INFORMATIVE SPEECH PORTFOLIO

Name: Nazeyra Bt Jamaluddin Topic: Unemployment rate in Malaysia

Student ID: 2020996855 Group: CS2464A

Introduction
Introduce topic Unemployment is a very important issue for every country,
especially a developing country with a tremendous
population. High unemployment means that manpower
resources are not being used efficiently.
Credibility
Malaysia’s unemployment rate increased to 5.3% in May
2020 from 5% in April 2020 as the number of unemployed
persons rose by 47,300 to 826,100 individuals, according
to the Statistics Department today.

Malaysia’s labour market felt the brunt of the movement

control order (MCO) implementation, with unemployment
in April spiking to 5%, the highest since 1990.

Background of topic Being a university graduate no longer guarantees you a

job.
Central Idea Unemployment cannot be ignored in a country because it
can be a cause of disaster if not taken into account.
Body: (Describing chart[s] and/or graph[s])
Description of data The bar chart shows the number of unemployed Malaysians
(Chart 1) from 1982 to April 2020.

The highest unemployment rate was 7.4% in 1986. While the

lowest unemployment rate was 2.0% in 1997.

Analysis of data 1. Starting from 1999 the rate of unemployment in Malaysia

(Chart 1) gradually increased year by year.

2. The unemployment rate in Malaysia increased significantly

within 3 months starting from January 2020 at the rate of
3.2 % to 5.0% in May 2020.

Description of data The bar chart shows the Malaysia unemployment rate from
(Chart 2) 2008 to May 2020
Unemployed persons in March 2020 recorded lesser
numbers compared to unemployed in May 2020.
Analysis of data 1. The highest unemployment rate was 5.3% in May 2020.
While the lowest unemployment rate was 2.9% in 2014.
(Chart 2)
2. The unemployment rate slightly decreased from 3.4% in
2017 to 3.3% in 2018 with a rate difference of 0.1%
1. Many graduates had unrealistic salary expectations even
as they struggled with the basics of the interview process,
adding that the “disparity between the impression they
make at the interview and their salary expectations' were
too jarring to ignore. [Article 3]
1. According to Hariharan employers require much more than
working on set routines or mechanical tasks that have
textbook solutions. [Article 3]
 1. A majority of local graduates lack communication skills
especially mastery of English, analytical skills, technical
skills including problem solving skills. Studies show that
the graduates from international universities have a higher
level of employability compared to the local graduates.
[Article 4]
Conclusion
Conclusion This important issue is often included in government
policies or agendas for year-round parliamentary debates
and discussions. After much discussion and debate, it
seems that there is no best solution to get rid of
unemployment completely.
Recommendation Unemployed graduates can choose to wait for government
initiatives to support them and make them employable or
they can get out of their comfort zone and explore the job
market to find a job that suits their skill sets.
 ELC590
Charts(s) and/or graph(s)

CHART 1: The number of unemployed Malaysians from 1982 to April 2020

Taken from: https://www.theedgemarkets.com/article/malaysia-unemployment-rate-spiked-5-april

CHART 2: The - Malaysia unemployment rate from 2008 to May 2020

Taken from: https://www.theedgemarkets.com/article/malaysia-unemployment-rate-escalates-53-

may
 ELC590

ARTICLE 1
(With student’s notes)

Malaysia unemployment rate escalates to 5.3% in May

Arjuna Chandran Shankar / theedgemarkets.com

July 14, 2020 12:00 pm +08

KUALA LUMPUR (July 14): Malaysia’s unemployment rate increased to 5.3% in May 2020 from
5% in April 2020 as the number of unemployed persons rose by 47,300 to 826,100 individuals,
according to the Statistics Department today. [CREDIBILITY]

In a statement, the department's chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the
monthly change of unemployed persons in May 2020 was very much lower than the change
registered from March to April at 168,300 people.

"The reduction could partly be due to the implementation of numerous stimulus packages
reaching its intended target in addition to more businesses were allowed to operate following
the conditional movement control order (CMCO) during the month.

“The economic indicators for May 2020 showed improvement as compared to April 2020 and these
signalled that the economy is gradually improving. Following this, despite the continuous negative trend
in the labour supply up to May 2020, this situation has improved considerably as compared to April 2020.

