This was more than three times the national unemployment rate of 3.1%, according to Bank Negara statistics from its 2016 annual report, quoted by The Star daily.
Previously, youth unemployment was estimated at 9.5%.
Bank Negara put the rise in youth unemployment down to a lack of experience as well as higher information asymmetry in the labour market. Poor communication skills were also to blame, the report said.
It said that in terms of employability, those with tertiary education made up the highest percentage of unemployed youths at 15.3%.
About 16% of youths aged 15 to 24 were reported to have tertiary education, while the remaining 84% had secondary schooling, The Star said.
It quoted the central bank as saying that cautious business sentiments and moderating economic performance had also prevented businesses from hiring more employees.
“Slower hiring has had a wider impact on the economy, affecting particularly youth and new jobseekers,” Bank Negara said.
However, the report added that the trend was not unique to Malaysia as unemployment rates for young graduates in regional economies also tended to be higher than non-graduates.
It said this was likely related to the nature of global supply chains and related patterns of job creation in emerging economies.