The Leaning Tower of PISA

 

The latest dismal performance of the country’s 15-year-olds in the 2025 Programme for International Student Assessment (Pisa) results, released by the Organisation for Economic Cooperation and Development (OECD) recently, reinforces this concern. 

The Pisa results show that the performance of Malaysia’s 15-year-olds has not improved and, in some areas, has regressed. Average scores in 2025 were lower than in 2022 for mathematics, while remaining broadly similar for reading and science – helped only by a decline in the overall OECD average. This is particularly concerning given the weak baseline in 2022, when scores in all three areas of assessment – mathematics, reading and science – fell below the global average, marking one of the most significant declines globally. Compared with 2018, student performance has deteriorated across all three areas.

 

Source:https://www.wikiimpact.com 

There is a tendency, rightly or wrongly, to draw comparisons between the number of students achieving “A” grades in the Sijil Pelajaran Malaysia (SPM) and Pisa outcomes. However, the two are not directly comparable. The SPM is a comprehensive national examination covering all 17-year-olds, whereas Pisa assesses a randomly selected sample of 15-year-olds. 

Those Malaysians who were in secondary school in the 1970s to the 1990s will point to what they perceive as grade inflation in the SPM examination. They may recall that it was much harder to score “A” grades then, with outstanding results typically comprising five to seven As – and only a small number of students achieving them. Today, such top scorers’ number in the thousands. 

In 2025, a total of 13,779 candidates, or 3.55% of SPM candidates, obtained “A” grades in all subjects, slightly lower than in 2024. Interestingly, the national average grade also improved to 4.42 last year from 4.49 in 2024 (the lower the score, the better the performance), while 94.3% of candidates qualified for certification. This has led many to question the apparent disconnect between SPM results and Pisa outcomes, as well as the broader quality of the education system, including at the tertiary level. 

Concerns have been raised about graduates’ proficiency in English, critical thinking abilities and overall aptitude. More worrying is the rise in the proportion of low-performing students.

According to the OECD, the share of students scoring below minimum proficiency levels has increased by 24 percentage points in mathematics, and by 10 percentage points each in reading and science. Overall, Malaysian students continue to score below the OECD average in mathematics, reading and science. In computational problem-solving, their mean score also falls short of the OECD average. Drilling down further, the scores tell a woeful tale, with Malaysian students’ proficiency continuing to lag behind the OECD average. 

Pisa measures performance across six proficiency levels, with higher levels indicating stronger mastery. Top performers are those in levels 5 and 6. Only 54% of Malaysian students attained level 2 or higher in science, compared with the OECD average of 74%. Just 0.5% reached levels 5 or 6, far below the OECD average of 7%. So, it can be assumed that the young scientists at the recent science challenge final represent this small top tier. The gap is even wider in mathematics. Only 35% of Malaysian students reached at least level 2 proficiency, compared with 65% across the OECD. A mere 0.6% were top performers, versus 8% for the OECD. 

Regionally, Malaysia also trails significantly in producing top performers. China bags the top spot with 54%, followed by Singapore (37%), Taiwan (32%), Macao (29%), South Korea (23%), Japan (22%) and Hong Kong (21%). 

Reading outcomes tell a similar story. Only 44% of Malaysian students achieved level 2 or higher, compared with the OECD average of 69%, while almost no students reached level 5 or above, against an OECD average of 6%. Many students still face difficulties with reading comprehension – the very foundation of all learning. 

Greater accountability for education spending is, therefore, essential. More importantly, it is time to question whether the Malaysia Education Blueprint 2013-2025 remains fit for purpose, or whether a return to fundamentals is needed – starting with the 3Rs of education (reading, writing and arithmetic). And hopefully we have a new, dynamic and pragmatic Minister of Education. 

