Kuala lumpur: 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 emphasized that this approach could propel Malaysia to emerge as a hub for skilled talent and attract foreign direct investments, making the country an ideal host for global companies.
According to BERNAMA News Agency, prioritizing TVET is key to meeting industry demand, including that of foreign investors, and in the process, safeguarding the country’s growth. However, Irwan 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, along with semiconductor expansions by Intel, Infineon, and Tata Electronics, would require the right talent pool.
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 noted that the challenge is even more urgent as the nation pushes to climb the value chain and tap into emerging sectors such as the green, blue, grey, and orange economies. These economies aim to achieve growth by reducing environmental risks, sustainably utilizing 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. This led to 110,000, or 36 percent, of underemployment in the labour market in those years. He emphasized 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.
To build a skilled workforce, Irwan mentioned that Malaysia’s TVET ecosystem should scale up in three areas: capacity, which involves more places, labs, and industry-grade facilities; quality, with up-to-date modules aligned with technologies and industry needs; and pathways incorporating clear progression into higher TVET, universities, and lifelong learning.
Irwan concluded 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,’ he said. While cross-border talent can plug short-term gaps, long-term resilience hinges on a demand-driven TVET ecosystem under the MADANI Economic Framework. In the future, Malaysia must not only be a place where goods are made but must also be about ‘Made by Malaysia’ powered by homegrown skills, innovation, and talent.