TVET: A skills partnership between China and Malaysia

MALAYSIA is on its way to becoming a high-income nation. Based on the World Bank’s 2025 analysis, Malaysia’s economic growth trajectory could lead it to attain “high-income” status in 2028.

Nonetheless, the nation still has some areas to focus on to achieve this status, namely, tackling youth underemployment and unemployment, which affects the welfare of the young workforce. Human capital is the cornerstone of a country’s economic growth and welfare. Therefore, developing, upskilling and reskilling the labour force is imperative to sustain economic prosperity in this digitalised world economy.

The Malaysian government has taken several steps to enrich the labour force. One such effort is the (re)introduction of technical and vocational education and training (TVET). This is evidenced in the 13th Malaysia Plan (2026-2030), which states that TVET will be integrated to meet industrial talent demands. According to this Plan, these initiatives aim to achieve an average annual growth in labour productivity of 3.6%. At the macroeconomic level, higher labour productivity directly contributes to sustained economic growth. Productivity gains enable an economy to expand output without a proportional increase in labour or capital inputs, thereby raising potential output and long-run growth rates. Over time, productivity improvements are a key driver of economic growth, making it essential for raising living standards.

TVET has been part of the Malaysian education system for many years. However, the perception of this programme is that it produces a “low-skilled” workforce with limited career prospects. Nonetheless, under the National TVET Policy 2030, TVET will now focus on five high-growth and high-value (HGHV) sectors. These sectors are energy–transition–based industries, technology- and digital-based industries, high-value electrical and electronics industries, industrial and agro-based sectors, and rare-earth industries. This emphasis would produce graduates who can secure high-skilled jobs and engage in high-impact manufacturing fields such as renewable energy, future mobility through electric vehicles, and the digital economy.

While Malaysia is taking many steps to enhance TVET locally, it has also engaged international partners, with China becoming a dependable partner. In recent years, thousands of Malaysian youths have been offered TVET placements in China through structured “train-and-place” programmes. One such programme is the SIYUAN Skill Advancement and Employment Programme. This programme focuses on transit rail, e-commerce, logistics, and cybersecurity. Reported employability outcomes have been strong, highlighting the effectiveness of skills-based, industry-linked training. The Malaysia-China TVET Industry Education Alliance is yet another initiative implementing a “train-intern, job-placement” approach. These programmes usually include classroom learning, practical industrial training, and job placement services. In both instances, these initiatives reflect a two-fold strategy. First, participants are equipped with skills that are relevant to the industry. This reduces skill mismatches and enhances individual employability. Second, the job placement component guarantees that the skills gained are quickly applied in suitable roles, preventing underutilisation. This would greatly reduce instances of youth underemployment and unemployment, as young workers are effectively matched to jobs that align with their training and skills.

Moreover, these programmes also provide human capital gains to the nation. The skills participants gain are industry-relevant, leading to improvements in labour productivity and supporting high-growth, high-value sectors. In the short and medium run, the economy will experience higher economic growth and possibly stronger macroeconomic fundamentals. In the long run, the nation will be equipped with a high-skilled workforce in this digital era, capable of supporting structural economic transformation and thus forming a resilient economy. This reinforces TVET's role as a central pillar of sustainable and inclusive economic growth.

Beyond individual training placements, China is also supporting Malaysia at an institutional level. The joint initiative between the National Association of Skilled Workers (Belia Mahir) and the China Global Professional and Technical Certification Centre (CGPTC) involves trainer upskilling and a shared certification in accordance with Chinese professional standards. This initiative is important because it shifts Malaysia–China TVET cooperation from short-term skills acquisition to long-term institutional capacity building. It helps Malaysia strengthen its own TVET ecosystem rather than relying solely on overseas training. In addition, this collaboration strengthens the quality and international recognition of Malaysia’s TVET system through trainer upskilling and shared certification aligned with Chinese professional standards. Upgrading trainers improves the effectiveness of skill transfer, and shared certification systems help standardise competency levels internationally, boosting both labour mobility and employer trust. On a larger scale, such institutional cooperation helps Malaysia achieve its aim of building a highly skilled, future-ready workforce capable of fulfilling the needs of advanced industries, while also addressing structural skills mismatches in the labour market.

Malaysia’s skills partnership with China aligns closely with both countries' national priorities. China’s Belt and Road Initiative (BRI) supports TVET as part of its broader objective to promote sustainable economic cooperation and development among participating countries. Malaysia, on the other hand, aims to raise TVET participation, improve graduate employability, and position itself as a destination for high-value investments in manufacturing and digital industries. A skilled workforce is essential for this transition, and it is attainable through the skills partnership with China. While Malaysia is taking affirmative action to promote TVET through the National TVET Policy 2030 and the National Education Blueprint 2026-2035, there must be a societal shift in mindset towards the TVET pathway. We need to move away from the belief that TVET offers only limited career advancement and recognise that it can provide stronger career mobility and highly sought-after skills.

Dr Justina Joseph Jeyaraj is an Assistant Professor at Tunku Abdul Rahman University of Management and Technology. The views expressed here are entirely the writer’s own.

The SEARCH Scholar Series is a social responsibility programme jointly organised by the Southeast Asia Research Centre for Humanities (SEARCH) and Tunku Abdul Rahman University of Management and Technology (TAR UMT).