TheSun 2009-11-02 Page12 Who is Prospering From Jobless Grads

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  • 8/14/2019 TheSun 2009-11-02 Page12 Who is Prospering From Jobless Grads

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    speak up!12 theSun | MONDAY NOVEMBER 2 2009

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    TELLING IT AS IT IS

    by Sonia Randhawa

    MY first weekend at university was exciting. From anarchaic university ceremony, where we were acceptedas undergraduates, my friends and I raced to catcha bus to take us into Lon don for one of the largestdemonstrations that year, against the rise of the BritishNational Party, a far-right party. While the demonstra-tion ended in chaos, I managed to escape the turmoil,and had a generally exhilarating time. I was helping inthe fight against fascism, and it felt great.

    Unfortunately, it wasnt enough. Since the begin-ning of their comeback in the early 1990s, the BNPhas increased in strength in every election. And Britainhas always been less amenable to extreme partiesthan the countries of continental Europe. In Hungary,there are concerns that a far-right party will enter intogovernment in the coming elections, and the righthas been rising across the former Communist states.And while slightly further from power, the 80s saw

    the turning of the fortunesof the far-right in WesternEurope and despite occa-sional setbacks they stillwield disproportionate

    influence.But it was in JulysEuropean Union electionsthat the far-right showedtheir ability to bring invoters. In an election withan abysmally low turnout,the far-right managed toget as much as 17% of thevotes in Austria and theNetherlands, along with

    seats from the UK, Hungary and Slovakia. This meansthey have more money and resources at their disposal,and have a solid foundation on which to build.

    The causes of this rise are being continually ana-lysed, from the failure of the left to engage the workingclass to the pandering of the centre-right to the ex-tremist agenda (particularly in the areas of immigrationand dealing with Islam). Their supporters, at least inthe UK, actively campaign that there is an Islamisationprocess going on in Europe, and that this needs to bebattled. Literally, at times.

    But theres one general trend that is behind it. The

    failure of more centrist parties to meet the challengeswe face today. Since the neo-con agenda of the 1980stook its stranglehold on economic discourse, the gapbetween rich and poor both between and within na-tions has been widening as true of Malaysia as it isthe countries of Europe. According to some sources,even on the right, the majority of people have beengetting poorer, as wages stopped keeping pace withinflation. And things arent looking any brighter forEuropes young. When I was at university in the UK,the only people to drop out were those that, for onereason or another, could not cope with the stress andworkload. For my sisters at university today, their Brit-ish counterparts are finding they cant afford to be atuniversity, the fees and the cost of living conspiring tokeep them from tertiary education. While this couldbe justified if more spending was going to other partsof the education system, that just isnt happening. Asone Guardian editorial noted, the only minority thathas consistently been defended by successive govern-ments is millionaires.

    And the challenges arent going to go away. In De-cember, governments will be meeting in Copenhagento decide how to move forward in the battle againstclimate change. Generally, I dislike using militarymetaphors, but perhaps its the only way to illustratethe severity of the problem. Conservative scientificestimates say we need to cut emissions by 40% rightnow to avoid disaster. More radical estimates abound.And yet, in Europe, home to some of the worlds worstcarbon culprits, debates on restricting immigration andIslamisation are holding sway, climate tucked away ina forgotten percentile of votes.

    The far-right isnt about to take a platform advocat-ing climate justice. But then, neither is anyone else inthe West, with the exception of some of the Greens(and possibly the Swedish Pirate Party, in favour ofInternet file swapping).

    It may seem a long way removed from the poli-ticking of Malaysias parties. But the problems facingEuropes natural parties of government are the sameone our politicians are ignoring. While the rhetoric ofrace, religion and internal bickering pervade our politi-cal landscape, just as the far-right has resurrected themin Europe, the problems we face today, and, worse, theproblems of tomorrow, are becoming increasingly hardto solve.

