PETALING JAYA: Malaysia’s progress is usually measured in headline figures: GDP growth, foreign direct investment and global competitiveness. In June 2026, the country climbed eight places to 15th in the IMD World Competitiveness Ranking, underscoring its growing global standing.
Yet headline indicators do not always reflect the lived reality of Malaysians. While the economy continues to grow and attract investment, many still face challenges in securing quality jobs, progressing to higher incomes and moving up the economic ladder.
One manifestation of the challenge is graduate underemployment. A degree or vocational qualification does not automatically lead to a suitable job or higher income, leaving many young Malaysians struggling to secure opportunities that match their qualifications and aspirations.
Under the Ekonomi Madani framework, “raising the floor” is therefore not simply about getting more people into jobs, but ensuring those jobs offer better wages, greater security and a clearer path upwards.
“If productivity is soaring and companies are making billions in profits, but workers are still earning RM1,700, then we have not raised the floor,” Prime Minister Anwar Ibrahim said in late September.
Budget 2027 responds by raising the minimum wage to RM2,000 from June 2027 and setting RM2,500 as the starting wage for graduates and semi-skilled jobs. But wage measures must be matched by pathways that help young people secure and sustain quality employment.
For Malaysia’s sovereign wealth fund, Khazanah, national progress is therefore not measured by financial returns alone. Its work runs on two fronts: strengthening strategic sectors and Malaysian companies to raise the ceiling of the economy, while building the capabilities, businesses and talent that raise the floor for the rakyat.
“Khazanah’s unique mandate enables us to deliver sustainable commercial returns while advancing Malaysia’s developmental priorities. These objectives reinforce each other: strong investments allow us to recycle capital into strategic sectors, talent and enterprise development, creating long-term economic value and broader opportunities for Malaysians.
“As we catalyse priority ecosystems and strengthen the economy, we must deepen the talent pools that will sustain their growth. This means building capabilities in tandem with investment, so that Malaysians are equipped to participate in, lead and benefit from the industries of the future,”, said Khazanah Nasional Berhad managing director Amirul Feisal Wan Zahir.
Moving up the career ladder
Khazanah’s talent development efforts span different stages of a Malaysian’s career.
The Khazanah graduate trainee programme helps fresh graduates build strong professional foundations through structured training and on-the-job experience, while its residency programme gives Malaysian professionals and creative practitioners access to specialised learning, international perspectives and professional networks that can benefit their respective fields at home.
At a broader level, K-Youth addresses the mismatch between the qualifications young Malaysians acquire and the skills, experience and industry exposure employers require.
Khazanah’s employability and talent development programme works with industry to provide job-specific training, practical workplace experience and pathways into employment in high-growth sectors such as semiconductors, aviation and digital technology.
Under its Accelerate track, 85% of participants secured jobs within three months of completing the programme in 2025, while 81% remained employed in 2026.
Three-quarters of trainees come from B40 households, and half of those surveyed now earn between RM3,000 and RM4,000 a month. Since 2023, more than 35,000 young Malaysians have benefited from Khazanah’s programmes, complementing the government’s Bakat Madani initiative.
Talent development, however, must be matched by companies able to create quality jobs. Entrepreneurs and mid-tier firms need more than financing to grow, innovate and compete; they also require the capabilities, networks and expertise to scale.
Through Dana Impak, Khazanah combines capital with capacity building to strengthen enterprises, develop Malaysian capabilities and generate employment in strategic sectors.
Tailored initiatives such as the mid‑tier growth innovation programme and Elevate in collaboration with Securities Commission Malaysia, have supported 54 companies to strengthen their growth capabilities.
Budget 2027 builds on this effort by expanding Dana Ciptawan, a fund for Bumiputera and Malaysian mid-tier companies, to RM250 million in collaboration with Teraju.
Upskilling Malaysians works best when there are high-value companies ready to employ them. Malaysian semiconductor design company SkyeChip shows how enterprise and talent development can reinforce each other.
Supported by Dana Impak, it has built a team of more than 300 designers, invested substantially in research and development, and employed K-Youth trainees, demonstrating how stronger companies can create better opportunities while stronger talent enables those companies to grow.
These efforts are underpinned by a longer talent pipeline that begins well before a young Malaysian enters the workforce. Since 2006, Yayasan Khazanah has supported more than 1,700 scholars, 71.8% of whom are from Bumiputera backgrounds, pairing academic funding with leadership development, mentorship and industry attachments.
Raising the floor and raising the ceiling are mutually reinforcing: talent, enterprises, capital and institutions must work together so that Malaysia’s progress is felt in the everyday lives of the rakyat, and one opportunity creates the next.
“For more than two decades, Khazanah has believed that a nation's greatest asset is its people. As Malaysia seeks to move into more knowledge-intensive, innovation-driven and higher-value activities, sustained investment in talent becomes a strategic imperative.
“Our aim is not simply to prepare Malaysians for the jobs of today, but to equip them to create, lead and compete in the industries of tomorrow.
“By building stronger talent pipelines, capabilities and institutions, we are helping to strengthen Malaysia's competitiveness, deepen its economic complexity and create more pathways for Malaysians to succeed.
“Ultimately, raising the floor and raising the ceiling begins with investing in the people who will build the nation's future,” said Amirul Feisal.