SHAH ALAM - Malaysians want the upcoming budget to deliver better job prospects through fairer entry-level pay, more internships and stronger vocational training to curb the brain drain.
However, economists say Budget 2026 must go further by embedding industry partnerships, investing in technology and aligning education with national strategies to secure long-term growth.
University student Umairah Zulkefli, 23, said that the government should expand internship and entry-level openings with fair wages for local students and fresh graduates to create better opportunities.
She added that incentives for companies that hire locals instead of foreign workers would also help.
“At the same time, it is well known that many Malaysians prefer working abroad because salaries are higher and career opportunities are better.
“Jobs like translators, nurses, engineers and IT specialists are in strong demand overseas, and often offer more attractive packages than in Malaysia.
“Budget 2026 should address this brain drain by encouraging industries to pay competitive wages, improve working conditions and create more specialised career pathways,” she told Sinar Daily.
Commenting on whether skills training and vocational education should receive more funding, Umairah agreed and added that not all Malaysians could afford to pursue tertiary studies.
“Some struggle even to complete high school due to financial barriers. By strengthening vocational pathways, the government can ensure that these citizens still have access to practical skills training,” she said.
O2 Research Head Anis Anwar Suhaimi said that Budget 2026 must prioritise the structural development of local talent as a national economic strategy, not merely as a labour market issue to reduce dependence on foreign labour while building a high-value economy.
He added that this requires long-term coordination between education, industry and government.
“One of the clearest examples comes from Japan. Unlike systems that treat internships or industry training as optional, Japan institutionalises these programmes through formalised, government-supported partnerships between universities and companies,” he said.
Anis said that their Keizai Doyukai (Japan Association of Corporate Executives) played a key role in aligning graduate competencies with industry needs, while ministries like Economy, Trade and Industry Ministry and Education, Culture, Sports, Science and Technology Ministry provide frameworks that ensure on-the-job training, dual appointments, and technology transfer.
“Japanese universities routinely embed industry placements into their degree structures, and many engineers or researchers hold cross-appointments between academia and private enterprise.
“This creates a continuous pipeline of local talent who are industry-ready from the start and who can evolve with the sector,” he further emphasised.
He also added that Malaysia could adapt this model by embedding semester-long industrial co-ops within university curriculums, funding joint lecturer–practitioner programmes and offering tax incentives to companies that host structured, skill-building internships for Malaysian students.
“The goal is to make the development of local talent not only cheaper, but also more efficient and attractive than hiring low-skilled foreign workers,” he said.
Meanwhile, Universiti Kuala Lumpur (UniKL) Business School economist Associate Professor Dr Aimi Zulhazmi Abdul Rashid said that Budget 2026 must be aligned with 13th Malaysia Plan (13MP), especially on technology as the main catalyst to uplift the skills of the Malaysian workforce.
He said that incentives like tax exemptions, specific budget to assist in commercialisations of Research and Development (R&D) must be provided to Micro, Small and Medium Enterprises (MSMEs).
“More inventors and scientists must be developed from primary school levels to the tertiary and beyond.
“Developed nations like South Korea allocated 5 per cent of their Gross Domestic Product (GDP) for R&D budget, which Malaysia can learn from,” he said.