Reference:

Malaysia’s learning curve is bending down, Fintan Ng, The Star, 12 Sep 2026

7 Reasons Why Malaysian Fresh Graduates are Unemployed

 

The Ministry of Higher Education (MOHE) estimated that the total unemployment among fresh graduates in Malaysia amounted to 116,161 people or 20% of the total graduating population in 2020. In other words, 1 in 5 fresh graduates struggles with unemployment today, even after investing a high amount of money and time into obtaining a bachelor’s degree.

 

According to DOSM, Malaysia faces a severe graduate underemployment crisis despite maintaining a low headline unemployment rate of around 2.9% to 3.0%.

 

Source: https://en.namu.wiki

 

·         Unemployment Rate: Overall national unemployment sits at roughly 2.9%–3.0%, masking the severity of youth and graduate job quality.

·             Skill-Related Underemployment: According to the Department of Statistics Malaysia (DOSM) data, nearly 1.96 million tertiary-educated Malaysians (about 35.5% of degree and diploma holders) are stuck in semi-skilled or low-skilled jobs.

·        The Wage Penalty: Underemployed tertiary graduates in Malaysia face a wage penalty of up to 49.3% compared to those in genuinely high-skilled roles.

 

Should we just blame it on the Covid-19 pandemic? Or are there fundamental issues that lower Malaysian fresh graduates’ employability? 

 

1.      Poor Command of English

 

English is still the primary business language in Malaysia. Being proficient in English is no longer an advantage, but a necessity to communicate effectively. However, many Malaysian fresh graduates struggle to communicate in English fluently.

 

Since job interviews are mostly conducted in English, many graduates fail in the first stage of a job application as poor command of English affects their self-confidence during the interview sessions.

 

2.      Lack Of Technical and Soft Skills

 

Today, fresh graduates are expected to be fully equipped with the right skills and knowledge to instantly bring value to companies, as companies are not keen to train employees from scratch. According to employers and industry players, most Malaysian fresh graduates lack the technical, problem solving and soft skills that employers require to compete for jobs in Malaysia.

 

As a result, the job market is highly competitive as only a handful of talents possess the right skill sets to get hired.

 

3.      Picky About the Job Or Company

 

Compared to the previous generations, most fresh graduates today would not settle for a job for the sake of it. Today, candidates are not only looking for a higher salary but the entire compensation package as well, such as allowances and non-monetary benefits.

 

Besides that, Malaysian fresh graduates place much emphasis on company culture, work-life balance and more. However, not all companies offer these benefits and only the best and rarest talents are hired instead while others stay unemployed.

 

4.      Unrealistic Salary and Benefits Expectations

 

Malaysian fresh graduates are well-known for having an entitled attitude whilst job hunting. This is reflected by the fact that fresh graduates are expecting much higher starting salaries and benefits compared to the industry standards.

 

Employers are often shocked by fresh graduates’ unrealistic expectations, considering that they have lower knowledge and expertise.

 

For those that are not willing to settle for lower salaries, it pushes employers to hire other graduates who are willing to accept the market rate and have a good intention of learning.

 

5.      Lack Of Digital Skills

 

The world is experiencing the age of digitalisation and automation. As such, digital skills such as digital marketing, big data analytics and e-commerce are some of the most highly sought-after skills in the job market.

While digitalisation created new jobs in Malaysia, most Malaysian fresh graduates lacked the right digital skills to fill those jobs. This has also contributed to the decrease in fresh graduates’ starting salaries in the competitive job market.

 

6.      Poor Attitudes at Work

 

Malaysian fresh graduates are often said to ‘bruise easily’ as they are unable to withstand work and societal stress as they are overprotected by their parents.

 

Fresh graduates are also described as lazy but demanding, passive, full of excuses and they quit easily. These impressions certainly decrease their employability, affecting the job market as a whole. While it may not apply to the entire population, we certainly agree that it is a growing problem in Malaysia.

 

7.      Delay In the Job Hunt

 

A growing number of Malaysian fresh graduates are delaying their job hunt as they would prefer to take a long break after their graduation. While it is understandable to recharge after long years of studying, the long delay could be detrimental as it affects the employability of fresh graduates.

