Ooi Tze Howe of the Higher Education Malaysia Association said youths today face underemployment more than unemployment — trapped in jobs that do not match their qualifications or pay grade.
Citing statistics department data, he observed a quarterly surge of almost 10% in underemployed youths aged between 15 and 25 — from 393,500 in Q1 to 432,100 in Q2 2025.
“The budget should seek to attract investment in sustainable growth sectors, strengthen local businesses and startup hubs, and fund reskilling in AI, problem-solving and English proficiency,” he told FMT.
Amin Mubarak, advocacy manager of the Architects of Diversity, said the 2026 budget should prioritise long-term reskilling and industry linkages.
“Automation, artificial intelligence and digital transformation are reshaping the future of work, so Malaysian youth need continuous reskilling and lifelong learning, not just one-off qualifications.
“Employers also value adaptability, critical thinking and teamwork, alongside technical skills like software development, data analytics and cybersecurity,” he said.
Amin also pressed for more funds to modernise technical and vocational education and training (TVET), especially for those without university degrees.
“TVET must align with industry needs in fast-growing sectors like technology, green energy and digital services,” he said.
Beyond jobs, both Ooi and Amin highlighted the need to address mental health and well-being.
Amin pointed to international models, citing how Canada has expanded tele-mental health platforms nationwide, making counselling accessible via apps and phone lines, especially for rural youth.
“If the 2026 budget adopts similar initiatives, such as scaling up tele-mental health access and rewarding employers who prioritise mental wellbeing, Malaysia can make mental health care more affordable, accessible, and less stigmatised, helping young people build resilience for the future,” he said.
Ooi, meanwhile, warned that rising medical inflation may push young people towards overstretched public hospitals.
“Private insurance is becoming unaffordable for youth, while public hospitals are already struggling with long queues and limited resources,” he said.