Youth Unemployment in Malaysia: How NYP Can Overcome Youth Unemployment in Malaysia

Youth Unemployment in Malaysia: How National Youth Policy Can Overcome Youth Unemployment in Malaysia. Definition of Youth in Malaysia. What is Unemployment? National Youth Policy in Malaysia (NYP). How the National Youth Policy Overcome the Challenges of Youth Unemployment? Conclusion

Youth Unemployment in Malaysia

Definition of Youth in Malaysia

According to the National Youth Development Policy of Malaysia, youth refers to those people in Malaysia who are aged between 15 and 40 years old. They also mentioned that the activities and programs for empowering young people in Malaysia will be conducted based on age between 18 and 25 years. According to Aun (2020), the Youth unemployment rate in Sabah is at 14 percent followed by the Kelantan, Kedah, Perak, and Perlis at only 11 percent but this rate is only 8% at Penang. This rate has increased by 10 percent in Kuala Lumpur and Selangor. Malaysia’s youth unemployment has been increased dramatically due to the Covid-19 pandemic in 2020.

What is Unemployment?

Unemployment indicates those people who already have been enough aged to do work, and they are looking for a job as paid employment but the job is not available around them (Yunus, 2007). They are interested to do the job but the government and non-government agencies cannot provide a job for them.

National Youth Policy in Malaysia (NYP):

The national youth policy in Malaysia is one of the great initiatives that the government has taken to develop a harmonious Malaysia where youth will come up with inspiration and moral values (Nor, 2015). In order to empower the young generation, the government has passed the Youth Societies and Youth Development Act 2007 (Act 668). The government and NGOs will work together to help the young generation as well as to reduce the youth unemployment rate (“LAWS OF MALAYSIA”, 2007).

Ahmad (2018) stated that the Government and Non-government organization launches some volunteerism programs such as Tunas Usahawan Belia Bumiputera (TUBE), National Transformation 2050 (TN50), MyCorps, iM4U, and Malaysian Youth Council (MBM) to prepare the young generation to face challenges. Malaysian former Prime Minister Datuk Seri Najib Tun Razak started a sophisticated Youth Policy to develop the youths for gaining a higher income nation (E, 2015). In 2018, the policy has been applied to execute the potentiality of youths for maintaining the country’s excellence.

How the National Youth Policy Overcome the Challenges of Youth Unemployment?

Based on my observation I have outlined three recommendations for the National Youth Policy to overcome the challenges of youth unemployment in Malaysia. Five recommendations are as follows:

  1. Reduce dependence on foreign workers.
  2. Motivate youths to be online freelancers.
  3. Sanction loan for SMM business.
  4. Train the unemployed youths.
  5. Collaboration with agencies.
1. Reduce Dependence on Foreign Workers:

First of all, the National Youth Policy can suggest the Malaysian government to reduce the dependence on foreign workers in every sector in the country. The government should stop recruiting new workers from abroad. In addition to that, they have to give instruction to the company for recruiting Malaysian youth to operate activities rather than assigning foreign workers. The former Malaysian Prime Minister Tun Dr Mahathir Mohamad had expressed dissatisfaction over the dependence of foreign workers. Foreign workers have occupied most of the job sectors in Malaysia. These foreign workers come from Indonesia, Nepal, Bangladesh, Pakistan, and so on. The company will be bound to recruit Malaysian unemployed youths with a high salary when they will not be able to bring foreign workers from abroad.

  1. Motivate Youths to be an Online Freelancer:

Secondly, the NYP has to motivate the young generation to be an online freelancer. The Covid-19 pandemic has taught us a great lesson that employee will not lose their job if they are associated with online freelancing jobs. In this pandemic period, many companies sacked their employees but no online freelancer loses the job. According to the Impact of Covid-19 on jobs (2020), it is estimated that around 50 percent of self-employed lost their job opportunity due to the Covid-19 pandemic. Therefore, it is important to motivate unemployed youth to be an online freelancer to cope with the pandemic. It will allow them to earn huge money from home.

  1. Sanction Loan for SMM Business:

Additionally, the government should sanction the loan for operating social media marketing business by the National Youth Policy. SMM is the abbreviation of the social media marketing that has become one of the most popular marketplaces for buying and selling products and services. Sanctioning loan for the business related to social media marketing will persuade young generation to be an entrepreneur. The youth are highly interested in online and social media, so they will feel interested to do business if they get financial support from the government.

  1. Train Unemployed Youths:

Furthermore, the initiative has to take to train unemployed youths through NYP to make them a skillful citizen. We have to enrich them with technical and vocational knowledge that they can execute in the job sector as well as a personal business. An educated person will find his job automatically when he or she will earn skilled in a specific sector.

  1. Collaboration in Agencies:

Finally, the National Youth Policy has to manage governmental agencies, NGOs, and private organizations for working together to eradicate the high rate of unemployment youth. Here, NYP has to play a vital role to compel all agencies to work hand in hand to decrease the unemployment youth rate in Malaysia.


In short, the amount of unemployed youth in Malaysia has been increased dramatically for the Covid-19 pandemic. Unemployed youths are a burden of a country but it can be turned into a strength by empowering them. The challenges of the unemployed youths can be overcome by executing and following the recommendations driven by the National Youth Policy.


(2015, May 15). PM launches new Malaysia Youth Policy. Borneo Post Online.

Ahmad, M. R. M. (2018, April 6). Developing youths remains a priority. NST Online.


Aun, L. (2020). Unemployment among Malaysia’s Youth: Structural Trends and Current Challenges [Ebook]. Singapore: PDF. Retrieved from

Yunus, F. (2007). Youth Employment and Employability in Malaysia. Malaysian Youth Report: Youth for Nation Building.

Nor, N. A. A. M. (2015). Entrepreneurship development policy in Malaysia. Economic and Social Science Research Centre, MARDI, Persiaran MARDI-UPM, http://ap. fftc. agnet. org/ap_db. php.

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