"It is expected that as the recovery movement control order (RMCO) took effect on June 10, 2020
onwards, the business conditions would gradually recover as more sectors are allowed to open with strict
standard operating procedures. The implementation may allow businesses to regain their momentum,
while new business opportunities emerge as demand changes amidst the new norm.

"This in turn is expected to retain employment, create new jobs and spur hiring. With this development, in
the short term, labour force situation in June is expected to improve slightly while in the medium term up
to the second half of 2020, further progress is deemed possible. Through various initiatives by the
government, in addition to new creative businesses models innovated, the labour market may find its way
to a recovery path,” he said.

Malaysia's May 2020 labour force rose by 1,800 persons to 15.71 million people from a month earlier,
according to Mohd Uzir.

Year-on-year, the May 2020 labour force recorded an increase of 71,700 persons, he said.

"The labour force participation rate in May 2020 stood at 68.1%, registering a decline of 0.1 percentage
point month-on-month as outflows into outside labour force continued to increase.

"As for outside labour force in May 2020, (the segment) increased 0.6%, recording inflows of 47,000
persons as against April 2020. This brought the total number to 7.39 million persons. The largest share of
43.4% was outside labour force due to housework/family responsibilities, with the number in this
category increasing by 1.0% from April 2020. This was followed by a share of 39.1% who were
schooling," he said.
 ELC590

ARTICLE 2
(With student’s notes)

Malaysia’s April unemployment spikes to 5%, the highest in 30 years

Syahirah Syed Jaafar / theedgemarkets.com

June 15, 2020 22:00 pm +08

KUALA LUMPUR (June 15): Malaysia’s labour market felt the brunt of the movement control order
(MCO) implementation, with unemployment in April spiking to 5%, the highest since 1990. .
[CREDIBILITY]

Economists said it is likely to go higher in the coming months.

Bank Islam Malaysia Bhd chief economist Dr Afzanizam Abdul Rashid and Sunway University
economics professor Dr Yeah Kim Leng, when contacted, both said the rate came in within
expectations.

Afzanizam said the unemployment rate should subside in the coming months as the economy
gradually reopens, following the implementation of the Conditional MCO from May 4 and the
Recovery MCO from June 10.

The statistics department, in a statement today, said the number of unemployed persons went up
48.8% year-on-year (y-o-y) to 778,800 in April.

The labour force grew marginally by 0.6% or 99,100 persons to 15.71 million persons in April 2020,
the lowest growth since September 2014.

In tandem with this, the working population decreased by 156,400 persons (-1.0%) y-o-y to 14.93
million persons.

The department said the most affected employed persons were in the manufacturing and services
sectors, namely accommodation and food & beverage; arts, entertainment & recreation and other
services such as beauty centres and salons.

Yeah said he was expecting the unemployment rate to hover between 5% and 6% during the MCO
period due to the shutdown of the economy which caused many businesses to consolidate their
workforces. [ANALYSIS]

However, he said as businesses are still beginning to adjust to the economic downturn, the
unemployment rate is therefore expected to be worse in the second quarter of the year.

“Although the Recovery MCO allows businesses to operate, the challenge still lies in the hard hit
sectors such as aviation, tourism and small and medium enterprises who will continue the
consolidation of business. Some will also face liquidation even.

“So we expect to see a further increase in unemployment in the coming months to 6% to 7%.
Whether it will stabilise will depend on the economic recovery. Some early indications can be seen
in manufacturing production, which returned to pre-MCO levels,” he told theedgemarkets.com

He added that Malaysia’s unemployment rise cannot be compared with advanced economies that
are facing the epicentre of the virus such as the U.S. and Europe, which saw a double digit rise in
unemployment.

“Job creation in this economy is also on the decline. Demand patterns are also changing, so
businesses will need to adapt to these changes,” he added.

Afzanizam said the government’s wage subsidy programme which aims to incentivise employers to
retain their workers, will help sustain employment.

“Should the reopening of the economy become more consistent, we can expect demand for labour
to gradually rise. Employers would want to retain their workers as finding new employees is equally
difficult. [Furthermore,] companies would gain their economies of scale once the demand start to
picks up,” Afzanizam said.

Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said Malaysia’s labour market in May is expected
to be further affected, following the implementation of the Conditional MCO starting May 5, as
businesses were still not fully in operation.

“During this period, companies will have the tendency to reduce the [number] of employees to ease
the burden of operating costs, despite predicting a decline in their business revenue,” Mohd Uzir
said.

