PUTRAJAYA: The government has agreed to allow up to RM50mil from high-impact programme funds under the Skills Development Fund Corporation (PTPK) to be channelled into TVET 2.0, says Datuk Seri Anwar Ibrahim.
The Prime Minister said the allocation is part of a broader push to strengthen technical and vocational education and training (TVET) as a key pillar of Malaysia’s workforce development.
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“The funds have been approved for TVET 2.0 development, but it must be matched by active participation from employers and industry stakeholders,” he said.
The fund, drawn from PTPK’s high-impact programme pool, comes under a wider RM650mil allocation set aside for 2026 in Budget 2026.
“Malaysia’s TVET system has made significant progress and is now regarded among the leading models in Asean, reflecting a rapid transformation over the past three years,” he said.
He credited the progress to clearer policy direction and stronger focus, including the special role given to Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi in driving the agenda.
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“Three years ago, we started giving dedicated attention to TVET, and since then the improvement has been extraordinary,” he said.
Anwar said the government’s focus is not only on strengthening traditional training pathways, but also on expanding into emerging fields such as artificial intelligence (AI), digital technologies, crypto-related industries and the energy transition.
He said TVET 2.0 marks a shift away from outdated perceptions that only university education leads to high-value careers, stressing that vocational pathways are now equally competitive.
“This is a wise decision because the world has changed. AI, crypto and the energy transition are shaping entirely new fields that did not exist 20 or 30 years ago,” he said.
However, Anwar acknowledged that gaps remain between industry needs and current training standards, particularly in high-tech sectors involving global players such as Nvidia, AWS and Infineon.
He said while collaboration between universities and industry exists, more structured involvement from TVET institutions and government training bodies is needed to meet evolving technical demands.
He said companies, including large profitable local firms, must take greater responsibility in providing structured training opportunities rather than relying solely on government funding.
“If they need 60 engineers in two years, they should also help train them now.
“Investors consistently emphasise the need for a stronger skilled workforce, reinforcing the urgency of expanding TVET capacity,” he said.
