ICT Sector and Skills
Development
in Malaysia
Malaysia
Overview
Malaysia is a developing country with a per capita income of RM9,786 (US$3,914) in
1995. The Government of Malaysia has adopted, as a principal goal, the creation of a
fully "developed" economy by the year 2020 (so-called “Vision 2020”). In the effort to
achieve developed country status, one of the strategies undertaken by the government
involves the development of the country's most important asset - its human resource base.
In order to face the challenges of the twenty-first century, new skills and fresh
knowledge, coupled with exemplary attitudes, must be learned and re-learned on an
ongoing basis throughout life. This learning will take place both inside and outside the
formal education system.
Trends in the ICT sector
Malaysia's economy has been quite literally transformed within the last decade, moving
rapidly away from a low-technology, commodity-based environment to one where
manufacturing and the services sectors are employing higher and more sophisticated
technology. Rapid industrialisation, coupled with a shift towards more capital intensive
production, has changed human resources development in Malaysia. Currently, the
country is facing a shortage of trained manpower, particularly in the fields of engineering
and management.
Skills shortages
“Currently, the country is facing a shortage of trained manpower, particularly in the
fields of engineering and management. Foreign expertise is still very much needed for
development …”
The government, though concerned about rapid industrialisation and concomitant needs,
recognizes that the required foundation in science and technology to support this
development has yet to be acquired. Foreign expertise is still very much needed for
development, as are an array of human resource development policies and programs that
will continuously upgrade and improve the education and training system. In this context,
there are three important dimensions.
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Strengthening the higher education system as it pertains to the teaching of science and
mathematics and the English language, as well as to the broad expansion of vocational
and technical education;
 Master state-of-the-art management techniques and systems through entrepreneurial
and management development programs;
 Equip its workforce with training in the latest technological and industrial processes.
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Within this framework, retraining and skills upgrading of the present workforce must be a
priority. These three dimensions, when implemented in an integrated fashion, will support
the strategies and programs designed to dovetail with the objectives of Vision 2020.1
The government has permitted the entry of foreign lecturers in order to overcome the
shortage of experts. (It has also stipulated that half of the income received by non-resident
lecturers who lecture in approved institutions and organisations in selected disciplines
will be exempt from income tax.)
Education and training status
Education is one area which is accorded high priority in national development with about
15% of total public development expenditure allocated for this purpose under Malaysia's
five-year development plan. Literacy levels are high at 93% and school leavers entering
the job market have at least 11 years of basic education.
There are eleven public universities, six private universities, about 600 government and
private colleges, and several polytechnics and industrial training institutes which offer
courses leading to certificate, diploma, degree and post-graduate degree qualifications.
Total enrolment in public institutions of higher learning alone is projected to reach over
250,000 this year, with more than half in the science and technical disciplines (not just
ICT).
The private (and parastatal) sector has also set up educational institutions to supplement
the government's efforts to generate a larger pool of professionals and semi-professionals.
Among these are institutions of higher learning set up by (state-owned) corporations such
as Telekom Malaysia Berhad, Tenaga Nasional Berhad and Petronas which provide
degree-level courses. Various private colleges in Malaysia offer degree programmes on a
twinning basis with overseas institution of higher learning, besides foreign universities,
which have set up branch campuses in the country.2
Education in Malaysia is changing quite rapidly, and the forces described by Knowles3
are alive and well within the country:
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Educating people to direct their own learning;
Focusing on learning not on teaching;
Incorporating lifelong learning principles; and
Applying new delivery methods for supporting the learning environment.
Radical changes have been planned for the overhaul of the higher education system in
Malaysia. Some have already been implemented, while others are yet to come. These
1
Lifelong Learning and Vision 2020 in Malaysia by Yip Kai Leong - found on website of Lifelong
Learning Project (APEC – Asia Pacific Economic Cooperation with Canadian International Development
Agency et al) http://www.apec-hurdit.org/lifelong-learning-book/yip.html
2
Malaysia Industrial Development Authority (MIDA)
http://www.mida.gov.my/profit2/malaysia.html
3
Knowles, M. S. (1980). The modern practice of adult education: From pedagogy to andragogy.
Englewood Cliffs, NJ: Cambridge Adult Education.
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changes are in keeping with the government's goal of making Malaysia a regional centre
for excellence in education.
With a specific view towards liberalising the education sector, five bills related to higher
education were passed by the Malaysian Parliament in 1996. These include the
"Education Act", the "Universities and University Colleges (Amendment) Act", the
"Private Higher Educational Institutions Act", the "National Council of Higher Education
Act" and the "National Accreditation Act". The Education Act, among other things,
permits the establishment of branch campuses of foreign universities and the creation of
private universities in Malaysia. This will be direct competition for the original nine
universities, which were publicly owned and state financed. The raison d'être behind the
government's move to permit the establishment of foreign and private universities is to
reduce the outflow of about RM2.5 billion (US$1 billion) annually for overseas
education. Currently, approximately 60,000 Malaysian students study overseas –
Malaysia is a net importer of training.
The private sector has been called upon by the government to develop higher education as
an industry, and to turn Malaysia from consumer status to provider status in this regard.
