Private sector to lead in TVET training

MRCB said it would invest in TVET centres and collaborate with industry skills accreditation and development institutions such as the Construction Industry Development Board.

KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) will enhance technical and vocational education and training (TVET) centres’ construction-related programmes and create customised TVET and upskilling programmes, which will focus specifically on modular construction.

Modular construction is a sustainable construction method that reduces waste and carbon emissions while reducing the industry’s reliance on foreign labour.

In a statement, the engineering and construction group said it would invest in TVET centres and collaborate with industry skills accreditation and development institutions such as the Construction Industry Development Board.

The revised Budget 2023, announced by Prime Minister Datuk Seri Anwar Ibrahim yesterday, had proposed that leading companies in the private sector to partially or fully take over the operations of TVET institutions such as community colleges, public skills training as well as national youth skills institutes to provide training programmes that meet their needs.

In citing examples, Anwar said Petroliam Nasional Bhd leads the oil and gas cluster in Pengerang, Kimanis, Batu Rakit and Miri; DRB-Hicom Bhd for the automotive cluster in Pekan; Sunway Bhd for the hospitality cluster; and MRCB for the construction cluster.

Meanwhile, a Sunway spokesperson told StarBizWeek that the group would participate in the TVET programme and is “awaiting further details before deciding on the specific aspects of participation.”

In a statement, MIDF group managing director Datuk Charon Wardini Mokhzani said: “Initiatives such as the introduction of a public-private partnership model for the TVET space and the allocation of RM250mil to promote Malaysian tourism are set to bring about positive economic returns.”

Also, MIDF Research opined that the revised Budget 2023 aims to safeguard the continued well-being of vulnerable segments in light of the high cost of living and spur income growth.

“For example, measures relating to food security, public-private partnership on TVET and reduction in personal income tax rate by two percentage points for those with taxable income from RM35,001 to RM100,000 can be seen as evidence of this.”

Meanwhile, MRCB also stated that by investing in enhancing the TVET programmes, the group will not only ensure it will have a steady pool of talent to facilitate its expansion into modular construction but will also help grow the construction industry’s skilled workforce and support this important shift to more innovative and sustainable construction methods.

The new TVET initiative is in addition to MRCB’s existing collaboration with the Youth and Sports Ministry and the Malaysian Prison Department, in a programme called Peka (Peluang Kedua Anda), which provides training, upskilling and employment opportunities for selected offenders who are at the tail-end of their prison sentences.

This programme is designed to train and upskill low-risk offenders and ex-offenders and provide employment to reintegrate them back into society. The programme has benefited 350 inmates to date.

Meanwhile, Anwar said while data shows that 90% of TVET graduates get a job, however, 90% of them earn a low salary of around RM2,000 per month.

“However, the government spends up to RM6.7bil for TVET. This is unacceptable and reforms need to be implemented,” he said.

He noted that companies such as Intel Corp, Motorola and Inari Amertron Bhd have taken advantage of the Penang Skills Development Centre to organise training programmes based on their needs.

“The government intends to pilot this model involving federal TVET institutions with a target of 50 companies mainly from among government-linked companies (GLCs),” said Anwar.

The Prime Minister added that this reform is able to use government resources more effectively for the production of TVET graduates who meet the needs of industries.

“Public-private collaboration through a new approach like this will continue to be explored for other areas or government services,” he said.

Meanwhile, the National Dual Training Scheme will be strengthened with an allocation of RM50mil to benefit over 8,000 trainees.

The Academy in Factory programme will be implemented to provide opportunities for about 50,000 trainees to carry out their training while working in factories.

Under the revised Budget 2023, the Social Security Organisation (Socso) will provide incentives to the employers of 17,000 TVET graduates.

Socso will allocate RM45mil in order to provide RM600 per month for three months, in addition to the salary offered to TVET graduates.

Socso will also provide incentives for employers to employ vulnerable groups such as the disabled, ex-convicts, the homeless and the chronically unemployed up to RM600 per month for up to three months.

Also, the government will cover the training fee of up to RM4,000 for gig workers to undergo the micro credentials skills improvement programmes.

Socso will also provide an allowance of RM300 for three months to replace the income of gig workers who are active and undergoing training programmes.

Under the revised Budget 2023, RM40mil is provided for the benefit of 30,000 gig workers.

Also, HRD Corp, with a RM1bil fund, will implement skills training programmes for employees working for registered companies that have accumulated levies.

Meanwhile, GLCs will offer 35,000 job opportunities to youths, TVET graduates as well as vulnerable groups and veterans.

Anwar also pointed out Sime Darby Plantation Bhd had proved that local workers are willing to work in oil palm plantations with salaries of at least RM3,000 and a more attractive work environment, aided by mechanisation and adapting automation.

“Their target is to employ 100% local workers by end-2027,” he said.

The government will provide RM50mil in matching grants to encourage automation in the plantation sector through the use of robotics and artificial intelligence and the hiring of skilled local workers.