We must move beyond asking how many people we can train, and focus instead on developing new capabilities, solving industrial problems and generating greater economic value from our skills investments.
Asean Future Workforce Council executive chairman Datuk J. Palaniappan (pic) said the future of technical and vocational education and training (TVET) cannot be measured simply by the amount of money allocated, the number of training places offered or the number of certificates issued.
It must, instead, be measured by our ability to develop new capabilities, accelerate industrial innovation, improve productivity and prepare Malaysians for tomorrow’s jobs and technologies.
“Budget 2027 provides limited detail on how much of the overall allocation will be for R&D, training innovation, emerging technologies and development of new industry-led capabilities,” he said, suggesting a dedicated innovation and productivity fund comprising TVET institutions, universities, manufacturers and technology companies, be set up to develop solutions to real-world issues.
Rather than providing training programmes alone, this fund could support collaborative projects in areas such as industrial automation, robotics, AI adoption, advanced manufacturing, energy efficiency and new production technologies.
“Funding should be awarded competitively and linked to clear outcomes, including technology adoption, productivity improvements, industry-recognised competencies and progression into higher-skilled employment.
“This would give TVET institutions a stronger role in supplying talent, and in strengthening the technological capabilities of our industry,” he said.
He also called for a stronger framework for measuring the impact of skills investments.
Relevant indicators should include training completion, employment in related occupations, wage progression, employer satisfaction and measurable productivity gains, he offered.
“Funding should also reward innovation and results, not just enrolment numbers. Institutions and providers that demonstrate effective industry partnerships, strong employment outcomes and successful adoption of new technologies should have opportunities to scale their approaches.”
The country, he said, needs a more forward-looking approach to skills planning.
Too often, training responds to vacancies that already exist, rather than anticipating the capabilities businesses will need as industries evolve, he said, adding that a stronger national skills intelligence mechanism could bring together employers, industry, investment agencies and training institutions to identify emerging occupations, technology trends and critical skills shortages.
“This intelligence should inform curricula, instructor development, equipment investment and professional certification.
“It should also support modular and stackable qualifications that allow workers to update their competencies throughout their careers without repeatedly starting from scratch.”
Equally important, he said, are structured industry attachments, professional development and partnerships with technology providers.
A mindset shift across government, education and industry is also needed, he said.
“The next step is to ensure that this investment drives a more ambitious transformation.
“Ministries must coordinate their investments; institutions must be prepared to innovate; employers must contribute their expertise and offer training opportunities; and funding mechanisms must reward measurable progress,” he said.
Pertubuhan Penggerak Huffaz Berkemahiran Selangor founder and advisor Datuk Ahmad Tajudin said some 70% of the RM8bil TVET allocation is for salaries and emoluments, as well as rising consumable costs.
“This leaves limited funding for new equipment, facility upgrades and maintenance, as well as consumables needed for training programmes,” he said, adding that an additional RM4bil would enable the sector to meet these operational needs while ensuring training facilities and equipment are well-maintained and updated.
Persatuan Pusat Latihan Kemahiran SLDN Sabah & W.P. Labuan president Nelson Mosinoh is concerned that Budget 2027 did not specify an allocation for Akademi Dalam Industri, an industry-driven skills training initiative that connects training, employment and nationally recognised skills certification, while the Malaysian Institute of Accountants said the emphasis on upskilling, reskilling, professional development and workforce development initiatives are aligned with industry needs and particularly relevant as the accountancy profession continues to evolve in response to digitalisation, artificial intelligence, sustainability and changing business expectations.
