Top-flight clubs have handed greater opportunities to young players who Palacios feels many have grabbed with both hands.
"In these first two games of the season I'm the happiest person after seeing clubs involving a youth policy," Palacios tells KickOff.
"It's refreshing to see players as young as 18 and 19 years old receiving an opportunity to play.
"I don't want to mention the names of the players or the clubs, but it makes me happy.
"I'm happy South Africa believes in the young generation.
"You can play them for even 10 or 15 minutes, but it gives hope to see these young players.
"The only thing these youngsters need is an opportunity. I hope I continue to see these young players enjoying their football.
"I hope one day everyone can do it."