 

It is time for Malaysian fresh graduates to step up their game. As the environment only gets more competitive over time, it is important for fresh graduates to upgrade themselves to boost their employability, or “market value”. Expanding technical skill sets that are in demand and attending online courses to improve interpersonal skills – these efforts are crucial to elevating the value that they can bring to any organisation, increasing their competitive advantage over other graduates. Malaysian fresh graduates should also focus more on researching current career trends. Knowing the industry-standard salary and expectations would help reduce the gap between what fresh graduates want versus what employers are ready to offer.

 

Finally, Malaysian fresh graduates should put more thought into the job application process. Attach a personalised cover letter and/ or a visume to stand out among thousands of applicants. These tips are important for Malaysian fresh graduates to land a decent job in a highly competitive market.

 

Reference:

7 Simple Reasons Why Malaysian Fresh Graduates Are Unemployed, Talent Recruit

 

The $150 Trillion Global Economy in 2030

 

The $150 Trillion Global Economy in 2030

The world economy is projected to exceed $150 trillion by 2030 (it is $126.3 trillion today), with significant growth coming from emerging markets in Asia. The visualization shows countries projected nominal gross domestic product (GDP) in 2030, based on forecasts from the International Monetary Fund’s World Economic Outlook.

The three largest national economies in 2030 are projected to be the same as in 2026. The United States leads at $37.7 trillion (now $32.4 trillion), followed by China at $26 trillion (now $208 trillion) and Germany at a distant third with $6.2 trillion (now $5.4 trillion). Combined, these three economies are projected to add more than $10 trillion in economic output between 2026 and 2030, led by China. The race for third place is remarkably close. Germany is projected at $6.178 trillion in 2030, compared with $6.173 trillion for India, a difference of just $5 billion.

By 2030, Asia and the Middle East are projected to generate $55.7 trillion in economic output, accounting for more than a third of the global economy. Japan will be the region’s next-largest economy after China and India, at $5 trillion, followed by South Korea ($2.3 trillion) and Indonesia ($2.1 trillion).

Europe is projected to account for roughly a fifth of the global economy in 2030. Assuming no new additions or withdrawals, European Union member countries will reach a combined nominal GDP of $26.5 trillion, led by Germany, France ($4 trillion), and Italy ($3 trillion).

 

 

 Reference:

Post by Judah Westreich, The $150 trillion global economy in 2030, on LinkedIn

Budget 2027: Progressive Tax Measures to Strengthen Revenue

 

Malaysia's fiscal consolidation path remains on track, with the deficit projected to narrow from 3.8% of GDP in 2025 to 3.5% in 2026, and a medium-term target of 3% by 2028. Total revenue for 2026 is estimated at RM343.1 billion, but expenditure continues to outpace revenue growth. To sustain this trajectory without resorting to broad-based consumption taxes that would raise prices for ordinary Malaysians, Budget 2027 should introduce a suite of progressive levies targeting excess profits, high-value financial transactions, and top-tier incomes. These measures are designed to be narrowly targeted, administratively feasible, and explicitly ring-fenced to protect the B40 and M40 communities.

 

Source: https://belanjawan.mof.gov.my/ms/cadangan2027 

1. Tobin Tax on Daily Foreign Exchange Transactions 

A Tobin tax — a small levy on spot foreign exchange transactions — was first proposed by Nobel laureate James Tobin to discourage destabilising short-term currency speculation. For Malaysia, a rate of 0.1% to 1% per transaction would target high-frequency speculative flows while leaving long-term trade-related and investment flows largely unaffected. 

Malaysia has prior experience with capital flow management. During the 1997–1998 Asian Financial Crisis, the government-imposed controls on outflows that successfully stabilised the ringgit and restored investor confidence. A Tobin tax would represent a more moderate, rules-based instrument than outright capital controls. 

