Kuala lumpur: Budget 2026 must ensure that Technical and Vocational Education and Training (TVET) courses align with Malaysia’s economic priorities, such as value-added job creation in manufacturing, five-year development plans, and future-led energy transition initiatives including renewable energy. National Association of Skilled Workers (Belia Mahir) president Mohammad Rizan Hassan said many TVET institutions were offering courses that were no longer aligned with industry demand.
According to BERNAMA News Agency, Belia Mahir is calling for specific allocations in the upcoming budget to expand TVET capacity, upgrade facilities, and update outdated curricula. Funding for TVET is essential to support high-demand sectors such as electric vehicles (EVs), robotics, semiconductors, and renewable energy, in line with the New Industrial Master Plan 2030 (NIMP 2030), 13th Malaysia Plan (13MP), and National Energy Transition Roadmap (NETR), he said.
In a statement today, the association emphasized investments in modern equipment, specialized laboratories, and qualified trainers as critical to ensuring programs remain competitive and industry relevant. Mohammad Rizan highlighted the importance of prioritizing small and medium enterprises (SMEs) and job readiness, given that they make up over 60 percent of the economy. However, SMEs face critical skilled labor shortages, he noted, commenting on the recent establishment of the National TVET Commission announced by Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.
He acknowledged that while TVET enrollment was increasing, gaps remained as many courses were still not aligned with industry needs. ‘To resolve this, more institutions should offer programs that equip Malaysia’s youths with job-ready skills. The establishment of the National TVET Commission to drive reform will provide a central reference for investors and industry, while implementing national TVET standards and policy,’ he said.
Mohammad Rizan added that Malaysia should urgently expand and realign its TVET ecosystem to meet growing student intake and rapidly evolving industry requirements. ‘This can be practically implemented as Malaysia’s economic priorities are clearly outlined in the NIMP 2030, 13MP, and NETR,’ he stated. The association also stressed the need for operational funding for the newly established National TVET Commission to coordinate standards, prevent course duplication, and align institutions with investor needs.
Without budget-backed reforms, Malaysia risks falling behind in supplying skilled workers for high-value industries and future economic growth. Elaborating further, Mohammad Rizan said Malaysia should expand the capacity of its TVET institutions and overhaul curricula to match fast-evolving industry needs as student enrollment accelerates.
Malaysia currently has more than 1,300 TVET providers across government agencies, private institutions, and state skills centers operating under about 12 ministries. ‘While this reflects the government’s ‘TVET for All’ agenda, the numbers are no longer adequate to absorb the surge in student interest. Enrollment has increased sharply in the past two years, but placements are still not sufficient. The issue is not only the number of institutions (but) many are offering similar courses that are no longer aligned with industry demand,’ he explained.
He stressed that the shortage lay in both institutional capacity and program relevance. ‘There are courses being duplicated across institutions even though industry needs have shifted. That is why we need more providers and, more importantly, more industry-relevant fields of study,’ he said. To address this, Mohammad Rizan called for a clear classification of institutions and specialization of programs in line with national economic strategies such as the NIMP 2030, 13MP, and NETR.
He suggested that public institutions focus on capital-intensive programs involving heavy machinery and advanced technology, while private providers could concentrate on lower-cost areas such as beauty, tailoring, and community-based skills. ‘A structured division will prevent duplication and ensure manpower is channeled into sectors with the highest demand,’ he said.
With the rapid growth of EVs, robotics, semiconductors, and high-value manufacturing, he said Malaysia’s readiness to supply skilled workers remains ‘in the grey area,’ meaning it is still uncertain. ‘These programs require major investment in facilities, equipment, consumables, and highly qualified trainers. It’s not just about updating the syllabus; the entire ecosystem has to evolve with the pace of technology,’ he added.