IN THE fast hanging landscape of Malaysia’s economy, the demand for a skilled and adaptable workforce has become increasingly pronounced. 

As industries transform, driven by technological advancements and global trends, the need for upskilling and reskilling has emerged as a critical priority. 

This imperative extends beyond traditional educational institutions, necessitating innovative approaches and collaborative efforts across various sectors. 

Addressing Skill Gaps 

The Human Resource Development Corp (HRD Corp) is leading the efforts to address emerging skill gaps through specialised training programmes. As the population ages and youth unemployment rises, coupled with challenges like brain drain, there’s a growing urgency for targeted actions. 

CEO Datuk Shahul Dawood underscored the organisation’s close collaboration with industries to identify emerging skill gaps and create customised upskilling and reskilling programmes for Malaysian workers. 

He emphasised the significance of the Industrial Skills Framework (IndSF), crafted in partnership with industry stakeholders, as a pivotal initiative in this endeavour. 

The IndSF also maps out the knowledge, skills, certification requirements, experience criteria and career pathways for various jobs across different industries. 

Since the commencing of the initiative in 2020, Shahul said that HRD Corp has produced 13 IndSF for the sectors in Malaysia, namely oil, gas and energy; machinery and equipment; hospitality; plastics; wholesale and retail; digital technology; water and sewerage services; aerospace; higher education; logistics and warehousing; food and beverage (F&B); agriculture; and textile manufacturing. 

HRD Corp pioneers workforce development in Malaysia through innovative methods, by notably digitising grant processes, which optimises levy payments for training. Automation and machine learning streamlined approvals, cutting grant approval time from 48 to 24 hours and processing time from 12 to seven days, benefitting industries and registered employers alike. Shahul stated that in 2023 alone, the enhancements enabled the organisation to process 59% more applications compared to the previous year, while achieving an impressive 88% reduction in processing time.

HRD Corp plans to introduce digital coaching, offering scalable programmes through the MyHRDCorp Super App. These programmes will feature video sessions led by top coaches. 

Since February 2021, its e - LATiH e - learning platform has provided convenient digital programmes for Malaysians, boasting 401,000 users and 1.22 million enrolments since being launched. 

Partnerships and Collaborative Efforts

Highlighting HRD Corp’s successful partnerships with the government, employers and educational institutions to promote workforce training and skills development, Shahul said the organisation has diligently cultivated a vast network of partners over the past three decades. 

The collaborative effort reached a milestone with the inaugural National Training Week (NTW) in 2023, held from May 22 to 28. NTW 2023 garnered support from ministries, government agencies, associations, training providers, academia and individuals, offering free training opportunities nationwide. 

“NTW 2024 will be HRD Corp’s commitment to empowering Malaysians through a wide range of comprehensive free training initiatives, enabling us to play an active role in nation - building and also advancing personal growth,” said Shahul to The Malaysian Reserve (TMR). 

With ambitious plans to deliver 25,000 free training courses to over 150,000 Malaysians nationwide, NTW exemplifies HRD Corp’s ability to harness the resources of various stakeholders to provide diverse training and development opportunities for all Malaysians. 

Concurrently, in March this year, Human Resources Minister Steven Sim Chee Keong mandated Talent Corp (M) Bhd (TalentCorp) to serve as the strategic think tank for the Ministry of Human Resources (KESUMA). 

The new mandate expands TalentCorp’s role to develop intelligence capacity for crafting strategies related to policy development, advocacy and future planning in response to evolving challenges within the Malaysian workforce. 

Additionally, the announcement included the establishment of the Future Skills Talent Council (FSTC) for the electronic and electric (E&E) sector, aimed at identifying skills and training needs, as well as the initiation of a study on the impact of artificial intelligence (AI), digitalisation and green economy on the Malaysian workforce. 

Besides that, Budget 2024 also outlined the implementation of skills improvement and reskilling initiatives with an allocation of RM1.6 billion for 1.7 million training placements. 

The initiatives will be executed through HRD Corp to enhance human capital development. 

Upskilling in Malaysia 

In the vibrant landscape of Malaysia, where demographic shifts meet the pulse of economic vitality, challenges and opportunities converge. 

OpenAcademy co - founder and MD Celine Ting said demographic challenges such as an ageing population intersect with pressing labour market issues, including a notable youth unemployment rate of 11.1%. 

In addition, she said the country also faces the significant phenomenon of brain drain, with a higher – than - average emigration rate of 5.6% among native Malaysians, leading to a substantial skills and talent deficit. Currently, around 1.86 million Malaysians have opted to pursue opportunities abroad, further intensifying the skills gap domestically. 

“Malaysian workers’ strong drive to attain fresh digital competencies is primarily fuelled by aspirations for salary enhancement and career advancement, constituting 30% and 28% respectively. 

