Rehda Institute survey finds gap between student and employer views on graduate readiness, AI impact
A Rehda Institute survey reveals a significant gap between student and employer expectations on how quickly fresh graduates can add commercial value. Half of employers surveyed expect AI to reduce entry-level roles over the next three years, while only 32.3% of employers said local universities adeq
PETALING JAYA (Sept 26): A gap has emerged between how quickly students think fresh graduates can contribute at work and employers' expectations, according to a Rehda Institute survey that also found half of employers surveyed expect artificial intelligence (AI) to reduce the number of entry-level roles they hire for over the next three years.
The Rehda Institute Youth Initiative (RIYI) 2026 survey found that 41.6% of student respondents considered one to three months a realistic timeframe for fresh graduates to begin adding commercial value at work, compared with just 2.9% of employer respondents. Meanwhile, 62% of students felt their universities had prepared them well for the workplace, while only 32.3% of employers agreed that local universities adequately prepare graduates for workplace realities.
The findings are contained in RIYI 2026's closing summary report, based on targeted surveys of students and recent graduates from Malaysian universities and employers. Rehda Institute said the surveys provide insights into graduate expectations and employer perspectives but are not nationally representative.
The report also highlighted the potential impact of AI on entry-level employment. While 76.4% of student respondents said they regularly use AI tools, 50% of employers surveyed expected AI to reduce the number of entry-level roles they hire for over the next three years.
The findings come as the 13th Malaysia Plan, 2026–2030 (13MP) calls for higher education programmes to be more closely aligned with industry needs, with greater industry involvement in talent development. The plan also proposes a mandatory paid internship scheme and greater collaboration between public universities and the private sector as part of efforts to develop a more demand-driven learning model.
Rehda Institute chairman Datuk Jeffrey Ng Tiong Lip said closer collaboration between universities and industry was needed to give students earlier exposure to workplace realities. “A university qualification provides an important foundation, but young people also need to understand how workplaces operate, how decisions are made and what employers expect from them,” he said.
The survey also found some common ground: 79.4% of employers surveyed said they were willing to provide structured training and a clear career path in exchange for a retention commitment, while 67.6% of students said they would accept such an arrangement. On pay transparency, 82.4% of students and 58.3% of employers supported compulsory disclosure of salary ranges in job advertisements. Talent retention also emerged as a concern, with 57.1% of student respondents saying they were likely or very likely to work outside Malaysia within five years.