He added that as the Recovery MCO kicked off on June 10, the reactivation of businesses for more
sectors and inter-state travels were allowed, which is predicted to spur businesses and steer the
improvement of the job market, especially in the travel and tourism related industries.
 ELC590

ARTICLE 3
(With student’s notes)

More and more graduates are facing

unemployment in Malaysia
By Vincent D’Silva - February 3, 2020 @ 9:01pm

JOHOR BARU: The unemployment situation among graduates has grown from a matter of gnawing
concern to an issue that leaves furrows in the brows of education planners.

Our 21 public-sector universities and 38 private-sector universities produce something like 51,000
graduates a year, but nearly 60% remain unemployed one year after graduation, according to a
study in 2018 conducted by the Minstry of Education Malaysia's Graduate Tracer Study.

Furthermore, there are more than 5,000 postgraduate students sitting for doctoral programmes each
year, a trend that will bring the total number of Ph.D holders in the country to 60,000 by 2023,
according to statistics disclosed in Parliament in 2016 by the Higher Education ministry.

In recent years, being a university graduate no longer guarantes you a job.[BACKGROUND OF

TOPIC]

As the number of graduates continue to spiral, graduating students are facing frustratingly long
waiting periods for openings amidst a sputtering economy.

Associate Professor Dr. Hariharan N Krishnasamy of Universiti Utara Malaysia said universities and
most educational institutions provide graduates with academic and professional qualifications within
a more stable and predictable environment.

According to Hariharan employers require much more than working on set routines or mechanical
tasks that have textbook solutions. [ANALYSIS]

“There could be situations in which graduates are required to perform tasks that are outside their
area of expertise,” he said.

However, he noted that the widening gap between what the institutions of learning produce and
what industry expects in terms of technical and soft skills had led to more unemployment
challenges.

He said the problem becomes more acute as the number of job seekers is higher than job
vacancies.

He said that graduates need to see the importance of entrepreneurship skills because it opens paths
for career advancement.

“Graduates need to make themselves more marketable and equip themselves with multiple skills
that are not confined to their area of study,” he added.

Chan Seng Chow, chief operating officer at Tasek Maju Realty Sdn Bhd, said there was no simple
solution to mountng graduate unemployment.

He added the issue was complex as different stakeholders had different views on unemployment
and underemployment.
A constant complaint of employers was that fresh graduates do not have the relevant skills and
knowledge.

Furthermore, Chan said many graduates had unrealistic salary expectations even as they struggle
with the basics of the interview process, adding that the “disparity between the impression they
make at the interview and their salary expectations' were too jarring to ignore. [ANALYSIS]

Meanwhile A.D. Menon, senior human resource and training manager at New York Hotel, said some
graduates were willing to settle for lower salaries the job market demanded that they should have
experience before they were considered for a senior post.

Exacerbating the situation was the phenomenon of graduates who go for interviews in Singapore
where they don't obtain the salary levels, they ask but they are realistic enough to settle for less.

They gain experience at their jobs and then become qualified for positions in Malaysia but because
the Singapore dollar is almost three times the value of the Malaysian equivalent, these successful
graduates were disinclined to return home and be useful to the Malaysian economy.
 ARTICLE 4
(With student’s notes)

Unemployment Among Malaysian Graduates, the

Employability Myth
April 7, 2020Article, Blog

Studies show that 1 out of every 5 graduates remain unemployed. 6 months after graduation.
According to a study conducted by Ministry of Education Malaysia’s Graduate Tracer Study, show
that a combined number of 51,000 students from both private and public universities graduate each
year.

Nearly 60% of this graduate remain unemployed one year after graduation, according to a study by
the Ministry of Education Malaysia’s Graduate Tracer Study. The majority or 55% of these
unemployed graduates are degree holders. The reality is being a graduate no longer guarantees
immediate employment.

Feedback from, employers and industry players, there is a general consensus that the gap between
what is being taught in local institutions of higher learning teach and what the industry or job market
expect is widening thus making Malaysian graduates less employable. Graduates from public
universities are not equipped with right level of technical and soft skills to compete in the job market.

