Lee Heng Guie said structural reforms in these areas need to take place to create a more resilient economy going forward.

“We have witnessed our education sector suffer during the pandemic. This requires reforms to improve our local talent pool,” he said at an InvestMalaysia conference on Building Resilience Amidst Volatility.

He added that there is a need to empower students, especially in the areas of science, technology, engineering, and mathematics (STEM) to avoid exacerbating the country’s labour shortage.

“The government should establish a three-month internship programme for fresh graduates with local industries so that they can learn how to adapt to the work environment. They will also be able to hit the ground running,” he said.

Lee also pointed out that the weakening ringgit was also a major factor in pushing local talents to work in countries like Singapore.

Another area that the government must look into is healthcare which, Lee said, was severely underinvested.

“When Budget 2023 is tabled in October, at least 5% should be invested into healthcare because the current level is too low. At only 2.59% of the gross domestic product (GDP), it is way below the benchmark,” he said.

He also pointed out that SERC has pushed for a universal healthcare system that will help those in the M40 and B40 groups who spend a lot on healthcare.

“We need to target preventative healthcare rather than treatment. Hopefully, this will be tabled as well during the budget,” he said.

Ultimately, Lee said, strong ownership and political institutions are needed to execute these reforms effectively.

“If these reforms are executed well, this will incite investor confidence, enhance competitiveness and increase economic growth and productivity,” he added.