Malaysia’s rapid economic growth has brought prosperity, but it has also created a growing skills gap. Our educational system, while commendable in many aspects, isn’t always producing graduates with the skills and knowledge that employers desperately need. This mismatch creates a bottleneck, hindering further economic progress and leaving many young Malaysians struggling to find meaningful employment. It’s a complex issue, but one that demands urgent and collaborative solutions.

The problem isn’t unique to Malaysia. Globally, the World Economic Forum’s Future of Jobs Report consistently highlights the widening skills gap as a major challenge. Automation, artificial intelligence, and rapid technological advancements are transforming industries, requiring workers to adapt and acquire new competencies. In Malaysia, this is reflected in sectors ranging from manufacturing and technology to services and even agriculture. While our universities are producing graduates, many lack the practical skills, digital literacy, and problem-solving abilities that employers seek. A Khazanah Research Institute study has pointed to a mismatch between graduate skills and industry needs, particularly in high-growth sectors. This disconnect not only affects individual career prospects but also impacts the nation’s overall competitiveness.

From an economic perspective, this skills gap translates to lost productivity and slower economic growth. Businesses struggle to find qualified employees, leading to delays in projects and hindering innovation. This can discourage foreign investment and limit Malaysia’s ability to compete in the global market. Socially, it leads to frustration among young graduates who are unable to find jobs commensurate with their education. This can contribute to social unrest and a sense of disillusionment. Educationally, it calls for a critical review of our curriculum, teaching methods, and assessment systems. Politically, it requires strong leadership and a commitment to investing in education and skills development.

Islam emphasizes the pursuit of knowledge and lifelong learning as key components of personal and societal progress. The Prophet Muhammad (peace be upon him) said: “Seeking knowledge is an obligation upon every Muslim.” (Ibn Majah). This hadith highlights that acquiring beneficial knowledge is not merely a choice but a duty. Furthermore, the Quran reminds us of the importance of skill and expertise in various professions. Allah SWT says: “Say, ‘Are those who know equal to those who do not know?'” (Surah Az-Zumar 39:9). This verse stresses the value of knowledge and competence, aligning with the need for an education system that truly prepares individuals for the challenges of the modern workforce.

So, how do we bridge this gap? A multi-pronged approach is essential. Firstly, we need to strengthen industry-academia linkages. This means encouraging greater collaboration between universities and businesses, involving employers in curriculum design, and providing students with more opportunities for internships and apprenticeships. This will ensure that education is relevant to the real world and that students gain practical experience while still in school. Secondly, we need to invest in skills development and lifelong learning. The rapid pace of technological change means that workers need to constantly upgrade their skills. This requires accessible and affordable training programs that cater to the needs of both employed and unemployed individuals. Initiatives like SkillsMalaysia are a step in the right direction, but we need to expand and strengthen such programs.

Thirdly, we need to promote Science, Technology, Engineering, and Mathematics (STEM) education. These fields are crucial for driving innovation and economic growth. We need to inspire young people to pursue careers in STEM by improving the quality of STEM teaching in schools and providing scholarships and financial assistance to students who choose these fields. Fourthly, we need to foster a culture of innovation and entrepreneurship. This means encouraging creativity, problem-solving, and risk-taking among students and providing them with the resources and support they need to start their own businesses. The Prophet Muhammad (peace be upon him) himself was an entrepreneur, and he encouraged his followers to engage in trade and industry with honesty and integrity. He said: “The truthful and honest merchant is with the Prophets, the truthful, and the martyrs.” (Tirmidhi). This reflects how Islam values economic activity that is ethical and contributes to societal development.

Finally, we need to address the issue of graduate employability holistically. This involves not only equipping students with the right skills but also providing them with career guidance, job search skills, and access to job opportunities. Education should go beyond textbooks and exams, it should prepare young people for the realities of the working world, nurturing critical thinking, communication, and adaptability.

Addressing this challenge requires a concerted effort from all stakeholders, including the government, businesses, educational institutions, and individuals. It requires a shift in mindset, a willingness to embrace change, and a long-term commitment to investing in education and skills development. Allah SWT says in the Quran: “Indeed, Allah will not change the condition of a people until they change what is in themselves.” (Surah Ar-Ra’d 13:11). This verse serves as a reminder that meaningful progress requires effort, adaptation, and proactive change.

By working together, we can ensure that Malaysia’s education system prepares our young people for the jobs of the future and contributes to the nation’s continued prosperity. Investing in education is not just an economic necessity, it is a moral obligation to secure a better future for the next generation. Inshaa Allah.
Author : Assoc. Prof. Dr. Khairunneezam Bin Mohd Noor

Senior Lecturer,
Da’wah and Islamic Management Program,
Faculty of Leadership and Management,
Universiti Sains Islam Malaysia (USIM).
Author :En Muhammad Zaki Mustafa
Lecturer,
Communication Program,
Faculty of Leadership and Management,

Universiti Sains Islam Malaysia (USIM).
Author :Dr Muhammad Raqib bin Mohd Sofian
Senior Lecturer
Communication Program,
Faculty of Leadership and Management,

Universiti Sains Islam Malaysia (USIM).