Noting that a few hundred thousand fresh graduates are produced annually, MEF president Syed Hussain Syed Husman said the unemployment rate among this number could rise even higher this year, at a time when businesses were in “survival mode”.

He said firms should be able to absorb around 30% of new graduates through natural recruitment, thanks to attrition and business plans.

“With continuous government support – including wage subsidies, tax benefits and other incentives – employers may be able to absorb another 20% and train them on industry needs such as IR 4.0 (Industrial Revolution 4.0), skills training and apprenticeship programmes.

“Another 30% could be hired by new industries or investments through the international trade and industry ministry (Miti) and its agencies like the Malaysian Investment Development Authority (Mida) and Malaysia External Trade Development Corporation (Matrade).

“The remaining 20% could be trained to become entrepreneurs,” he said in a statement today.

Syed Hussain also lauded the government’s new RM20 billion Pemerkasa stimulus plan, describing it as a crucial lifeline for employers.