Final answer:
To mitigate youth unemployment in Malaysia, strategies such as investing in human capital, offering vocational training, providing start-up incentives, improving business regulations, and facilitating retraining for skills mismatch are essential.
Step-by-step explanation:
Addressing the issue of youth unemployment in Malaysia requires multifaceted strategies to encourage self-employment among young Malaysians. Learning from the case of South Africa, investment in human capital is paramount. This includes enhancing practical skills through vocational training and apprenticeship programs. Additionally, the government can incentivize self-employment by providing start-up grants or subsidies, and by creating a conducive environment for innovation and entrepreneurship. Adopting policies that stimulate domestic savings and improve the investment climate for foreign technology firms can foster economic growth which benefits the self-employed sector. Moreover, redesigning business regulations to facilitate easy startup and operation of businesses can encourage more youths to pursue self-employment. Offering support and retraining opportunities is also crucial for those with skills not aligned with current market demand.