Regional Conference on Human Resource Development
Through TVET as a Development Strategy in Asia
2-3 August 2011
Colombo
SRI LANKA
Key Reforms in Revitalising
Technical and Vocational Education and Training (TVET) in Malaysia
Dr. Pang Chau Leong
Department of Skills Development,
Ministry of Human Resources, Malaysia
Contents
Page
Abstract
3
1.0
Introduction
4
2.0
Current Status of TVET in Malaysia
4
3.0
Revisiting the TVET Framework
7
4.0
Conclusion
10
5.0
References
11
2
ABSTRACT
Malaysia has embarked on various initiatives to propel the country towards its goal of
becoming a high income and developed economy by 2020. The cornerstone of this aspiration
is the availability of highly skilled human capital, the lack of which has hindered the nation’s
endeavour to move out from the middle income trap, into a high income economy. In this
context, Technical and Vocational Education and Training (TVET) plays a pivotal role in
providing the skilled workforce required for the country’s economic transformation.
The full potential of the national TVET system in Malaysia, however, has been hampered by
the perception that it mainly caters to the less academically-qualified and does not represent
careers of choice. It is also handicapped by a largely fragmented TVET delivery system.
Amongst recent measures to revitalize the national TVET system include raising its profile,
rationalizing its framework and structure, improving its quality and performance, as well as
scaling-up private skills training provision.
3
1.0
INTRODUCTION
For Malaysia to remain competitive in an increasingly challenging global environment and to become
a high-income nation by the year 2020, it is imperative that it embarks on an integrated approach
which involves government and economic transformation programmes. These programmes attach
great importance on intensifying human resource development in order to produce a workforce which
is well-equipped to face a competitive global market.
Malaysia currently has a workforce of about 12 million, of which only about 28 percent are
highly-skilled, whilst 60 percent are employed in small and medium-sized enterprises (Malaysia,
2010; NEAC, 2010). The Economic Transformation Programme which is introduced in 2010 is
projected to create 3.3 million new job openings by 2020, of which at least 40 percent is expected to
require technical and vocational education and training (TVET) qualifications (PEMANDU,2010).
Consequently, TVET has been regarded as one of the most critical drivers for the country’s
transformation from a middle- to high-income nation. In this paper, the conceptual definition of
TVET cuts across post-primary, secondary, and tertiary educational levels, and all sectors including
formal or school-based, enterprise-based, informal or even apprenticeship.
2.0
CURRENT STATUS OF TECHNICAL AND VOCATIONAL TRAINING IN
MALAYSIA
2.1
Background of TVET in Malaysia
TVET in Malaysia could be traced back to the late 1890s when trade schools were being considered to
prepare local youths to work as mechanics and fitters on the national railways. In 1906, a technical
school was established to train technical assistants for the Railways and Public Works Department
(Maznah, 2001). In 1919, the government set up a committee to review the needs for technical and
industrial education, and it put forward measures which included establishing an agricultural school
and providing training facilities for the Forest Department (Loh, 1975). In 1926, a Federal Trade
School was established in Kuala Lumpur to provide full-time three-year courses to train mechanics,
fitters, machine workers and other technicians (Ahmad, 2003; Loh, 1975). The Education Department
took over the school in 1931 to serve the needs of public departments as well as business enterprises
such as mines, estates and private firms. Later, three other trade schools were built in Penang, Ipoh
and Singapore (part of Malaya at that time) to prepare apprentices as artisans in trades such as
mechanics, plumbers, fitters, electricians and blacksmiths. These developments marked the expansion
of institutionalised vocational training in Malaya which was geared to meet the needs of the country’s
industry.
In 1955, two years before Malaya gained her independence, the government set up an
Education Committee to review the existing education system and to formulate a new system for postindependence Malaya. The committee published the Razak report in 1956 which promoted the policy
of establishing a vocational stream alongside the general secondary school system (Wong & Ee,
1975). In 1960, the Rahman Talib Report led to the segregation of the secondary school system into
academic and vocational streams (MOE, 2007). Junior technical (trade) schools were converted to
secondary trade schools which were later converted to secondary vocational schools in 1968. In 1979,
another high-powered committee headed by the Deputy Prime Minister at that time, Dr. Mahathir
Mohamed, led to the Cabinet Report of 1979 which reaffirmed that the country’s upper secondary
education should comprise of both academic and vocational streams.