The critical caveat is unilateral implementation. If only Malaysia imposes such a tax, currency trading activity could migrate to offshore hubs such as Singapore, potentially thinning onshore liquidity. The tax would therefore need to be designed as a graduated levy — lower for transactions linked to genuine trade and direct investment, higher for purely speculative positions — and accompanied by coordination with regional central banks to minimise arbitrage. At a conservative 0.1% rate on an estimated daily onshore FX turnover of USD 10–15 billion, annual revenue could plausibly reach RM1–2 billion. The tax is paid by financial institutions, not by ordinary citizens, and would not affect remittances, travel money, or small-business FX needs. 

2. Graduated Excess Profit Tax on Banks and Oil Companies 

Malaysia already has a precedent for windfall taxation: the Cukai Makmur imposed during the pandemic taxed companies with extraordinary profits, and a Windfall Profit Levy remains in force on oil palm producers, with thresholds adjusted in January 2025 to RM3,150 per tonne in Peninsular Malaysia and RM3,650 per tonne in Sabah and Sarawak. Petroleum companies engaged in exploration and production are currently governed by the Petroleum Income Tax Act 1967 at a 38% rate, which is separate from the general Income Tax Act. 

A graduated excess profit tax would operate as a surcharge above a defined return-on-equity or profit-margin threshold, structured as follows: 

-Tier 1 (moderate excess returns): 2–3% surcharge on profits exceeding a baseline threshold calibrated to normalised industry returns.

-Tier 2 (significant excess returns): 5–7% surcharge on profits above a higher threshold.

-Tier 3 (extreme excess returns): 10% surcharge on profits exceeding a ceiling calibrated to windfall conditions. 

This structure avoids penalising normal profitability and targets only genuinely abnormal gains. For banks, the 2025 statutory corporate rate is 24%; a graduated surcharge would apply on top. For oil and gas companies already paying petroleum income tax at 38%, the excess profit element would need to be carefully ring-fenced to avoid double taxation. Revenue estimates would depend on prevailing commodity prices and banking sector returns, but a well-designed regime could yield RM2–4 billion annually in a normal year, rising during commodity upcycles. 

3. Super Tax on Individuals Earning Above RM1.5 Million 

Malaysia's current top marginal personal income tax rate is 30%, applying to chargeable income exceeding RM2 million. The proposed 35% rate on taxable income above RM1.5 million would broaden the top bracket and increase progressivity. 

This measure directly addresses the government's stated commitment to a "more targeted approach" for high-income groups. The Finance Ministry has already implemented a 2% dividend tax on annual dividend income exceeding RM100,000 effective YA 2025, explicitly targeting the T20 and upper M40 groups with substantial investment income. It has also introduced capital gains tax on unlisted shares and profit distribution taxes on LLPs. 

A 35% top rate would align Malaysia with regional peers and capture revenue from the very top of the income distribution. The number of individuals with chargeable income above RM1.5 million is small — likely in the low tens of thousands — so the direct revenue impact would be modest, perhaps RM500 million to RM1 billion annually. However, the measure carries strong signalling value for fiscal equity and would be difficult to circumvent for salaried top earners and resident directors. 

4. Additional Progressive Measures to Consider 

Beyond the three core proposals, several complementary measures could strengthen the revenue base without affecting the rakyat: 

(a) Carbon Tax on Heavy Industrial Emitters. A targeted carbon tax initially covering power generation, iron and steel, and petrochemicals at RM10 per tonne of CO₂e could generate approximately RM2.1 billion annually in the first five years, rising to RM3–5 billion as the rate increases to RM15–20 per tonne. Proceeds should be ring-fenced for renewable energy transition subsidies and direct cash transfers to vulnerable households to offset any indirect price effects. 

(b) Expanded Health Excises. Higher excise duties on sugar-sweetened beverages, tobacco, and vaping products generate near-term public health revenue while encouraging healthier consumption over time. These are consumption taxes on harmful products, not broad-based taxes on essentials. 

