyed reported difficulty in finding employees with adequate interpersonal and communication skills.
BNM advocates for greater collaboration between the government, industry, and academia to enhance the quality of higher education curricula and workforce training programs as a means to alleviate skills mismatches. Additionally, the looming threat of automation, projected to displace up to 4.5 million jobs in Malaysia by 2030, poses significant challenges, particularly in the agriculture and manufacturing sectors. The rise of generative artificial intelligence (AI) further compounds these challenges, potentially impacting white-collar knowledge workers engaged in tasks such as data analytics and routine decision-making.
Furthermore, Malaysia faces the impending challenge of rapid population ageing, potentially transitioning into an aged society by 2044. This demographic shift poses human capital constraints that could impede economic growth. Despite these challenges, BNM highlights some positive trends, including a return to pre-pandemic unemployment rates and an increase in the number of employed high-skilled workers.
However, BNM emphasizes that Malaysia's compensation of employees' share of income remains lower than that of most advanced economies, indicating a relatively smaller portion of the economic pie going to workers. In light of these challenges and disparities, BNM stresses the urgent need for comprehensive labour market reforms.
BNM asserts that policy strategies should prioritize lifting wages and income for the populace, emphasizing the expeditious implementation of national strategic initiatives to create high-paying employment opportunities. As Malaysia navigates through these multifaceted challenges, concerted efforts to revamp immigration policies, address skills mismatches, and foster inclusive economic growth are paramount for the nation's sustainable development and prosperity.
Evon Anak Jerim is a content creator under the Newswav Creator programme, where you get to express yourself, be a citizen journalist, and at the same time monetize your content & reach millions of users on Newswav. Log in to creator.newswav.com and become a Newswav Creator now!
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