MySTEP should be revamped with better wages, structured skills training and clearer pathways to permanent jobs, says academic
PETALING JAYA: The Malaysia Short-Term Employment Programme (MySTEP) could remain a temporary stopgap for graduates and job seekers unless it is urgently reformed with higher pay, clearer skills development and stronger pathways into permanent employment, an academic said.
The observation comes as the government confirmed that MySTEP will be extended in 2026, continuing to offer short-term public sector work for graduates, job seekers, persons with disabilities and senior citizens.
Universiti Teknologi Mara senior lecturer in economics Dr Mohamad Idham Md Razak said the programme has provided temporary income and work exposure but its current structure no longer reflects economic realities, particularly in urban areas.
“Rising living costs and inflation have made MySTEP wage structure increasingly challenging for participants.
“While it may cover minimum daily expenses, it is often insufficient once housing, transport and food costs are considered especially when wages do not reflect qualifications, workload or local living costs.”
Mohamad Idham acknowledged that from an economic standpoint, MySTEP still has value as a temporary labour market intervention.
However, he cautioned against viewing it as a long-term solution for graduate employment.
“From an economic standpoint, extending MySTEP can still be justified as a short-term labour market intervention but it is less suitable as a long-term strategy for graduate employment.
“Continued reliance on the programme risks masking deeper structural issues, such as weak creation of quality entry-level jobs and slow wage growth for graduates.”
While the programme contributes to lowering headline youth unemployment figures, its effectiveness in addressing underemployment remains limited, Mohamad Idham added.
“In the graduate job market, MySTEP helps reduce youth unemployment in the short term by providing temporary placements and income support.
“However, its impact on underemployment is limited, as many participants remain in roles that do not fully utilise their skills or significantly improve long-term employability.
“There is a risk that ongoing dependence on short-term programmes like MySTEP could normalise temporary employment among young graduates.
“This may reduce employers’ incentives to create permanent positions, potentially leading to job insecurity, delayed career progression and weaker income growth over time.”
Mohamad Idham stressed that supporting young graduates requires a broader policy shift beyond temporary placements. The focus should be on sustainable job creation and better alignment between education and industry needs, he added.
“Policy focus should also have incentives for permanent hiring, structured graduate training and stronger industry-academia collaboration, so that MySTEP serves as a genuine bridge to stable careers rather than a stopgap measure,” he said.