    Sonia thinks liberty and equality are the only realguarantors of security. Comments: [email protected]

    FreespaceWhere young views rule

    The riseof the right

    Comment by Dr Lim Teck Ghee

    DATUKSeri Najib Razaks 2010Budget is called 1Malaysia,Together we prosper. Beforethe prime ministers multi-million ringgit sloganeering,his predecessor Tun AbdullahAhmad Badawi had introducedthe Prosper theme. Abdul-lah in his Oct 30, 2005 budgetspeech announced Prosperor Projek pembangunan usaha-wan dalam bidang peruncitanto help graduates venture intobusiness. Under Prosper, Per-badanan Usahawan Nasional

    Berhad (PUNB) would finance200 graduates up to RM50,000each; that easily amounts toRM10 million.

    Prosper is an ongoingprogramme and this year, itsattachment training will allowparticipants to intern in PUNBinvestee companies. The costof ensuring this prosperity is,however, not open to publicknowledge.

    Nonetheless, the RM10 mil-lion allocated in AbdullahsBudget 2006 is clearly a dropin the ocean compared to theRM700 million set aside inNajibs March 10 mini-budget.The latters stimulus packageplanned to create 163,000 train-ing and job placement oppor-tunities for retrenched workersand unemployed graduates.

    Of this number, 50,000will be absorbed into the civilservice, adding to its alreadyobese size and bloated payroll.It is important to note thatunder the RM191.5 billion1Malaysia Budget, 72.2% isfor operating expenditure, outof which RM42.2 billion is foremoluments. Furthermore lastmonth, a special financial con-tribution (announced earlier)in the form of a year-end bonustotalling RM400 million will bepaid to public sector employeesfrom Grades 41 to 54.

    Treasuringhuman capital

    It is true that other parts ofthe world also face the problemof workers getting laid off andschool leavers unable to find

    jobs due to the depressed globaleconomy.

    However, Malaysias num-bers are staggering. Based onestimates, about 60,000 gradu-ates might find it difficult toseek employment at all times,said Najib when launching theGraduate Employability Man-agement Scheme (GEMS) onMarch 13.

    GEMS is run by KhazanahNasional Berhad under the ae-gis of the Finance Ministry. Theprecursor to GEMS is the Grad-uate Employability Enhance-ment (GREEN) programme,also tasked to Khazanah inco-operation with GLCs.

    We can safely assume that

    a proportion of these targetedgraduates have not been able tofind work in the fields in whichthey hold the requisite paperqualification. Meanwhile, thegovernment continues to fail toaddress the longstanding lack of

    relevance of the courses taughtin the public universities andthe low standards of graduatesproduced.

    Instead of getting it rightfrom the get-go through struc-tural reform of the higher edu-cation system (and better stillthe entire schooling system),our authorities are attempt-ing to fix the shortcomings ofgraduates who flounder in thecompetitive marketplace bypouring money to correct theirmis-education.

    It is all the more worryingwhen Khazanahs director ofstrategic human capital man-agement Azman Mohd Husseinreveals that the unemployedgraduates have to be givenremedial and practical trainingfor a whole year to improvetheir communication skills andincrease their level of confi-dence.

    And similar to the Prosperscenario, the public are notcognizant of Khazanahs ex-penditure breakdown either.

    Hitting rock bottomsoon?

    Somethings very wrongwhen the situation keeps gettingfrom bad to worse with no lightat the end of the tunnel.

    As early as Sept 25, 2001,then prime minister Tun DrMahathir Mohamad had un-

    veiled an economic stimuluspackage which earmarkedRM150 million for 10,000degree and diploma holders.This allowed them to learn IT,brush up on mathematics andEnglish, in addition to provid-ing RM500 monthly allowanceson a temporary basis until end-2002.

    Temporary appears to havebeen a misplaced optimism be-cause the chronic problem haspersisted for nearly a decadenow.

