Could Australia’s HECS Model Solve the Youth Job Crisis in Asia-Pacific?

Youth unemployment in the Asia-Pacific region continues to rise at an alarming rate, creating a pressing crisis that threatens long-term economic growth and social stability. In response, World Vision Australia has proposed an innovative solution inspired by Australia’s HECS (Higher Education Contribution Scheme)—a student loan model where repayments are income-contingent, making education more accessible without the burden of immediate debt.

The rationale is simple: by removing the upfront costs of tertiary or vocational education, more young people across developing nations in Asia-Pacific—such as Indonesia, the Philippines, and Cambodia—can gain the skills they need to enter the workforce. Much like Australia’s HECS, this proposed system would allow students to study now and repay later, once they’re earning a sustainable income.

With millions of young people unemployed or underemployed in the region, the current gap between education and employability is widening. Economic recovery post-COVID, the rise of digital jobs, and industry demands have all outpaced many traditional education systems, leaving youth without the qualifications or job-ready skills they need.

World Vision argues that a regional loan system could bridge the equity gap, drive upskilling efforts, and reduce youth dependency. It would also promote regional economic development by creating a more skilled, mobile, and productive labor force.

However, challenges remain. Implementing such a loan model across diverse economies will require strong government cooperation, policy reform, and financial backing. But if done right, this could be a transformative step towards empowering the next generation with opportunities—not obstacles.

_Daily Growth Insights