Научная статья на тему 'Unemployment of the youth in Malaysia'

Unemployment of the youth in Malaysia Текст научной статьи по специальности «Экономика и бизнес»

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Ключевые слова
БЕЗРАБОТИЦА / МОЛОДЕЖЬ / МАЛАЙЗИЯ / ОБРАЗОВАТЕЛЬНЫЕ ПРОГРАММЫ / UNEMPLOYMENT / YOUTH / MALAYSIA / EDUCATIONAL PROGRAMS

Аннотация научной статьи по экономике и бизнесу, автор научной работы — Nazir Mohammad Nabil Law Bin Mohd, Ariffin Ahmad Syamil Bin Mohamad

The article analyses the dynamics and reasons of unemployment of the youth in Malaysia. As the country become more well-develop, new issue begins to pop-up, concerning on the increasing in unemployment rate in the youth. Malaysia still heavily relies on low and mid-skilled workers which emphasize cost-efficiency and highly depended on cheap labour from low-economic neighbouring country causing youth force to compete with each other. After carrying out some governmental educational programs the gap between skilled labour and low-skilled labour was reduced. The Technical and Vocational education and training (TVET) is one of the ways for the government plan to improve youth employment rate in Malaysia

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БЕЗРАБОТИЦА СРЕДИ МОЛОДЕЖИ В МАЛАЙЗИИ

В статье анализируется динамика и причины безработицы среди молодежи в Малайзии. По мере того, как страна становится более развитой, начинает появляться новая проблема, касающаяся повышения уровня безработицы среди молодежи. Экономика Малайзии по-прежнему в значительной степени зависит от низкоквалифицированных и среднеквалифицированных работников, которые приезжают из соседней страны с низкими экономическими показателями, что заставляет молодежь стран конкурировать друг с другом. После реализации ряда государственных образовательных программ разрыв между квалифицированной и низкоквалифицированной рабочей силой сократился. Техническое и профессиональное образование и подготовка (TVET) является одним из способов, с помощью которых правительство планирует повысить уровень занятости среди молодежи в Малайзии

Текст научной работы на тему «Unemployment of the youth in Malaysia»

ПОЛИТИКА, ЭКОНОМИКА И ИННОВАЦИИ № 4 (27), 2019 УДК 331.56-053.81(595)

Мохаммед Набил Ло бин Мохамед Назир, студент международного факультета Курского Государственного Медицинского Университета email: asyamil9909@gmail.com

Ахмад Шамил бин Мохамед Ариффин, студент международного факультета Курского Государственного Медицинского Университета email: asyamil9909@gmail.com

БЕЗРАБОТИЦА СРЕДИ МОЛОДЕЖИ В МАЛАЙЗИИ

Аннотация: В статье анализируется динамика и причины безработицы среди молодежи в Малайзии. По мере того, как страна становится более развитой, начинает появляться новая проблема, касающаяся повышения уровня безработицы среди молодежи. Экономика Малайзии по-прежнему в значительной степени зависит от низкоквалифицированных и среднеквалифицированных работников, которые приезжают из соседней страны с низкими экономическими показателями, что заставляет молодежь стран конкурировать друг с другом. После реализации ряда государственных образовательных программ разрыв между квалифицированной и низкоквалифицированной рабочей силой сократился. Техническое и профессиональное образование и подготовка (TVET) является одним из способов, с помощью которых правительство планирует повысить уровень занятости среди молодежи в Малайзии.

Ключевые слова: безработица, молодежь, Малайзия, образовательные программы

Mohammad Nabil Law Bin Mohd Nazir, student of the international faculty, Kursk State Medical University

email:asyamil9909@gmail.com ISSN: 2414-0309 1

ПОЛИТИКА, ЭКОНОМИКА И ИННОВАЦИИ № 4 (27), 2019

Ahmad Syamil Bin Mohamad Ariffin, student of the international faculty, Kursk State Medical University

email:asyamil9909@gmail.com

UNEMPLOYMENT OF THE YOUTH IN MALAYSIA

Abstract: the article analyses the dynamics and reasons of unemployment of the youth in Malaysia. As the country become more well-develop, new issue begins to pop-up, concerning on the increasing in unemployment rate in the youth. Malaysia still heavily relies on low and mid-skilled workers which emphasize cost-efficiency and highly depended on cheap labour from low-economic neighbouring country causing youth force to compete with each other. After carrying out some governmental educational programs the gap between skilled labour and low-skilled labour was reduced. The Technical and Vocational education and training (TVET) is one of the ways for the government plan to improve youth employment rate in Malaysia.