    Between January 2004 andJune 2005, the governmentshuman resources developmentfund paid out RM265.2 millionin training grants to individuals.From November 2001 until mid-2006, the Graduate TrainingScheme had retrained almost22,000 unemployed graduates,then human resources minister

    Dr Fong Chan Onn disclosed inhis paper Developing humancapital delivered on Aug 21,2006.

    Nonetheless, on Dec 27, 2007a paper presented by the Insti-tute of Islamic Understanding(Ikim) quoted a comment fromthe minister on the inadequatesuccess rate of the retraining.Ikim research officer Nor Harti-ni Saari said roughly RM500million had been expended inretraining.

    Two years down the road on

    Oct 20, 2009, Higher EducationMinister Mohd Khaled Nordinstill talked about RM48 millionspent in university partnershipswith corporations in strategicsectors that could improveinnovation-based industriesand guarantee graduates of jobopportunities.

    Unless our public coffers arereplenished by King Midas, thegovernment may soon go brokefrom the guarantees.

    It is just not sustainableto have the next generationdepend on the nanny state evenafter they have been providedwith ample tertiary educationopportunities, with gener-ous financial assistance andbabysitting after graduation,and eventually bailouts everystep of the way.

    Raiding the publictreasury

    Various ministries andentrepreneurial agencies haveset up their own graduateretraining programme and thismakes the tracking of fiscalallocations difficult.

    For example, the RM7 billionstimulus package revealed byNajib on Nov 4 last year allo-cated RM300 million for a skillstraining programme fund (withfocus on tourism and businessprocess outsourcing sectorsamong others); RM200 millionfor programmes by privatetraining institutions and RM100million for youth programmesat various levels we see herethree intersecting areas.

    Then there is another RM70million to facilitate employ-ment of retrenched employeesand graduates seeking jobs,a special allocation approved

    by the cabinet as announcedby Human Resources MinisterDr S. Subramaniam on Jan 21,2009 in Putrajaya.

    The RM70 million couldwell be a tranche from theRM600 million-infusion forskills training under NajibsRM7 billion package a yearago. Or then again, maybe not... who knows. In any case, theRM600 million was augmentedby another whopping RM700million barely four months laterunder Najibs second stimuluspackage.

    When so many quarters are

    involved in the overlappingeffort between governmentagencies, GLCs, and the privatesector, only the special com-mittees established to managethe funds know the full details.

    Even the auditor-generalsoffice probably does not havethe complete picture of howmuch money is being pouredinto remedying incompetencein the public universities. Andwhat the results have been. If itdoes, it would be very importantfor the public accounts commit-tee to put this information out inthe public domain.

    It may be argued that the factthat these public funds seemto be going towards so manyfacilitators and consultancycompanies shows a prima-rily liberal and laissez-faire

    approach used by the govern-ment to tackle the problem.

    Also of some relief is thatno monopoly seems to haveappeared in cornering themarket.

    The crush of agencies,ministries and private agentsseeking participation in thisfast-growing industry ofenhancing graduate employ-ability should reassure us thatthere are droves of Malaysianswho are driven by patriotism tohelp our hapless graduates. Theunkind among us may suspectthat making a quick buck orrather making buckets of bucks is more the real motivation.

    No solution in sight

    Considering that many ofour young adults are no surerof securing jobs after gradua-tion today than they were in2001 and three prime ministersago, the public and the currentundergraduate populationhave a right to demand a fullaccounting of the huge sums oftaxpayers money spent.

    We also need to know theoutcome of independent impactstudies that can provide empiri-cal data on how effective or in-effective this massive injectionof public funds has been.

    In the parliamentary debatetaking place on the 2010 Budget,there needs to be an explanationon where the total RM1.3 billionappropriated over the recentyear for training and retraining

    purposes went to. And who hasprospered from the money.

    Dr Lim Teck Ghee is director,Centre for Policy Initiatives.Feedback: [email protected].

    Retraining for graduates and youth

    * The outline table above is incomplete as information is unavailable in the public domain

    Who is prospering

    fromjobless grads?

    Unemployed graduates

    Shellsone-litrechallengeis backpg 16