“Yet, the foremost impediment hindering upskilling endeavours in Malaysia is the financial burden, as highlighted by 39% of respondents citing the prohibitively high costs of courses as a significant deterrent - surpassing the regional average of 28.6%. Employees also report that a lack of time is a key barrier in acquiring analytical, green and soft skills,” she said. 

Commenting further, Ting stated that balancing professional commitments, personal responsibilities and educational pursuits presents a multifaceted challenge for individuals striving to upskill. 

“In the modern world, where work - life balance is increasingly elusive, finding dedicated time for learning can be a significant hurdle. Professionals often find themselves immersed in demanding work environments, where meeting deadlines, attending meetings and handling daily tasks consume the bulk of their time and energy, coupled with personal responsibilities such as family obligations, household chores and other commitments that demand attention outside of working hours,” she said. 

“In such a scenario, the pursuit of education, whether through online courses, self-study or attending workshops, competes for the limited time and attention available. As a result, individuals may struggle to carve out dedicated learning periods amid their busy schedules.” 

Fostering Employee Development

On the other hand, human resource (HR) specialist Usha Devi Arumugam emphasised that employee development extends beyond mere training sessions and can encompass job enrichment through role expansion, involvement in in - house projects and even mentoring. 

For that, she believed that organisations can also engage their leaders to facilitate learning activities for their staff. These leaders’ experience and knowledge can provide fresh insights to the employees. 

“I know of an organisation that implemented this approach. It enlisted leaders from various functions to conduct two - hour training modules as part of its talent development programmes. Needless to say, it never lacked participants,” she told TMR. 

Moreover, she elaborated on several ways organisations can support employee development through creative use of internal resources. 

“Importantly, employers should clearly communicate that other forms of development, such as job enrichment and mentoring, are integral to employee growth,” she said. 

Usha Devi said this is crucial because some employees mistakenly equate employee development solely with training. 

She noted that most organisations use employee engagement survey results as an indicator of development progress. In that sense, she said that a wide array of online learning platforms existed to cater to the needs of employers, providing flexibility for employees to choose their own learning paths or participate in tailored curricula addressing organisational needs. 

“Over the years, HRD Corp has enhanced visibility and awareness regarding the importance of training, consequently boosting workforce training participation. However, continued governmental focus and incentives are necessary to further encourage businesses to prioritise learning initiatives,” she added. 

Conversely, Universiti Sains Islam Malaysia Faculty of Leadership and Management Assoc Prof Dr Abdul Rahim Zumrah said employers can organise in-house training by utilising internal sources such as appointing instructors among senior staff to conduct the training at their own training centre or designated training room. 

He also explained how the return on investment (ROI) for training can be evaluated based on individual, departmental or organisational performance. 

“At the individual level, the ROI for training can be gauged by assessing factors such as the employee’s disciplinary record, annual performance evaluations, and their work attitude and behaviour, including aspects like loyalty, commitment and engagement. 

“Meanwhile, at the departmental and organisational levels, the ROI for training can be measured by examining the achievement of departmental and organisational objectives,” he said. 

He suggested that HR departments should introduce a learning platform to foster a culture of continuous learning and said that all relevant materials, including notes, work procedures, previous training videos and training schedules can be uploaded for staff to access and utilise. 

Challenges in Digitalisation

In navigating the landscape of modern business, Malaysian Employers Federation (MEF) president Datuk Dr Syed Hussain Syed Husman brings attention to a significant hurdle faced by businesses: The formidable cost associated with embracing digitalisation in their processes and operations. 

As industries increasingly shi towards digital solutions to enhance efficiency and competitiveness, Syed Hussain underscored the persistent challenge posed by the financial investment required to implement such technological advancements. 

“The cost of digitalisation includes expenses for Internet connectivity, digital hardware and recurring software subscription fees. 

“Low levels of awareness and knowledge about financing and technologies make it more difficult for businesses, especially micro, small and medium enterprises (MSMEs), to make decisions on digital transformation,” he added. 

Syed Hussain also noted findings from a survey conducted by SME Corp Malaysia and Huawei Technologies (M) Sdn Bhd, revealing that 60% of business owners often lack awareness of financing options, with 34% believing that cloud computing is expensive. 

“There remains a shortage of digital talent, a critical factor in adopting new technologies. Only about 15% of Malaysians possess advanced ICT skills. Disparities in digital infrastructure availability need to be addressed. 

“KESUMA and HRD Corp can play pivotal roles in overcoming these challenges by aligning HRD Corp - funded training programmes with skills relevant to digitalisation and emerging technologies,” he said. 

Syed Hussain also noted that limited upskilling or reskilling is occurring among microenterprises, primarily because contributing to HRD Corp is considered optional for them, leading to the majority choosing not to participate. 

Source: https://themalaysianreserve.com/2024/04/24/developing-skilled-malaysian-workforce-in-the-modern-world/