The government should consider providing an additional fiscal incentive for companies to equip young people with the skills required for the job market, an economist said.
Dr Yeah Kim Leng, Professor of Economics at Sunway University Business School said most youths did not have the right skills or expertise for the jobs, causing huge unemployment among them.
"Some incentives can be designed to actually encourage firms to use our youths as one of the sources in expanding their workforce through appropriate training.
"Wide-ranging skills and expertise are needed in order for them to work productively in the industry," he told reporters on the sidelines of a half-day forum on the Malaysian economy here, Friday.
Yeah, who is also a member of the Bank Negara Malaysia Monetary Policy Committee, said youth unemployment was on the rise not only in highly-skilled jobs, but also in low-skilled jobs, which resulted in the influx of foreign labour in the country.
"The influx of foreign labour is (also) one of the causes of 'depressed wages', mainly in the low-skill labour category. It has been depressed due to the easy availability of foreign labour which affected mostly the low-income group.
"There are merits in terms of dependency on foreign labour for the performance of the 3D (dirty, dangerous and demeaning) jobs. We need that," he added.
Yeah said the problem began affecting youths as foreign workers gradually expanded into other areas, especially in supervisory jobs and the service sector, which should cater to unskilled Malaysians without high qualifications.
"So, in a way, opportunities for them (local unskilled workers) have been taken away by the unskilled foreign labour.
"If they (local unskilled workers) are not be able to up skill (themselves), they will be competing with the cheap foreign labour and their wages will be stagnant," he said.
In order to stem the flow of foreign labour, Yeah said automation was strongly needed as part and parcel of the structure upgrading as it required higher skilled employees.
Yeah said the influx of foreign labour also weaken the ringgit to a certain extend as they sent money from salaries back to their home, causing huge outflow of local currency.
While the minimum wage enforced by the government (on July 1, 2016) has boosted the income of Malaysian workers, it has also benefited foreign workers, he added.
For businesses and industries, he said the minimum wage enforcement had indirectly put pressure in terms of their operation expenditure to upgrade and increase productivity.
Although the country still needs foreign labour, their number should be capped, he said, adding that businesses and industries should spend more on technology, instead of resorting to cheap foreign labour. -- Bernama
Bernama
Fri Mar 24 2017
Youth unemployment is on the rise not only in highly-skilled jobs, but also in low-skilled jobs, which resulted in the influx of foreign labour in the country. - Filepic
Iran's supreme leader says Hamas leader's death will not halt 'Axis of Resistance'
The "Axis of Resistance", built up with years of Iranian support, includes Hamas, the Lebanese Hezbollah group, the Houthi movement in Yemen, and various Shi'ite groups in Iraq and Syria.
Putin says Russia willing to seek compromises between Iran and Israel
Russia is ready to help seek compromises between arch-foes Israel and Iran, President Vladimir Putin said on Friday, saying these would be difficult but possible.
What proposals will Russia push at the BRICS summit?
The proposal is also to establish a BRICS reinsurance company to allow uninterrupted shipment of goods and key commodities between members.
Indonesia's free meals plan in the spotlight as Prabowo readies for office
Prabowo calls the programme one of the main drivers of economic growth, eventually set to add an estimated 2.5 million jobs.
Astro AWANI's revamped English news website, AWANI International, launches on Oct 21
Astro AWANI's revamped English platform delivers in-depth global news and expert analysis to keep you informed on key developments.
Israeli strikes kill 33 people in Jabalia refugee camp in Gaza, medics say
Residents of Jabalia said Israeli tanks had reached the heart of the camp after pushing through suburbs and residential districts.
Liam Payne's ex-partner calls for media restraint after 'painful' death
Cheryl Tweedy used her statement to urge the media to remember they had a seven-year-old son, Bear, who could read the reports.
Analysts: Indonesia's strong MoF leadership team to boost investor confidence
Sri Mulyani Indrawati as head of Indonesia's Ministry of Finance is expected to instil confidence among investors.
Biden offers both a carrot and a stick to Israel as his term nears an end
Israel has frequently resisted US advice and has caused political difficulties for the Biden administration.
Putin says BRICS will generate most of global economic growth
Russian President Vladimir Putin will host a summit of the group in the city of Kazan on Oct. 22-24.
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.
NFOF will be operational in November 2024 with funding of RM1 bil
PM Anwar Ibrahim said NFOF will support venture capital fund managers to invest in startup companies with RM300 million set aside for 2025.