Malaysia: Malaysia is reinforcing its human capital development agenda through the Academy in Industry (ADI) initiative, a key labour market reform aimed at strengthening talent development, improving productivity, and meeting the workforce needs of high-tech industries. Led by the Malaysia Productivity Corporation (MPC), the initiative adopts an industry-driven approach to workforce development, addressing rapid technological changes, the growing adoption of artificial intelligence (AI), and the increasing demand for new skills.
According to BERNAMA News Agency, ADI is more than a training or job placement programme. It serves as a strategic national instrument to reduce Malaysia's reliance on foreign workers from 15 per cent to 10 per cent by 2030, retain greater economic value within the country, and help achieve the manufacturing sector's median wage target of RM4,510. "Through the 'Place and Train' approach, participants are placed directly in industry, with training comprising 80 per cent workplace-based practical learning and 20 per cent theoretical instruction. This ensures talent development remains aligned with actual industry needs," the corporation said.
To advance the initiative, MPC recently organised the National Conference on Academy in Industry, themed 'Advancing Productivity Through Skilled Future-Ready Talent', bringing together industry leaders, educational institutions, government agencies, and strategic partners. The conference also highlighted the role of the ADI Clearing House as a national talent coordination platform that accelerates job matching and promotes the use of AI as a productivity multiplier, creating more high-value employment opportunities for Malaysians.
Deputy Minister of Investment, Trade and Industry Sim Tze Tzin, in his opening address, commended this strategic move. He said the development of local talent has become one of Malaysia's key competitive advantages in attracting foreign investment. "Investors no longer choose a country simply because it offers low labour costs. They choose countries capable of producing highly skilled, productive, and future-ready local talent. ADI is a testament to Malaysia's commitment to building an ecosystem trusted by the global industry," he said.
Sim added that the government aims to increase the proportion of Malaysia's highly skilled workforce from the current 30.4 per cent to 35 per cent by 2030, before raising it further to 40 per cent by 2033. Meanwhile, MPC chairman Kamaruzzaman Johari said ADI is more than an employment programme; it creates sustainable career pathways through work-based learning.
"We are witnessing life-changing transformations among Malaysian youths. Through ADI, participants not only secure stable employment and income but also acquire industry-recognised qualifications such as the Malaysian Skills Certificate (SKM) and International Professional Diplomas. This is one of the best investments for the future of Malaysia's workforce," he said. He added that the initiative supports the aspirations of the 13th Malaysia Plan, the MADANI Economy framework, and national industrial policies by enhancing labour productivity, expanding the skilled workforce, and attracting high-value investments.
MPC has called on more industry players, educational institutions, and strategic partners to work together in expanding the implementation of ADI to develop a future-ready workforce capable of meeting industry needs, improving national productivity, and strengthening Malaysia's position as a regional hub for high-quality investment.