Underemployment is an issue that is currently affecting youth around the world. Graduates, who were trained to be engineers and technical specialists, are forced to jump into the gig economy job market or fill in the low-end retail service vacancies, according to the founder of the tech company.
Part of the problem is that while the higher education system is geared to fill the demands of a highly-skilled labour market, the economy has yet to catch up.
The pervasive myth being that pooling billions in foreign direct investment (FDI) is a sign of a healthy economy. While FDIs are a good thing, in general, they do not necessarily translate into job creation spill-over.
Therefore, it may be more beneficial to look into reviving the national spirit of producing, innovating and creating.
A healthy economy is an economy that not only consumes but also produces. An expert urged that the government look into pushing and promoting Malaysian tech companies and learning from past mistakes – something that is driven by the private sector.
While Malaysia maybe not be able to compete in heavy industries due to the economy of scales, tech application is something that the country can push and promote.
Government services and procurements should prioritise indigenous products, from payment gateways to secure emails or mobile apps; Malaysia should create an atmosphere and an ecosystem where Malaysian tech can prosper.
The direction in which the government should encourage is to nurture grounds that can inspire fresh graduates to create and invent new products and services.
However, this is not a call for a lopsided affirmative action policy; this Malaysian tech initiative must be based on merit and that the private sector must drive it, the expert noted.
As is evident in history, a monopoly-based affirmative action will only stifle innovation. Rebadging imported products while trying to push it as a Malaysian innovation is a mistake that must not be made again as it will be bad for the market and it will not spur growth.
Tech Jobs Creation for Malaysian Youth: Malaysian Tech creates jobs, quality jobs for Malaysians. While there is a need for Malaysian companies to compete by merit on a global scale, it is also important to note that competition must be based on a level playing field.
Big conglomerates with local partners may be able to offer a more attractive package. However, they do not come in the form of a long-term investment for the nation, mostly in the form of quick profit by the local partner.
If indeed the government is serious in creating good jobs for Malaysian graduates, the key will be starting with local Tech-driven by merit.
Budget 2020 Will Support More Tech SMEs
OpenGov Asia recently reported that under Malaysia’s new 2020 Budget, the local technology industry will continue to receive attention in the form of incentives and guidance.
The government is intent on further boosting the capabilities of local SMEs and start-ups by strengthening digital content, embracing digitisation, enhancing e-commerce, and adopting 5G technology.
According to another report, entrepreneurship, small and medium enterprises (SMEs) received a major boost through the budget.
Among the initiatives announced by the Finance Minister were the RM455 million earmarked for Bumiputra entrepreneurs.
The President of the SME Association of Malaysia welcomed the measures, saying they would benefit SMEs ahead of Malaysia’s journey towards Shared Prosperity Vision (SPV) 2030.
It lauded as being the best budget for SMEs as the nation nears the end of the 11th Malaysia Plan and is gearing towards the 12th Malaysia Plan and the SPV 2030.
Support for local SMEs and the tech industry bodes well for the youth and graduates looking to enter the job market now.
