KUALA LUMPUR, Sept 11 (Bernama) -- Technical and Vocational Education and Training (TVET) must be viewed as a critical frontline solution to equip Malaysia’s workforce with skills for high-growth industries such as semiconductors, renewable energy and electric vehicles, said an economist.
Universiti Utara Malaysia’s Economic and Financial Policy Institute senior associate fellow associate professor Irwan Shah Zainal Abidin said today that this approach can propel Malaysia to emerge as a hub for skilled talent and attract foreign direct investments, making the country an ideal host for global companies.
He said that prioritising TVET is key to meeting industry demand, including that of foreign investors, and in the process, safeguard the country’s growth. However, he lamented that “employers often struggle to find qualified technicians, engineers and specialists” even as Malaysia continues to attract FDIs, particularly in advanced manufacturing and the semiconductor industry.
He cited how Boeing’s planned facility and support towards making Malaysia a regional aerospace hub, semiconductor expansions by Intel, Infineon and Tata Electronics, and relocations under the “China-plusone” strategy, would require the right talent pool.
“Investment alone is not enough without the right talent pool as industries such as semiconductors demand precision, discipline and advanced skills,” he said in a statement in response to the rising importance of TVET in Malaysia's industrial landscape.
“Our technicians, engineers and specialists will be the true backbone of this industry, (and) with the right training, Malaysia can position itself not just as a host to global companies but as a hub for skilled talent,” he said.
Irwan cautioned that the growing mismatch between skilled labour supply and industry demand, especially in high-growth, high-value sectors, threatens to slow Malaysia’s economic progress.
He said the challenge is even more urgent as the nation pushes to climb the value chain and tap into emerging sectors such as the green (low-carbon), blue (sustainable-marine), grey (harmful-related) and orange (creative) economies.
Among other things, these economies aim to achieve growth by reducing environmental risks, sustainably utilising ocean and freshwater resources for economic growth, and fostering a creative economy that generates intellectual growth, all of which would require new skills.
Between 2022 and 2023, Irwan said, a total of 260,000 fresh graduates entered the job market, whereas only 150,000 high-skilled jobs were created, which led to 110,000, or 36 per cent of underemployment in the labour market in those years.
He emphasised that this mismatch is also a wake-up call for Malaysia’s education providers. Higher learning institutions must urgently shift towards embedding stronger TVET elements into their programmes, ensuring students graduate with industry-ready skills.
Without this transformation, Malaysia risks producing graduates misaligned with future jobs while industries continue to face shortages of skilled workers.
To build a skilled workforce, he said Malaysia’s TVET ecosystem should scale up in three areas, namely capacity, which inculcates more places, labs and industry-grade facilities, quality, including up-to-date modules aligned with technologies and industry needs, and pathways incorporating clear progression into higher TVET, universities and lifelong learning.
Irwan said that the Fourth Industrial Revolution and emerging technologies such as artificial intelligence and the Internet of Things are reshaping industry needs, requiring new skills that traditional education alone cannot provide.
“TVET institutions are better positioned to adapt quickly to these changes, especially in advanced sectors like renewable energy, electric vehicles and semiconductors.
“While cross-border talent can plug short-term gaps, long-term resilience hinges on a demand-driven TVET ecosystem under the MADANI Economic Framework,” said Irwan.
“In the future, Malaysia must not only be a place where goods are made. It must be about ‘Made by Malaysia’ powered by homegrown skills, innovation and talent,” he added.
Source: https://www.bernama.com/misc/rss/news.php?id=2466384