(c) Digital Tax Enforcement. Mandatory e-invoicing and greater cross-agency data integration between the Inland Revenue Board and Royal Malaysian Customs can improve real-time visibility of transactions, strengthening compliance without raising headline rates. This is a revenue-efficiency measure, not a new burden. 

Budget 2027 presents an opportunity to reshape Malaysia's tax architecture toward greater progressivity without imposing new burdens on ordinary households. The Tobin tax, graduated excess profit tax, and super tax on top incomes collectively represent a coherent package: each targets a distinct pool of excess or high-value activity, each is administratively feasible within existing institutional frameworks, and none directly affects the daily finances of the B40 or M40. When combined with carbon pricing, health excises, and digital enforcement, these measures could raise RM6–10 billion annually in additional revenue — a meaningful contribution to fiscal consolidation that upholds the principle of "shared prosperity" without asking the rakyat to pay more for essentials.

Malaysia Boleh at its Zenith

 

The Guinness Book of World Records may not track or have a category for three former premiers turning out on the same day in court for corruption cases. The coincidental simultaneous appearance of PM6 Datuk Seri Najib Razak, PM8 Tan Sri Muhyiddin Yassin and PM9 Datuk Seri Ismail Sabri Yaakob at the Kuala Lumpur Court Complex on Aug 27 is viewed by the media and political analysts as a striking unprecedented national event. We need a public holiday? How about National Corruption Day?

Source: https://en.wikipedia.org

Ismail Sabri was charged with failing to fully declare his assets to the Malaysian Anti-Corruption Commission (MACC). The 66-year-old former UMNO vice-president was accused of intentionally submitting a written asset declaration that failed to comply with a notice issued under Section 36(1)(a) of the MACC Act 2009. The omitted items allegedly include millions in local and foreign currencies (such as ringgit, Singapore dollars, US dollars, Euros and Japanese yen) alongside physical valuables like five 1kg gold bars, a silver bar and a gold coin.

The Bera MP who holds the record for shortest premiership stint of only 15 months (Aug 21, 2021, to Nov 24, 2022) pleaded not guilty at the Kuala Lumpur Sessions Court and was granted bail of RM300,000 which was settled by his son. The case scheduled for mention on Sept 29.

Najib was next to arrive followed by Bersatu president Muhyiddin who faces four charges of abusing his position to obtain RM232.5 million in gratification for his party and three money laundering charges involving RM200 mil.

The 79-year-old who administered the country via the so-called backdoor Perikatan Nasional (PN) government from March 2020 to August 2021 continued his trial on seven charges linked to the Jana Wibawa programme, an initiative introduced to support businesses and stimulate the economy during the COVID-19 pandemic.

Of the trio, probably the most seasoned of them all is Najib – the former 10-term Pekan MP who reigned from April 2009 to May 2018 – who is currently serving a prison sentence since August 2022 following his conviction in the SRC International case though he later had its jail term and fine reduced by the Pardons Board.

The 73-year-old Bossku was convicted in late 2025/early 2026 on abuse of power and money laundering charges in the main 1MDB criminal trial. As it is, Najib continues to attend hearings for massive civil suits such as the on-going US$5.64 bil suit brought by 1MDB and its subsidiaries to recover misappropriated funds

Malaysia Boleh is not just in sports or construction but corruption as well. What an example! And all three of them were (or are) from the same party and it is a testimony of its failing?

 

Reference:

Malaysia Boleh at its zenith: 3 ex-PMs in the dock on the same day for separate graft trials, Focus Malaysia, 28 August 2026

 

Is Job Hopping Among Malaysian Gen Z Driven by Poor Quality, Not Work Ethic?

 

Job hopping among young Malaysians is mainly caused by poor job quality, including underemployment and low starting wages, and not changing work ethics, according to PNB Research Institute (PNBRI). 

A PNBRI article titled “Job Hopping and Early Career Instability” found that many job changes are due to low pay, limited career growth, and jobs that do not match qualifications. 