Key words: unemployment, youth, Malaysia, educational programs

Malaysia is one of the most developing countries in Asia. It is located at the south eastern part of Asia region with an estimated population of over 32 million, according to the statistic provided by the United Nation (UN) with a GDP of 314.5 billion USD [10]. It is the second largest economic force in the region, with a minimum monthly wage is 1,100 MYR (269 USD). The country was divided into two major mainland, Peninsular Malaysia and East Malaysia respectively.

While the Peninsular Malaysia is considered as the heart of Malaysia where majority of the financial and business activity was held. East Malaysia is also famous due to its beautiful nature environment and bringing positive economic impact as the growth on the tourism sector was tremendous. In general the unemployment rate of Malaysia in 2017 is 3.42%.

As the country become more well-develop, new issue begins to pop-up, concerning on the increasing in unemployment rate in the youth. Malaysia still heavily relies on low and mid-skilled workers which emphasize cost-efficiency and highly depended on cheap labour from low-economic neighbouring country causing youth force to compete with each other [9]. More youth end up jobless as result of this competition. Therefore, government currently taking drastic measure in reducing unemployment rate among the youth. Figure 1 shows statistic of the youth's unemployment rate from 2007 to 2017 [2].

>H

2007 2009 2011 2013 2015 2017

9,5 10 10,5

Percentage ( % )

11

11,5

12

9

Figure 1- Youth's unemployment rate from 2007 to 2017 In the Malaysia 2019 budget list, government planning to spent a worth total of 60.2 billion MYR (1.47 billion USD) for education sector as solution to recently increased youth's unemployment rate. From the 60.2 billion MYR (1.47 billion USD), 30 million MYR (7.33mil USD) had been fund to TVET programmes. Another 20 million MYR (4.88 million USD) will be used in the TVET Bootcamp Programme to increase the competency among the youth [1].

Technical and vocational education and training program (TVET) was first introduced in 1926 in the period of pre-independence [8]. In 1965, TVET was formally placed under several ministries as part of government's initial plan to reduce unemployment in the youth. TVET's main goal was to train and provide knowledge and skill to youth to fulfil the demand of skilled workforce. Unfortunately, the

ПОЛИТИКА, ЭКОНОМИКА И ИННОВАЦИИ № 4 (27), 2019 application of this program wasn't a big hit due to lack of amount of TVET institutions. As the time progress, more institutions was built to keep up the demand of skilful workforce.

As result, in 2018, more than 200 plus institution currently exist to emphasize TVET program all across the country. On recent event, in 2012, a big shift occur in TVET delivery driven by the conversion of existing vocational school into vocational college, placed under Minister of Education for post-lower secondary students (as early as 16 years old) to graduate with a diploma, giving job opportunity right after their graduation, compare to conventional schooling system applied in Malaysia [6]. In result, the gap between skilled labour and low-skilled labour (cheap labour) was reduced.

In 1985-2011, the amount for skilled labour force begins to rise, closing the gap between low-skilled cheap labours. In 1985, the amount of skilled labour was 42.03 % while the amount of low-skilled cheap labour was 57.97%. In 1996, the statistic had shown a very drastic differences with the increasing of 3.71% of the skilled labour compared to 1991 and decreasing of amount of unskilled labour to 53.32%. Over the course of few years, in 2011, the amount of skilled labour increase rapidly, closing the gap between low-skilled cheap labour, at 56.23% compare to low-skilled cheap labour at 43.77%. A total of 69,475 (51%) of the 136,062 technical education and vocational training (TVET) graduates in Malaysia are working as professionals and skilled workers until 2017 [5]. Table 1 and Figure 2 show the comparison and statistic different between percentage of skilled labour and low-skilled labour started from 1985 to 2011 [7].

