Malaysia needs job creators, but they are not made overnight — Nor Farah Hanis Zainun

OCTOBER 2 — University graduations in Malaysia often conclude with a common question: "So, what are you going to do now?" Traditionally, graduates have expected to find conventional jobs; however, a shift is occurring. Today, graduates are being encouraged not just to seek employment but to become job creators by starting businesses and fostering innovation.

This aspiration aligns with Malaysia's goal for a higher-value, more entrepreneurial economy. Nevertheless, becoming a job creator is not as simple as telling graduates to become entrepreneurs. It requires development and nurturing of entrepreneurial skills.

Malaysia is making progress in this direction through the Higher Education Ministry's Entrepreneurship Action Plan for higher education institutions from 2026 to 2030. This plan aims to cultivate student entrepreneurs who can eventually become job creators and industry builders. The change in perspective is crucial as it positions entrepreneurship as a part of Malaysia's human-capital development, rather than merely an alternative for graduates unable to secure standard employment.

While the employment rate among graduates remains high, with 86.4% of employed graduates being employees in 2024, there is an increase in the number of self-employed graduates (7.2%) and employers (5.6%). These figures indicate progress, yet they also highlight the importance of distinguishing between "job seeker" and "job creator."

Conventional employment is not a failure of entrepreneurial ambition for everyone; it can serve as a stepping stone for some future founders to gain valuable experience. Time spent in organizations offers invaluable lessons about customer behavior, team dynamics, financial management, and other aspects that are challenging to learn in a classroom setting.

However, experience can come from various sources such as internships, freelancing, family businesses, mentorship, university projects, community initiatives, or running a small business alongside studies. The key is that entrepreneurship requires capability, not just courage. Encouraging young people to take risks is beneficial, but sustainable entrepreneurship demands knowledge, financial acumen, leadership skills, and the ability to make informed decisions under changing circumstances.

Becoming an employer involves additional responsibilities, including managing salaries, recruiting staff, handling performance issues, retaining customers, understanding regulations, and making difficult decisions during challenging times. For Malaysia, where micro, small, and medium enterprises account for 48.7% of total employment in 2025, developing capable entrepreneurs is crucial not only for job creation but also for overall national development.

Universities play a vital role in entrepreneurship development, but the process extends beyond business plans, pitching competitions, or compulsory entrepreneurship courses. Aspiring founders need practical exposure to real customers, constraints, and consequences. The industry, mentors, financial institutions, government agencies, and established businesses collectively form a supportive ecosystem for developing entrepreneurs.

Ultimately, the goal should be to help graduates build the necessary capabilities to sustain and grow their businesses while creating opportunities for others. The conversation around job creation needs to shift from merely encouraging young people to "start something" to assisting them in acquiring the skills required to nurture their ventures, allowing them to contribute significantly to the economy and society.