There are numerous factors contributing to unemployment among the fresh graduates in Malaysia.
Generally, employers especially in the SME sector have a negative perception towards Malaysian
graduates, where they find the Malaysian graduates tend to lack the skills and knowledge required
by employers. The SME sector is actually the employees 90% of the Malaysian workforce. A
majority of local graduates lack communication skills especially mastery of English, analytical skills,
technical skills including problem solving skills. Studies show that the graduates from international
universities have a higher level of employability compared to the local graduates. [ANALYSIS]

Whilst blaming the local institutions of higher learning for this dilemma is not farfetched but this is
not going to change the situation. The government has in the past initiated numerous initiatives/
programs to help the unemployed graduates and one such was the SLIM programs and (Skim
Latihan Satu Malaysia) aimed at enhancing the employability skills of Malaysian graduates.

One question that needs to raised is, what are the unemployed graduates doing about this situation
rather then complaining. A survey finding shows that a majority of graduates register on online job
sites and wait for potential employers contact them. Some of them have only attended less than 5
interviews in 2 years. The REAL problem is, the most unemployed graduates lack the desire and
drive to succeed or change their lives.[BACKGROUND OF TOPIC]

What needs to Change?

Willingness to Explore New Possibilities: The willingness to get of their comfort zone and
explore new possibilities, not confined to one’s field of study. This is where the non-graduates are
able to compete with graduates, as far as non-graduate is concerned, they have nothing to lose but
continuously make themselves employable in any situation. The favourite term used by recruiters
“the right talent, in the right position” is actually a myth. The reality is you will never get your dream
job or the perfect job. By exploring beyond their chosen field of studies, the chances of an
unemployed graduate getting a suitable job, fitting his/her skill set is quite high.

Learning New Skills. Graduates need to make themselves more marketable and equip themselves
with multiple skills that are not confined to their area of study. The truth is the millennials today are
highly tech savvy regardless of their field of studies, making them highly adaptable to digitalization.
With the emergence of IR 4.0, a key observation by recruitment experts worldwide is the impact of
digitalisation on traditional job role in across all industries sectors. Where there is an emerging high
demand for digital professionals in the following fields: data analytics, cyber security and IT
regulations. This includes HR, logistic and marketing professionals needing to equipped themselves
with digital knowledge and skill sets. Fresh graduates currently find themselves in a situation where
they are under-qualified and inexperienced for many high-skilled jobs, but are overqualified for the
remaining available jobs. So upskilling or embracing new skills and knowledge is critical for fresh
graduates to fulfil their full potential.

Realistic Expectation. Most employers, especially in the SME sector complain, that fresh
graduates are expecting very high starting salaries. The disparity between the poor knowledge and
skill set this graduates present during the job interview and their expected salary is too glaring to
ignore. Graduates are probably under the impression that there is “a fixed minimum salary” for fresh
graduates. The fact is salaries are based on i.e. function of the job, minimum academic qualification
needed, skills set and knowledge required. Including competency and capability needed to drive the
job deliverables. Having a degree may be part of the minimum requirement but experience,
knowledge are critical skills sets are key deciding factors for salary levels. Unemployed graduates
must be willing to settle for lower salaries to start and continuously work on improving knowledge
and experience which would lead to better salaries through career growth.

In conclusion, unemployed graduates can to choose wait for government initiatives to support them
and make them employable or they can get of their comfort zone and explore the job market to find
a job that suit their skill sets.[RECOMMENDATION]
References

1. Syahirah Syed Jaafar. (2020, June 17). Malaysia’s April unemployment spikes to 5%, the
highest in 30 years. The Edge Markets. https://www.theedgemarkets.com/article/malaysia-
unemployment-rate-spiked-5-april
2. D’Silva, V. (2020, February 4). More and more graduates are facing unemployment in
Malaysia. NST Online. https://www.nst.com.my/news/nation/2020/02/562309/more-and-
more-graduates-are-facing-unemployment-
malaysia#:%7E:text=Our%2021%20public%2Dsector%20universities,Education%20Malaysi
a’s%20Graduate%20Tracer%20Study
3. B. (2020, April 7). Unemployment Among Malaysian Graduates, the Employability Myth.
Humanology. http://www.hba.com.my/v2/unemployment-among-malaysian-graduates-the-
employability-myth/
4. Arjuna Chandran Shankar. (2020, July 14). Malaysia unemployment rate escalates to 5.3%
in May. The Edge Markets. https://www.theedgemarkets.com/article/malaysia-
unemployment-rate-escalates-53-may