In the third quarter of 2025, 74.3% of workers aged 15-24 were in roles below their qualification level, much higher than the national average of 35.5%, and this gap has been widening since 2017. Among workers aged 25–34 (older Gen Z and younger Millennials), skill-related underemployment is still high at 41%, above the national average, but lower than for the youngest group. PNBRI said this suggests that underemployment tends to decrease as workers get older. 

It added that it also reflects a long-term structural issue, as fewer skilled jobs are being created while more graduates enter the workforce. PNBRI also noted that real entry-level wages have fallen over time, dropping by 10% for degree holders and 28% for master’s degree holders between 1997 and 2022. 

The estimated minimum cost of living in Kuala Lumpur is about RM2,400 for a single person and RM3,970 for a household, while some government-linked companies set the living wage at RM3,100. However, most graduates earn below these levels. About 66.3% of degree holders and 93.1% of diploma holders earn less than RM3,000. Even more concerning, 30.6% of degree holders and 66.3% of diploma holders earn below RM2,000, which is far under the basic living cost. 

Although some graduates do progress over time, many still begin their careers in low-paying jobs despite their qualifications. As a result, young workers often change jobs out of necessity to find better pay and opportunities, rather than personal preference. Job changes are normal early in careers but happen more often when jobs are unstable and lack clear career growth. With lower wages, many workers in jobs below their qualifications, and unclear career paths, switching jobs can be a reasonable choice. The main issue is whether early-career jobs are good enough for young people to stay. 

The institute warned that unstable early careers can lead to long-term effects such as slower skill development and weaker earnings growth. To address this, PNBRI called for three core pillars to be included in policy: strengthening wage and job quality foundations to support stable early-career pathways; strengthening school-to-work and job matching through work-based learning and structure; and strengthening lifelong learning systems to support career growth without frequent job changes. 

Reference:

Job hopping among Malaysian Gen Z driven by poor job quality, not work ethic — PNB Research Institute, Jazlin Zakri, theedgemalysia.com, 28 May 2026

Frozen Inheritance Assets in Malaysia Hit RM90 Billion!

 

According to a report by the Asia News Network, Malaysia currently has an estimated RM90 billion in inherited property, shares, and savings sitting frozen in legal limbo. This is on top of a separate RM13 billion languishing in unclaimed money, dormant bank accounts, unclaimed salaries, insurance payouts, and forgotten deposits. That's not a hypothetical number sitting in a spreadsheet somewhere. That's real land, real savings, real family homes, stuck because someone passed away without leaving clear instructions, and the people left behind had no legal way to move forward cleanly.

 

Image from The Star 

The report points to something that struck a nerve: a lot of younger professionals and middle-income earners genuinely believe wills are only for the wealthy or the elderly. Here's the part that doesn't get explained often enough. Without a will, your estate doesn't just sort itself out according to what everyone assumes you would have wanted. For non-Muslims, the Distribution Act kicks in and applies a fixed legal formula regardless of your actual wishes, your actual relationships, or who was genuinely depending on you. 

Before anything gets distributed at all, someone has to apply for a Grant of Probate, or Letters of Administration if there's no will, a court process that can take months or years depending on how complicated the estate is and how many parties are involved. 

The unclaimed money side of this is almost sadder, because at least frozen inheritance assets are visibly disputed. Unclaimed money just sits there, silently, because nobody knew to go looking. Old bank accounts, insurance payouts nobody followed up on, deposits from jobs or transactions long forgotten. 

The good news is that checking is genuinely simple. The eGUMIS portal, run by the national accountant general's department, lets anyone search using an IC number, free of charge, with no time limit on claims and no minimum amount required. It takes minutes to search. 

If you have children, aging parents, or even one piece of property with your name on it, you already have enough to justify writing a will this month, not someday. 

Reference:

Frozen inheritance assets in Malaysia hit RM90 billion, Kamarul Azwan, Newswave,
30 August 2026