SHAH ALAM, Sept 28 — There is a significant gap between students’ expectations and employers’ assessment of fresh graduates’ workforce readiness, the REHDA Institute Youth Initiative (RIYI) 2026 survey found.
While 41.6 per cent of student respondents considered one to three months as a realistic timeframe for fresh graduates to start making valuable contributions to an organisation, only 2.9 per cent of employers shared the same view.
The survey also found that while 62 per cent of students felt well prepared by their universities, only 32.3 per cent of employers agreed that higher learning institutions adequately prepare graduates for workplace realities.
REHDA Institute chairman Datuk Jeffrey Ng Tiong Lip said university qualifications remained important, but young people also needed to understand how organisations operate, the decision-making process and employers’ expectations.
“This is where RIYI plays an important role in bringing students closer to industry through direct engagement and mentorship, while helping them develop the judgement, resilience, communication and adaptability needed to build sustainable careers,” he said.
REHDA Institute said the findings highlighted the need for stronger university-industry collaboration to expose students to workplace realities earlier, as artificial intelligence (AI) continues to reshape the skills required in the job market.
According to the survey, 76.4 per cent of students said they frequently use AI tools, while 50 per cent of employers expect AI to reduce the number of entry-level positions available over the next three years.
The report also highlighted the importance of digital skills, practical judgement, problem-solving abilities and adaptability.
The survey found that students and employers shared similar views on career development, with 79.4 per cent of employers willing to offer structured training and clear career paths in exchange for a retention commitment, while 67.6 per cent of students said they were willing to accept such an arrangement.
The findings are part of the RIYI 2026 summary report, which compiles feedback from students and fresh graduates from more than 21 universities, as well as employers.
REHDA Institute said the targeted survey provides insights into graduate expectations and employer perspectives but does not represent the national population as a whole.
The RIYI findings are in line with the priorities of the 13th Malaysia Plan (13MP) 2026–2030, which calls for greater alignment between higher education programmes and industry needs, stronger industry involvement in talent development, and closer collaboration among the public sector, industry and academia to equip the workforce with advanced technological skills.
RMK13 also sets a target of 3.6 per cent average annual growth in labour productivity for the 2026–2030 period.