Table 1- Comparison between percentage (%) of skilled labour and low-skilled labour from 1985 to 2011

YEAR PERCENTAGE OF SKILLED LABOUR (%) PERCENTAGE OF LOW-SKILLED LABOUR

1985 42.03 57.97

1991 42.97 57.03

1996 46.68 53.32

2001 47.66 52.34

2006 51.27 48.73

2011 56.23 43.77

(U ög eö

70

60

50

40

30

c

(U

o

i3 20

10

Skilled Labours Low-skilled Labours

1985 1991 1996 2001

Years

2006

2011

0

Figure 2- Dynamics of skilled labours and low-skilled labours (%) from 1985 to 2011

Malaysia's vibrant economy is considered one of the strongest in South East Asia. In March 2018, Malaysia had become a lot stable in political, due to change in government, allowing better plan to overcome the youth's unemployment rate by gradually decreasing it every months. Even though the statistic on the general unemployment rate shown a very brilliant result, the main problem is that those 3.42% is coming not from university graduates or non-university graduates, but from other resources. This is only means one major issue. The numbers of elderly who is still working had been cover up the whole problem despite they had passed their working age. Therefore, new government started to pay attention to this problem and encouraging companies either in public sector or private sector to open up employment to the unemployed especially the youth.

The Technical and Vocational education and training (TVET) is one of the way for the government plan to improve youth unemployment rate in Malaysia. According to McClean (2018), it is estimated that 75% of future jobs will involve Science, Technology, Engineering and Mathematics (STEM) knowledge and skills. This enable youth to prepare themselves with skill and knowledge through TVET system. By requiring the certificate from TVET, more companies will going to hire them to become a full-time employees due to variety skill set as their advantages [4]. The Youth and Sport Minister of Malaysia Syed Saddiq Syed Abdul Rahman said "Technical and Vocational Education and Training (TVET) programmes are

ПОЛИТИКА, ЭКОНОМИКА И ИННОВАЦИИ № 4 (27), 2019 important element to be incorporated into the plan to reduce the unemployment rate among the youth" [3]. Furthermore as a representative of the youth of Malaysia, he said: "It is time for the youth to wake up and rise to its full potential".

References

1. 2019 Budget: RM60.2 billion to be spent on education https://www.nst.com.my/news/nation/2018/11/427590/2019-budget-rm602bil-be-spent-education

2. Malaysia: Youth unemployment rate from 2007 to 2017 https://www.statista.com/statistics/812222/youth-unemployment-rate-in-malaysia/

3. Government drawing up plans to lower youth unemployment https://www.thestar.com. my/business/business-news/2018/10/13/govt-drawing-up-plans-to-lower-youth-unemployment/

4. Making TVET a relevant choice https: //www.thestar.com. my/news/education/2018/08/12/making-tvet-a-relevant-choice/

5. 51% of TVET graduates in Malaysia are working as skilled workers https://www.humanresourcesonline.net/51-of-tvet-graduates-in-malaysia-are-working-as-skilled-workers/

6. EDUCATION 2030 LAUNCH AND SYMPOSIUM https: //www. moe.gov. my/images/Terbitan/Ruj ukan-Akademik/Presentation-Education-2030-Launch-Symposium-23rd-August-2016-Hotel-Istana-Ballroom-Kuala-Lumpur/Zanariah-Hj -Ahmad/Zanariah%20Hj .%20Ahmad.pdf

7. The Impact of ForeDign Labour on the Unskilled Labour Demand in Malaysia

https: //www.researchgate.net/publication/289357144_The_Impact_of_Foreign_Labo ur_on_the_Unskilled_Labour_Demand_in_Malaysia

8. Transforming TVET in Malaysia: Harmonizing the Governance Structure in a Multiple Stakeholder Setting http://www.tvet-online.asia/issue/4/rasul-etal

9. TVET IN MALAYSIA https://yptoolbox.unescapsdd.org/portfolio/tvet-malaysia/

ПОЛИТИКА, ЭКОНОМИКА И ИННОВАЦИИ № 4 (27), 2019 10. Population of Malaysia (2019 and historical) http://www.worldometers.info/world-population/malaysia-population/

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