Based on a review of historical developments, Ahmad (2003) observed that the Malaysian
4
TVET had progressively developed into three different streams, namely higher education;
technical and vocational education; and skills training (refer Table 1).
Stream or
Pathway
1. Higher education
Institutions
Workforce Preparation
Universities and other
Professional and managerial
institutions of higher learning,
personnel such as engineers,
both public and private
architects, and surveyors.
2. Technical and
Polytechnics, technical
Supervisory personnel such as
vocational
colleges and (more recently)
technical assistants and
education
community colleges
supervisors.
3. Vocational skills Skills training institutions,
Skilled and semi-skilled workers.
training
public and private
Source: Paraphrased and tabulated from Ahmad (2003, p.6)
Table 1: Main Streams of the Education and Training System in Malaysia.
A similar description of the Malaysian education and training system was made by Rashid &
Nasir (2003), who highlighted demarcations between: (a) Tertiary or higher education in universities
and other higher educational institutions; (b) Technical and vocational education undertaken largely in
the formal school system under the Ministry of Education; and (c) Post-secondary TVET, including
skills training, undertaken through the skills stream of the secondary vocational schools but
predominantly by public and private skills training institutions.
Several other studies have highlighted that skills training based on National Occupational
Skills Standards (NOSS) had increasingly become a significant component of the national system
(Pang, 2008; 2010). The ‘Basic Study on Designing a Dual Training Scheme in Malaysia’ undertaken
from 1997 to 1999 by a large team of German consultants, described the Malaysian system, excluding
tertiary and higher education, in terms of three subsystems (Blumenstein, et al, 1999):
1st subsystem: Technical education and vocational training undertaken in schools at the upper
secondary level under the Ministry of Education (MOE). It was completely integrated into the
general education system, leading to the Malaysian Certificate of Education as the leaving
qualification.
2nd subsystem: Technical and vocational training that did not come under the MOE but were
administered by other Federal Ministries such as the Ministry of Human Resources, Ministry of
Youth and Sports, and Ministry of Entrepreneurial Development as well as private training
institutions.
3rd subsystem: The standardisation and certification of occupational skills based on the National
Occupational Skill Standards and Certification System. It started with a three-level skill
certification system (basic, intermediate and advanced) but in 1992, a new 5-level skills
qualification framework was introduced, followed by the adoption of an accreditation approach in
1993. The accreditation of training centres and their training courses was conducted by the
National Vocational Training Council.
5
Another study known as the ‘Strategic Review of Technical Education and Skills Training
in Malaysia’ was undertaken by Australian consultants as part of an Asian Development Bank
technical assistance project (DEETYA, 1998, p.1). The study confirmed that vocational education
under the purview of the MOE was one major component of the country’s TVET system whilst
training conducted by the other ministries and agencies based on NOSS formed the other major
component. A more recent study undertaken on behalf of the World Bank by Pillay (2005)
categorised Malaysia’s TVET system into five main pillars, which are outlined below:
st
1 pillar: Public higher education system which caters mainly to SPM school-leavers, that is
those who do not take up pre-university studies; excludes universities and university colleges,
but includes polytechnics and community colleges under the Ministry of Higher Education,
technical schools under the Ministry of Education as well as training institutions under the
Ministry of Human Resources, Ministry of Entrepreneurial Development and Ministry of Youth
& Sports.
nd
2 pillar: Malaysian Skills Qualifications Framework, a five-tiered skills certification system
based on the NOSS which was introduced by the National Vocational Training Council in 1993.
rd
3 pillar: Company-based training, which comes under the Human Resource Development Fund
established in 1993 to promote the training of employees.
th
4 pillar: Private higher education, largely under the purview of the Private Higher Education
Institutions Act 1996, and accredited by the National Accreditation Board.
th
5 pillar: Continuing education and training which caters to the demands of employers,
community or society at large for further education, skills upgrading, retraining, career
advancement and enrichment.
