Kota Kinabalu: Graduate unemployment in Sabah has fallen to 7.6 per cent, but nearly half of the State’s workforce remains employed in jobs that do not match their qualifications, according to Federation of Indian Chambers of Commerce and Industry Malaysia (FICCI Malaysia) Vice President S. Chandra Segar.
Describing the improvement as encouraging, Chandra said more coordinated action is needed to ensure the gains translate into sustainable workforce growth.
“All agencies and officers responsible must take ownership and accountability to ensure programmes are effectively implemented and aligned with industry needs,” said the Sabah MIC Chairman in a statement.
Chandra, who has 19 years of experience as a Technical and Vocational Education and Training (TVET) consultant, said human capital development cannot be achieved in isolation.
“It requires a unified ecosystem where policymakers, educators and industry leaders work towards the same goals,” he said.
He noted that Sabah’s overall unemployment rate, estimated at between 5.4 and 5.7 per cent, remains above the national average despite continued labour shortages across various industries.
“This points to a structural imbalance in the labour market rather than simply a shortage of workers,” he said.
Chandra said TVET graduates remain the most job-ready segment of the workforce, with employability rates exceeding 95 per cent.
“Strengthening TVET is not just an education policy but a strategic investment in the state’s human capital development,” he said.
He added that aligning training programmes with industry demand and expanding access through public-private partnerships would better position Sabah to meet workforce requirements over the next decade.
Chandra also called on the state government to increase funding for TVET and expand programmes in key sectors, including oil and gas, construction, manufacturing, agriculture and the digital economy.
“Future allocations should focus not only on increasing student enrolment but also on designing training programmes that closely match industry requirements,” he said.
He also urged government-linked companies, multinational corporations and private sector employers to work more closely with training institutions by offering apprenticeships, scholarships and employment opportunities.
“Failure to act decisively may result in continued labour shortages despite a growing number of graduates, ultimately constraining the state’s economic growth and competitiveness,” he said.
Chandra also urged parents to play a more active role in guiding their children towards careers with strong employment prospects rather than focusing solely on academic performance.
“Academic success should be complemented by career awareness. Students need early exposure to industry demands so they can make informed decisions about their education,” he said.
He said many students continue to choose courses based on perception rather than labour market realities, contributing to the mismatch between qualifications and available employment opportunities in Sabah.
“Career guidance should begin at home, with parents acting as key partners in helping students navigate an increasingly complex education and employment landscape.
“Parents should view TVET as an equally valuable and practical pathway to stable, well-paying careers rather than as a secondary option to university education,” he said.
Chandra said that by balancing academic aspirations with informed career planning, families could play a significant role in developing a future workforce that meets Sabah’s economic needs.
