Prof Razali
Industry experts are calling for more targeted and sustainable allocations for technical and vocational education and training (TVET) in Budget 2026.
This, they say, is necessary to ensure the nation develops a skilled, adaptable and future-ready workforce that will strengthen the sector and advance the national agenda.
Universiti Tun Hussein Onn Malaysia Faculty of Technical and Vocational Education Prof Dr Razali Hassan said high investment in TVET is crucial to support upskilling and reskilling programmes in line with rapid technological and industrial changes.
“Greater investment will ensure Malaysians remain competitive,” he said, adding that TVET should not only produce skilled workers but also nurture entrepreneurs, especially in rural areas where such initiatives could drive employment and innovation.
Allocations for rural TVET entrepreneurial skills can empower youth and communities to become job creators, not just employees, he said.
Meanwhile, Bumiputra Private Skills Training Institution action committee chairman Nordin Abdul Malek stressed the urgency of ensuring access to financing for TVET students.
He highlighted the current funding strain faced by the Skills Development Fund Corporation (PTPK), which had exhausted nearly RM500mil by Aug this year, forcing a halt to new loan applications.
“Demand for TVET, especially the Malaysian Skills Certification pathway, has risen sharply.
“Yet allocations remain stagnant, raising questions about whether the push to expand TVET is matched by the financial support provided,” he said, adding that the National TVET Council’s target of producing 300,000 graduates per year by 2030 will be affected if funds are not forthcoming.
This situation, he explained, disproportionately affects school-leavers from B40 families, who risk being excluded from TVET opportunities despite it being one of the most effective pathways out of poverty.
Prof Massila
“Without financing, many youths, the largest voting bloc in the country, face the danger of becoming NEET (not in employment, education or training).
“From a policy perspective, this undermines efforts to eradicate poverty and build a skilled society. Without immediate intervention, the country’s skilled workforce gap will widen and the industry will continue to rely on foreign workers,” he said.
Nordin proposed a RM1bil allocation for PTPK in Budget 2026, with a more focused distribution of funds prioritising students in private training providers (ILKS).
“Increasing the overall allocation will not solve the problem unless the distribution structure is reformed to ensure greater equity and impact,” he added.
He also called for clearer double tax incentives for industry sponsorships of accredited trainees, capacity-building grants for ILKS, and special allocations for high-growth, high-value sectors such as electric vehicles, artificial intelligence, green energy, and automation.
“Additional funding is not a financial burden but a strategic investment for social stability, the future of the youth, and economic growth of the country,” he said.
Universiti Teknikal Malaysia Melaka (UTeM) vice-chancellor Prof Datuk Dr Massila Kamalrudin said TVET must no longer be seen as a second option but as a mainstream pathway that secures Malaysia’s future.
“TVET is a holistic ecosystem that must serve multiple segments of society.
Nordin.
“We have to think of TVET not just for school leavers, but also for mid-career workers, retrenched employees, and even early retirees who still have much to contribute to the economy,” she explained.
To this end, she recommended that Budget 2026 introduce targeted reskilling for experienced workers, including ex-military personnel, who could be retrained for green technology, drone operations, or advanced manufacturing.
“These groups already have discipline, leadership, and technical aptitude.
“With the right support, they can transition quickly into high-demand industries,” she added.
On inclusivity, she raised the importance of improving female participation in TVET, which she said currently stands below 40%, lower than in some developed countries that have reached up to 60%.
“Budget 2026 must be a catalyst to elevate women’s potential, not merely as statistics, but as key leaders in the digital, robotics, and renewable energy industries,” she said.
She also highlighted TVET’s potential to empower persons with disabilities, noting that Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi had reaffirmed the government’s commitment to broaden access through disability-friendly facilities and tailored training modules.
“Budget 2026 should translate this promise by providing dedicated funds for training infrastructure, incentives for employers, and equal career paths.
“When the disabled are given a fair chance to contribute, Malaysia’s TVET ecosystem will be more rich in human values,” she said.