2.2
Policy Framework for TVET
Malaysia’s national development policies and plans have repeatedly emphasized the criticality of
human resource development in supporting the country’s growth. This is clearly embodied in the
‘Malaysia: The Way Forward’ statement in 1991 which challenges the country to achieve developed
nation status by 2020 (Mahathir, 1991):
The most important resource of any nation must be the talents, skills, creativity and will
of its people… Our people are our ultimate resource.
The Third Outline Perspective Plan (OPP3), 2001-2010, emphasizes the need for a fundamental
realignment in the policies and strategies of human resource development in order to support the
country’s shift towards a knowledge-based economy (Malaysia, 2001a). Under the OPP3, the
education and training priorities include: (a) introducing a new dual training approach; and (b)
promoting lifelong learning.
In the previous national five-year development plan, the Ninth Malaysia Plan (9MP), 20062010, the Malaysian Government presented the National Mission that outlined the country’s priorities
for the next 15 years. One of the five key policy thrusts of the National Mission was “to raise the
capacity for knowledge and innovation and nurture first class mentality” (Malaysia, 2006a, p.30). Its
main focus was to expand the accessibility and quality of the country’s education and training system,
through redesigning training programmes in line with changing industry requirements. Under the
9MP, a new National Dual Training System was introduced through consultations with stakeholders
including industry associations, and a national committee known as the Cabinet Committee on Human
6
Capital Development was established to guide policies and strategies related to education and
training.
In the current Tenth Malaysia Plan (10MP), 2011-2015, TVET continues to be considered as
critical for supporting the country’s economic development. Four policy guidelines have been put
forward to mainstream and elevate access to quality TVET in Malaysia: (a) Improving the perception
of TVET and attracting more trainees, through more intensive national media campaign; (b)
Upgrading and harmonising TVET curriculum quality in line with industry requirements, by
initiatives which include standardising TVET curriculum, recognising the national skills qualification,
and establishing a new Malaysian Board of technologists; (c) Developing highly effective instructors,
including to establish a new Centre for Instructor and Advanced Skills Training; and (d) Streamlining
the delivery of TVET, including to review the current funding approach of TVET and to undertake
performance ratings of TVET institutions.
3.0
REVISITING THE TVET FRAMEWORK
3.1
Transforming the Malaysian Economy
Four (4) main thrusts have been put in place to transform Malaysia into a high income by 2020,
namely the New Economic Model; the Government Transformation Programme; the Economic
Transformation Programme; and the Tenth Malaysia Plan (10MP).
New Economic Model (NEM)
The main goal of the NEM is to increase country’s per capita gross national income from USD6,700
or RM23,700 in 2009 to at least USD15,000 or RM48,000 by 2020 (PEMANDU, 2010). It is also
premised on the principles of ‘inclusiveness’, enabling all communities to fully benefit from the
wealth of the country, and ‘sustainability’, to meet present needs without compromising future
generations. The NEM embarks on 8 strategic reform initiatives which seek to put the Malaysian
economy on a stronger footing (NEAC, 2010): (a) Re-energising the private sector; (b) Developing a
quality workforce and reducing dependency of foreign workers; (c) Creating a competitive domestic
economy; (d) Strengthening of the public sector; (e) Transparent and market friendly affirmative
action; (f) Building the knowledge-based infrastructure; (g) Enhancing the sources of growth; and (h)
Ensuring sustainability of growth.
Government Transformation Programme (GTP)
The GTP was introduced in 2010 to transform the Government’s effectiveness in the delivery of
services. It incorporates six National Key Result Areas: Reducing crime; fighting corruption;
improving education outcomes; raising living standards of low-income households; improving rural
basic infrastructure; and improving urban public transport (PEMANDU, 2010)
Economic Transformation Programme (ETP)
The Economic Transformation Programme is a comprehensive effort to propel Malaysia’s annual real
growth target of about 6 percent can be achieved in the next 10 years (PEMANDU, 2010). The
projects and initiatives identified in the ETP are expected to transform Malaysia into a high-income
economy with a Gross National Income of RM1.7 trillion in 2010 compared to RM660 billion in
2009. To achieve this, the ETP focuses on 12 National Key Economic Areas where Malaysia has
distinct competitive advantages. To date, 131 Entry Point Projects have been identified for
7
implementation. These projects are expected to create 3.3 million new jobs, of which 60 percent will
be in the middle-income and high-income bracket.
