This document summarizes the findings of a study on graduate employability in Malaysia. The study examined perceptions of various stakeholders including employers, students, parents, and university staff. Key findings include: 1) Employers placed more emphasis on soft skills like language and communication abilities than hard skills. They viewed graduates of international programs and foreign universities as strongest in these areas. 2) Both students and parents viewed qualifications from foreign universities and international branch campuses as enhancing employment prospects the most. University management acknowledged these perceptions but emphasized internationalization of curriculum over job prospects. 3) There were discrepancies between perceptions of students, who felt international qualifications made getting a job easy, versus university management, who disagreed and felt specialized knowledge was

1. TNE GRADUATE
EMPLOYABILITY
STUDY: AN ANALYSIS
OF GRADUATE
EMPLOYMENT TRENDS
IN MALAYSIA
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2. OBJECTIVES
1 To identify employer perceptions of national and TNE qualifications.
2. to establish if any, variations in the perception between national,
UK and other TNE graduates.
3. to identify employers’ views of characteristics of graduates that
enhances employability.
4. to compare parents’ perception of TNE to that of the employers’
5. Identify skills that are lacking and the strengths and gaps among the
various types of graduates
6. identify how policies to develop soft-skills affect TNE providers
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3. CONTEXT
• In Malaysia, as with most developing and middle-income nations, the
economy and labour market fail to keep pace with the rapid transformation of
the higher education sector.
• The unemployment rate of fresh graduates in Malaysia, six months post
completion of their degree is in the range of 25-30 per cent. One reason often
cited is the mismatch between skills required in the job and the existing
profiles of graduates.
• General unemployment rate in Malaysia is below 4% -
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4. METHODOLOGY
• The study sample consisted of major stakeholders involved in the issue of
graduate employment and employability, namely, employers (Phase I ),
students and parents (Phase II ) and senior management, academic staff and
policy makers (Phase III) .
• In addition to initial desk research of documentary and literature analysis, this
study adopted a mixed research methodology using questionnaire surveys,
interviews, and case studies.
• The respondents were employers, students, parents, higher education
institutions’ management and academic staff. A range of employment sectors
was targeted, for example, consumer products, industrial products,
construction, trading/service, infrastructure, finance and technology
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S URV E Y
I NTE RV I EW S
102
16
358
40
31
0
28
7
132
10
0
3
Employers Students
Parents Senior Management
Academic Staff Policy Makers

