PETALING JAYA: While raising expatriates’ minimum salary threshold might provide more immediate skilled jobs for local graduates, support from the government and companies is key to ensuring local workers are equipped to replace expert expatriates in the long term, say youth leaders.
They said that only through sufficient investment into helping expatriates transfer their skills and knowledge to the local workforce can Malaysia sustainably transition to a high-skilled workforce that is not reliant on foreign expertise.
Muslim Youth Movement of Malaysia (Abim) president Ahmad Fahmi Mohd Samsudin said the new policy must be accompanied by government investment in worker training and career development.
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“The real challenge lies in bridging the gap between local graduates’ potential and readiness, particularly in terms of industry experience, practical skills, exposure to current technologies and professional maturity.
“The government’s goal should not be to merely replace expatriates with local graduates, but to develop a career pathway system that builds human capacity, transfers knowledge and a thoughtful transition grounded in industry realities.
“If implemented well, this has the potential to create more meaningful employment opportunities for Malaysian youth – not only in terms of quantity but also in the quality of work, skills development, career trajectory and leadership building for the future,” he said.
Ahmad Fahmi added that the goal should be to ultimately build a fair, dignified and sustainable employment ecosystem, where local talent is trusted, empowered and positioned as a driver of national development.
“For high-skill sectors such as energy or engineering, a phased transition with the collaboration of the government, industry and educational institutions is crucial to ensure quality, safety, investor confidence and national competitiveness,” he said.
Monash University Student Association president Shoandeep Radhakrishnan gave a similar opinion, adding that the private sector must do its part to ensure the smooth transfer of knowledge from its expatriates to its local graduates.
“We do have local talent, but the gap now is mainly in their senior-level experience and niche skills.
“While youths can take over many roles, companies themselves must invest in training, mentorship and clear succession planning for locals to truly replace expats long term in their company,” he said.
However, he also warned that a hasty, forced transition away from expatriates may prompt some companies to shift roles overseas, depending on the cost and the company’s adaptability.
Former Malaysian Youth Council president Dr Jufitri Joha said this need to support the upskilling and growth of local graduates to prepare them to take over from expatriates is highlighted by the growing participation of graduates in the job market.
“The Statistics Department reports show increasing graduate numbers at 5.98 million in 2024, with an equally growing labour force participation by them at 86%, meaning that there is a stock of highly-educated talent already in or ready to join the workforce.
“The concern now is when it comes to specific skills and experience needed for critical sectors like digital, oil, gas and healthcare, as I believe there is a gap in knowledge and experience between expatriates and local workers in these sectors that needs to be fulfilled,” he said.
To resolve this, he called on local companies to invest in upskilling and training programmes to close any of such skill gaps.
“The government should also make it its policy to reinforce and accelerate this growing trend of highly-educated talent through efforts to help graduates transition into employment more smoothly,” he said.