Tenth Malaysia Plan (10MP), 2011-2015
In Malaysia, only 10 percent of students enrol in upper secondary technical and vocational streams. In
addition, more than 100,000 school-leavers join the labour market annually, after 11 years of formal
schooling without pursuing further education or training. Consequently, there is a huge opportunity
for TVET providers to attract school-leavers to take up TVET. During the Plan period of 2011-2015,
the focus is to improve the value proposition and attractiveness of TVET to prospective students,
providers and industry. A national media campaign is being rolled-out to improve public awareness
and perception of TVET as well as to re-brand TVET as an attractive career option.
In addition, the 10MP emphasises the development of highly effective TVET instructors and
provision of more flexible pathways of entry into the profession by experienced industry personnel. A
new Centre for Instructors and Advanced Skills Training is also being established. On standards and
curriculum development, the Department of Skills Development has been designated as the agency to
develop and standardise TVET curriculum, and to ensure that the curriculum meets industry
requirements and is aligned with national economic priorities. To enhance standardisation and
recognition of TVET certification, the Malaysian Skills Certification will be adopted as the national
certification, whilst a new Malaysian Board of Technologists will be established to accelerate the
professional development of TVET qualification-holders. On streamlining the delivery of TVET, the
current funding approach is under review in order to shift it towards demand and performance-based
approach. Towards this end, a system has been developed to rate the performance of public and
private TVET institutions.
3.2
Key Issues and Challenges
Poor perception and recognition of TVET
TVET in Malaysia has always been considered by the public at large, and parents, as the career choice
for the less academically-qualified. This perception has been aggravated by the lower academic
requirements stipulated for admission into TVET programmes and the limited prospects for further
educational and professional development of TVET graduates. The societal stigma of TVET has also
been created by the impression that the primary objective of vocational education and training is to
cater for school drop-outs, rather than as an important strategy to train skilled workers for the
employment market and for sustainable livelihoods. In addition, TVET-based qualifications and
careers are still poorly perceived and recognised in the workplace. Many employers do not recognise
the certification due to the highly fragmented landscape, with many ministries and agencies issuing
certifications.
Multiplicity of provision, certification, standards and curricula
TVET provision in Malaysia is undertaken by different ministries, agencies and organisations, both
public and private, with a multiplicity of certification, standards and curricula. The various TVET
providers often operate as silos and do not taking into account programme offerings in the broader
context, resulting in overlapping courses and institutions as well as creating confusion for students
and employers. This situation has implications for the standardization of training and qualification,
cost-effectiveness, quality assurance, recognition of prior learning, and the further education of TVET
graduates. The current governance structure still lacks effective coordination, sharing of resources,
and articulation within the overall system. There is also no single oversight body to provide overview
of TVET landscape. The diverse TVET management structures and the sharing of supervisory
responsibilities by various government bodies and ministries account for some of the inefficiencies in
8
the system like duplication and segmentation of training, and the absence of a common platform for
developing coherent policies and joint initiatives.
Weak monitoring and evaluation
Although fundamentally designed to meet observed or projected labour market demands, the current
TVET programmes in Malaysia are largely supply-driven and still lack giving emphasis to match
training to available jobs. Training institutions also seldom track the employment destination of their
graduates. Consequently, the institutions have not taken advantage feedback from past trainees on the
quality of the training they have received to improve their curricula and training packages. In short,
the implementation of outcome evaluation and tracer studies that can improve the market
responsiveness of training programmes is still lacking.
Lacking in efficiency and quality
In general, TVET provision in Malaysia is still largely concentrated on lower-level skills qualification
whereby more than 70 percent of graduates are at Malaysian Skills Certificates, Levels 1 and 2.