6. PHASE I : EMPLOYABILITY OF
GRADUATES IN MALAYSIA : THE
PERCEPTIONS OF SELECTED
EMPLOYERS
• Employers place greater emphasis on soft skills as opposed to hard skills.
These soft skills include, very importantly, language (English) and
communications skills.
• career prospects of TNE students appear to be good compared to other types
of graduates
• While foreign graduates are top in language, communication skills and
confidence, local TNE university graduates are prepared to work hard,
committed and are familiar with the local business environment
• 60% of employers suggested that a TNE qualification would have a positive
impact on a graduates career prospects. 76% of students thought
employment prospects would be enhanced
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7. PHASE I : EMPLOYABILITY OF
GRADUATES IN MALAYSIA : THE
PERCEPTIONS OF SELECTED
EMPLOYERS
• A striking finding is that of graduates of local public universities falling short,
sometimes far short, of their foreign-educated, TNE educated, and even local
private institutions-educated peers in terms of soft skills, especially in the
command of English. This language deficiency, in turn, affects adversely the
confidence of graduates.
• Employers had expressed their preference for, in descending order, foreign
graduates, graduates of foreign branch campuses, local private university
college and university college graduates, graduates from local public
universities
• This finding should not lead to a rush for judgment that all foreign-educated
are superior to local graduates in terms of employability. Employers are well
aware that each type of graduate brings specific strengths to the organizations
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8. PHASE II: EMPLOYABILITY OF
GRADUATES IN MALAYSIA: THE
PERCEPTIONS OF SELECTED
STUDENTS AND PARENTS
• Like the majority of employers in Phase I, students and parents place a
premium on Transnational Education (TNE) programmes for their international
recognition, being well regarded and awarding degrees valued by employers.
• Similarly, they expressed the view that qualifications obtained from
international branch campuses in Malaysia and local private universities with
TNE elements in their programmes will enhance employment opportunities of
their graduates.
• they placed a high value on knowledge, soft skills like the English language
and hard skills such as information technology besides specific competencies.
This finding, too, largely reflects that of the employers in Phase I.
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9. PHASE II: EMPLOYABILITY OF
GRADUATES IN MALAYSIA: THE
PERCEPTIONS OF SELECTED
STUDENTS AND PARENTS
Students placed emphasis on the value of a truly international degree with a
decreasing value as teaching and learning processes become more ‘local’.
About 85% and 84% of the respondents considered that qualifications from
foreign universities outside Malaysia and international branch campuses in
Malaysia respectively would ‘very likely’ and ‘likely’ enhance employment
opportunities.
It should be noted, however, that while the perceptions of employability may fall
the more local an institution becomes, there is still a strong perception and
expectation of employment given the TNE focus or activities present within these
institutions.
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10. PHASE II: EMPLOYABILITY OF
GRADUATES IN MALAYSIA: THE
PERCEPTIONS OF SELECTED
STUDENTS AND PARENTS
• both students and parents agree that reputation and branding as well as
global recognition are pull factors in the choice of institutions to study in
• Students suggested that more could be done to prepare students for the world
of work in relation to access to local and international employers, presentation
of CVs and interview techniques, and engagement with alumni.
• This dilemma, according to most, is related to teaching methodology;
focusing on theory rather than practice, and the emphasis to pass
examinations.
• Many also felt that internships can bridge the gap between class teaching and
the real world of work
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11. PHASE III EMPLOYABILITY OF
GRADUATES IN MALAYSIA: THE
PERCEPTIONS OF SELECTED SENIOR
MANAGEMENT AND ACADEMIC STAFF
• Senior management recognises the fact that student preference is to
participate in TNE programmes for the following reasons:
1 it enhances internationalisation of curriculum (94%),
2 employers place a premium on the ability of graduate employees who are
proficient in English (82%),
3 it costs less in tuition fees and other expenses than going abroad (72%) 4
it provides greater international exposure than a local home-grown
qualification (70%).
• While senior management and students/parents share the utility function of
TNE programmes, as indicated above, there seems to be some shades of
difference in emphasis as to what TNE can achieve
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12. SENIOR MANAGEMENT CONCERNS
70% of the senior management strongly disagreed/disagreed that TNE
programmes develop critical thinking much more than local programmes
The main reason cited was that TNE classes are taught mainly by local
academicians who tend to emphasise theory rather than practice and knowledge
application.
This has been commented upon by in phase I
Critical thinking and the ability to think outside the box are attributes that
employers desire in the recruitment of graduates.
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13. PERCEPTIONS OF SENIOR
MANAGEMENT ON THE LIKELIHOOD
OF EMPLOYMENT FROM DIFFERENT
TYPES OF HEI
• .
• There is a clear indication that graduates from private HEIs are more likely to
be employed than those from public universities.
• 96% of the respondents considered that qualifications from international
branch campus and local private universities would very likely/likely enhance
employment opportunities.
• These were followed by foreign universities outside Malaysia and local private
university colleges, each scoring with 92% of the respondents.
• local public universities and local private colleges scored 88% each
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14. SHADES OF DIFFERENCE
• More than half of the student respondents in Phase II of this study expressed
the opinion that as a TNE graduate it is easy to get a job upon graduation .
The sample of parents agreed
• In contrast, as high a 70% of the senior management disagreed
strongly/disagreed that on graduation with a TNE qualification, jobs were easy
to obtain with a salary higher than that of home-grown programmes.
• Their perception was that internationalisation of curriculum and teaching staff
are aspects of TNE programmes which can enhance employment
opportunities and job prospects.
• Students feel that institutions do not place as much importance on developing
the person as the provision of knowledge,. This goes against what was
established in the Phase I study where employers felt that specialised
knowledge can be developed later on and that institutions should focus on
developing the person with the right aptitude and attitude for work
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15. CHOICE OF INSTITUTIONS FOR
EMPLOYMENT
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0
50
100
150
200
250
300
350
400
Public Universities Private Universities Private University
Colleges
Private Colleges Foreign Branch
Campus
Foreign Universities
Overseas
Employers Students Parents Senior Management Academic Staff

16. WHY CHOOSE TNE?
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0 50 100 150 200 250 300 350 400
cheaper than going abroad
easier to get a job
earn a higher salary
provides greater international exposure
programme available in TNE mode only
employers place a premium on proficiency in
spoken and written English
Students Parents Sr Management Academic Staff

17. • https://www.britishcouncil.org/education/ihe/
knowledge-centre
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