Economic Transformation in Action: Shaping the Future of Malaysia's TVET Landscape
Chen Wearn HENG
Product Development Specialist with Market Intelligence and Analytics | HR Practitioner | IR 4.0 Digital Skills | Talent Development
Article author: Chen Wearn, HENG
Under Supervision by: Dr. Lau Wee Yeap, UM Associate Professor at the Faculty of Business and Economics
Key Topics: Economic Transformation, Skills Gap, Workforce Competitiveness, Industry Collaboration, Future-Proofing TVET
Malaysia’s Technical and Vocational Education and Training (TVET) is at the forefront of the country’s efforts to drive economic transformation, particularly in addressing the skills gap in emerging fields like artificial intelligence (AI), electric vehicles (EV), IoT, and agricultural automation. The introduction of the National TVET Policy 2030 in 2024 is central to aligning the workforce with the demands of high-growth sectors, particularly advanced manufacturing and technology.
?Key Focus Areas:
Bridging the Skills Gap: The policy is designed to train TVET graduates in industry-relevant skills, ensuring they can transition smoothly into sectors that require expertise in AI, IoT, and automation.
Build a Competitive Workforce: By focusing on fields with rapid technological advancements, the policy aims to ensure Malaysia remains competitive in the global market, positioning TVET as a key player in shaping the future labor force.
Lessons from Past Transformations
The current transformation of Malaysia’s TVET system echoes earlier shifts driven by automation and globalization. The Industrial Revolution was marked by a transition from agricultural to industrial jobs, emphasizing the importance of both human capital (education and training) and physical capital (Machinery, hardware tools, equipment and infrastructure).
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Historical Advancements:
In past decades, the introduction of steam power, diesel engines, and automated machinery reshaped industries, providing low- and semi-skilled workers with new job opportunities.
Today, advances in ICT, robotics, and AI are similarly transforming industries, necessitating that workers at all levels continuously upgrade their skills to stay relevant.
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Present-Day Parallels:
Just as automation and steam power revolutionized the workforce in the past. The entire AI, Automation, Smart Factoy, IoT, and computer-controlled machines are transforming today’s labor market.
Hence, the government and industry are aware of this shift and are responding through policies like the National TVET Policy 2030.
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Addressing TVET Challenges and Leveraging Opportunities
Despite its potential, the TVET sector faces several challenges:
Implementation of Solutions:
Improving Data Management: The Ministry of Higher Education (MOHE) has identified the need for better data tracking, particularly in terms of employment outcomes for graduates.
Public Perception: Addressing the public’s perception of TVET as a second-tier option compared to academic pathways is a priority.
Collaborations with Industry: The Ministry of Human Resources (MOHR) and industry players are collaborating to offer upskilling and reskilling programs that ensure the workforce stays competitive and skilled in emerging technologies such as AI and Smart Manufacturing.
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The Way Forward: Skills Shifts and Trends
With FDI inflows reaching RM152 billion in 2023, the government recognizes that a skilled workforce is critical to attracting more investment and sustaining economic growth. The focus is on shifting from merely technical knowledge to mastering a combination of technical skills and adaptive behavioral competencies, crucial for managing robotics, automation, and AI-driven tools. Together with Malaysian Government Initiatives of RM200 million fund through the Skills Development Fund Corporation (PTPK) supports marginalized groups, such as people with disabilities and indigenous communities, ensuring inclusivity in the labor market..
The emphasis is on preparing a workforce capable of adapting to fast-evolving technologies and industry needs.
1.??????? Future-Proofing TVET: Collaboration is Key
The employability of TVET graduates has significantly improved, rising from 65.5% in 2010 to 94.0% in 2023. However, a large portion of these graduates remains in semi-skilled roles, aiming to climb into white-collar positions.
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2.??????? Industry-Academia Collaborations:
Successful partnerships between industries and academia are critical for aligning the curriculum with industry demands. One such success story is ARS Sdn. Bhd., a company is in Puchong, who collaborates with institutions in China to design training programs in Industry 4.0, IoT digitalization, and automation.
These collaborations are crucial for equipping TVET lecturers with up-to-date skills in areas such as Hybrid and Electric Vehicle (EV) Maintenance, Smart Manufacturing, and HVAC systems for the relevant parties, such as The Ministry of Youth and Sports (KBS), MOHE, TVET lecturers, MOHR Officers, and many Industrial Training institute (ILPs).
Impact:
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TVET is becoming a driver of economic transformation by ensuring a steady supply of highly trained, competent workers capable of meeting the needs of high-tech industries.
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The Road Ahead: TVET as a Driver of Economic Transformation
Malaysia’s Year 2023 youth demographic, representing 33.6% of the population aged between 18 and 44, is a vital talent pool potential to serve for industries such as manufacturing, semiconductors, and logistics and Transportation and many more sectors.
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The National Skills Development Plan needs to align closely with Industry 4.0 and the digital workforce to ensure Malaysia’s future competitiveness.
Dual training programs—which blend classroom learning with hands-on industry experience—will be key to bridging the gap between education and real-world requirements.
For TVET to truly transform the Malaysian economy, it must be agile, adaptive, and collaborative.
All Success lies in:
a.??????? National Vocational Certificate (NVC) for Foundational Skills.
b.?????? Certificate of Competency (CoC) for Specific Trade Skills.
c.??????? Diploma in Vocational Education and Training (DVET) for Advanced Technical Skills.
d.?????? Diploma in Technical Education (DTE) for Specialized Technical Expertise.
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In a conclusion, the adaptability and agility of the TVET system is essential to keeping up with technological, social, and economic transformations. For TVET to succeed, it must be responsive to change and trusted by all stakeholders—ensuring that our young graduates are well-prepared for the workforce of the future.
These initiatives promise to create a robust, future-ready workforce capable of meeting Malaysia's economic needs and maintaining global competitiveness and high employment rates by building a future-ready workforce in a rapidly evolving global landscape.
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Figure 1: Infographic:
TVET Learning Roadmap by Different Age Group and Module Levels
*Recommendation, based on independent research perspective.
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Reference:
5.??????? More Information on specific TVET programs and institutions in Malaysia, we can visit the website of the Department of Skills Development (DSD): https://www.dsd.gov.my/en/
Empowering TVET l Empowering People
4 个月Very informative article. I like the focus on the role of industry collaboration. Strong and continuous tripartite collaboration among policymakers, training providers, and industries is necessary to ensure the success of TVET and the readiness of talent.