Although, TVET Institutions are running at high operating levels, many are not yet operating at full
capacity. The overall funding structure also does not fully support quality and performance of TVET
providers.
3.3
Recent Measures for Revitalising the TVET System
3.3.1
Raising the profile and acceptance of TVET
The SkillsMalaysia re-branding exercise was announced by the Prime Minister of Malaysia on 11
January 2011 as an Entry-Point Project under the Economic Transformation Programme to make
TVET a popular choice for, and more appealing to, school-leavers and workers alike. A national
media and promotion campaign was launched by the Deputy Prime Minister on 5 May 2011campaign
to emphasise the career prospects and advantages of a TVET qualification in order to lift the society
stigma associated with TVET and to roll-out a series of road shows throughout the country to provide
information and create awareness on opportunities in the TVET sector.
3.3.2
Rationalising TVET framework and structure
Involvement of many ministries and agencies in the TVET sector, with multiple certification levels,
standards and students funding model has created complexity in the sector. The limited cooperation
between different ministries and agencies leaves little flexibility for students to move to higher levels
across institutes. In the private sector, TVET institutes are generally small and offer lower
certifications. In addition, most students entering the stream find it difficult to proceed to higher levels
of education and qualification because the TVET pathway has been largely developed for the less
academically-qualified.
There is clearly the need to re-define involvement of ministries and agencies in order to
remove silos and rationalise the diverse curricula and funding approaches. A new governance
structure is being considered to provide oversight and coordinate across all related ministries and
agencies, over maters which include curriculum development, performance, planning of provisioning
and fund allocation. It is also important to make the TVET pathway more attractive for further
learning and professional opportunities as well as to provide flexibility for students to articulate across
different providers.
9
3.3.3
Scaling-up private skills training provision
To support the country’s Economic Transformation Programme, seven (7) key initiatives under the
National Key Economic Area for Education have been put in place: Promoting closer links with
industry; harmonising skills training by regulatory reform; increasing availability of demand-side
funding; conducting awareness campaign; articulating the professional pathway; increasing the
number of qualified instructors; and assisting providers in attracting foreign students.
To strengthen links with industry, industry lead bodies are being identified to guide TVET
development in each skills sector. Measures to harmonise skills training include establishing a new
Malaysian Board of Technologists, whilst the Skills Development Fund has been made available to
increase access to quality training courses in high-performing training providers. Various efforts have
been taken to articulate the professional pathway for TVET by allowing the Malaysian Skills
Certificates to progress to selected degree programmes. To increase the number of qualified TVET
instructors, qualified and experienced industry personnel have been fast-tracked to become TVET
instructors. Efforts are currently underway to market SkillsMalaysia internationally and to review
related regulations and procedures in order to attract foreign students to enrol into Malaysia’s TVET
systems.
4.0
CONCLUSIONS
Malaysia aspires to attain the developed nation status by the year 2020. It has also geared itself
towards moving up the value chain to become a high income economy. A skilled workforce is critical
to achieving this goal. With the introduction of the New Economic Model and Economic
Transformation Programme, demand for skilled workforce is expected to outgrow supply. By 2020,
an additional 3.3 million jobs will be created, of which 1.3 million will require TVET qualifications.
Many issues currently faced by key stakeholders need to be addressed including: For students, TVET
is currently not a mainstream education option and typically not a viable alternative to entering the
workforce as it does not provide clear educational and professional pathways; TVET providers are
somewhat confused with the fragmented TVET landscape with numerous providers from various
ministries resulting in multiple qualifications systems and non-uniform curricula standards; and
employers, at large, still do not fully recognize and give commensurate value to TVET qualifications.
Consequently, the national TVET system requires to be transformed in terms of its efficiency, quality
and performance in order to equip the country’s workforce with the competencies required for a
competitive and knowledge-based economy. In this regard, a comprehensive set of initiatives have
been developed, encompassing: (a) Rebranding TVET to mainstream and improve perception of
TVET; (b) Rationalising and streamlining the TVET sector in terms of its provisioning, operating
model and funding structure; and (c) Scaling up private skills training provision in order to develop a
more vibrant TVET industry in Malaysia.
10
5.0
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