This chapter discusses graduate work-readiness challenges in Malaysia in the light of government efforts to achieve developed nation status by 2020. The low level of work-readiness among Malaysian graduates, despite continued government initiatives to facilitate human resource development, is one of the major challenges. The key contributions to the Malaysian economy are from services, manufacturing, mining and quarrying, which in total accounted for more than 80 percent of the gross domestic product (GDP) of US$296.3 billion in 2015 and which is growing at an average annual rate of 5 percent (Department of Statistics Malaysia 2017; World Bank 2016). These sectors are also the main sources of employment for more than 83 percent of the labour force. It is more challenging that the current proportion of skilled human capital in Malaysia is at 28 percent, whereas 40 percent is required to achieve developed nation status. Malaysia enjoys political and economic stability, which has contributed to it becoming one of the top fifty economies in the world. The country appears to have adequate labour market conditions, economic infrastructure and educational systems to achieve developed nation status, so the problem of work-readiness is even more vexing.