SABAH’S high rate of unemployed graduates is due to a mismatch between what is taught in universities and what the industry needs, a state assistant minister said.

Focus is also misplaced on preparing graduates for jobs in big corporations where competition is stiff, when there are more employment opportunities in the small-and-medium enterprises (SMEs) sector, said Assistant State Education and Innovation Minister Jenifer Lasimbang 

The problem of Sabah’s unemployed graduates came to the fore again recently as public attention following the controversial appointment of the Universiti Malaysia Sabah vice-chancellor.

Lasimbang said a study is under way to find out the reasons for the 40,000 unemployed graduates in Sabah.

There are no figures on the employability of UMS graduates, she said, but admits the numbers are “bad” and far worse than the 61% employability stated by the Malaysian Academic Movement (Gerak).

“We are trying to work with UMS to make their graduates more employable. Even Sabah’s Universiti Institut Teknologi Mara (UiTM) is doing much better at present. 

“It is time for UMS to look at better industrial linkages, review their curriculum and increase their cooperation with ministries, industries, businesses and government-linked companies,” she told The Malaysian Insight. 

In 2018, the unemployed in Sabah numbered 112,000, the second highest in the country. Graduates make up 40% of the number, according to the Statistics Department.

The state’s unemployment rate is 5.8%, significantly higher than the national rate of 3.3%.

Bigger not better

Institute Development of Studies chairman Simon Sipaun agreed skills and industry mismatch are among the chief reasons graduates in Sabah are jobless. 

Sipaun said this is a waste of human resources, a drag on the state’s economic growth and cause of poverty. 

The government should step in to assist youth with start-up capital and training so they can strike out on their own, he said.

“Getting young people to start their own business is a great (idea) because not only will that help youth to be self-employed, entrepreneurship could be an alternative source of new jobs and opportunities,” he said. 

Lasimbang said universities are focused on partnerships with big firms and industries when the reality is that more jobs are available in the SME sector.

Graduates and their parents are also captivated by the notion that “proper” jobs are only to be found in big corporations.

“SMEs are actually more significant. This is an area my minister is looking at to enable graduates to start out (in SMEs via) internship programmes,” she said.

Last year, Lasimbang posted on social media that parents were contacting her for help to find jobs for their graduate children.

The Moyog assemblyman said UMS and other higher education institutions in the state should review their curriculum to include practical and entrepreneurial skills.

“The institutions in Sabah may need to look into making small changes to allow their students to learn practical skills. 

“Having developed entrepreneurial abilities in university, Sabah graduates will have more options and can dive right into business after graduating.”

Starting their own businesses also means creating jobs for others.

Lasimbang said her ministry is conducting a study with the State Economic Planning Unit to identify the sectors where human capital is needed.

The three main sectors that have been identified are food and agriculture, tourism and services, and industrial.

“Sabah’s strength is in these three industries and we have not invested enough in churning out jobs, innovation and applicable technologies to boost the potential of these three areas.” – August 22, 2019.