Part of this may involve increasing the number of twinning arrangements that Malaysian
institutions have with foreign universities where a part of the program can be completed
locally and the remainder done overseas.
The creation of foreign campuses in Malaysia could take longer than originally projected,
as the government's first priority is to establish universities associated with national
utility and resource companies. Included are the proposed Petronas University (oil and
gas), the Telekom University (information technology), and the Tenaga Nasional
University (power). Petronas, Telekom and Tenaga Nasional are state charted companies
with abundant resources and expertise. Private local universities and branches of foreign
universities can only be established in Malaysia through an invitation from the Ministry
of Education, and the National Accreditation Act has established an Accreditation Board
designed to ensure the quality of private local and foreign universities.
The government posits that by having branches of foreign universities, Malaysia will
attract students from other parts of the world to study. The goal is cross cultural mixing
and understanding. For example, it is thought that students from Britain will complete
part of their studies in Malaysia, and Malaysian students will do the same course in
Britain. Both groups will learn beyond their disciplines, and cross cultural understanding
will result.
Amendments to the University and University Colleges Act have paved the way for the
“corporatisation” of public universities in Malaysia. Universities will have greater
autonomy to manage and operate their institutions in a more dynamic and proactive
manner. They will have greater flexibility to develop their own revenue sources, increase
their capacities for consultancy services and the commercialisation of research findings,
and recruit and remunerate teaching staff in a more entrepreneurial fashion. These
institutions, however, will continue to be guided by overall government policy direction
and objectives.
In this overall context of change within higher education, the government has directed
state owned universities to expand their existing distance learning and off-campus course
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initiatives. This is an effort to provide "second chances" for adults who did not acquire
degrees through the normal course of study. Entry requirements for these courses have
been lowered to enable those who lack the paper qualifications, but who have the
necessary experience, to enrol in these programs.4
Institutions
A listing of a number of technology-focused learning institutions can be found on:
http://search.newmalaysia.com/Malaysia/Education/Institutes/. Some examples are shown
below.
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Asia Pacific Institute of Information Technology (APIIT)
Welcome to the Asia Pacific Institute of Information Technology's (APIIT) Home Page
URL: http://apiit.edu.my
Last modified 27-Apr-98
Asia-Pacific Institute For Broadcasting Development
your regional partner in broadcasting development.
URL: http://aibd.org.my/
Last modified 18-Apr-98
Business & Industry Training Centre( BITC )
The ultimate goal of our educational philosophy is the creation of the Thinking Being whose life's purpose is
the courage to be.
URL: http://www.sit.edu.my/
Last modified 18-Apr-98
Ecotech Technical Institute Training Centre (ETI)
Ecotech Technical Institute Training Centre, (ETI) was establshied in 1990 with the objectives of providing
quality skills / technical training.
URL: http://kc.com.my/borneo/sarawak/school/miri/etc/INDEX.HTM
Last modified 18-Apr-98
FUTUREKIDS MALAYSIA HOMEPAGE
Welcome to the Futurekids - Bandar Utama, Malaysia Homepage.
URL: http://www.geocities.com/Athens/Acropolis/6442/
Last modified 14-May-98
Informatics Klang (Sepang institute of technology)
URL: http://www.sit.edu.my/mainpage/web2k/default.htm
Offers a Bachelor of Computer & Info. Science (3+0 Prog.)
The Asia Pacific Institution of Information Technology appears to be a leader in this
field. It offers accredited courses, with either an IT-focused or “Business-with-IT”
emphasis. It also has relationships with various Australian and British universities, in that
APIIT’s Higher Diploma qualifications are recognised by these universities for admission
to their Final Year Degree Courses in Computing, Computing Science, Information
Technology and Business. Another institution, the Asia-Pacific Institute For Broadcasting
Development, focuses on the broadcasting niche.
Asia Pacific Institute of Information Technology
The following details about APIIT can be found on the institution’s website,
http://apiit.edu.my/.
4
Lifelong Learning and Vision 2020 in Malaysia by Yip Kai Leong - found on website of Lifelong
Learning Project (APEC – Asia Pacific Economic Cooperation with Canadian International Development
Agency et al) http://www.apec-hurdit.org/lifelong-learning-book/yip.html
94
Overview
The Asia Pacific Institute of Information Technology (APIIT) is Malaysia's specialised
higher education centre for Information Technology , one of the fastest growing and most
important fields of technology in modern times Initiated by the Government and in
collaboration with the IT industry in Malaysia, supported by the Ministry of Science,
Technology and the Environment, approved by the Ministry of Education and funded by
the Sapura Group, the formation of APIIT is a milestone in the development of computer
higher education.
APIIT is poised to be Malaysia's major project in IT education and training for the multibillion ringgit IT industry in the Asia-Pacific region.
Corporate Training
Each training programme is designed to meet specific learning objectives and to transfer
specific skills, and has set prerequisites. Where necessary, APIIT's account managers will
help their clients customise training programmes to meet custom skills transfer
requirements. Our trainers are industry-experienced, skilled in adult learning techniques
and highly certified by relevant software product vendors. They consistently receive
excellent feedback from course participants.
APIIT has grown its in-house ability to transfer skills and knowledge to companies and
the working professional in areas of direct concern to them. Over 170 training
programmes are offered, covering:
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Information Systems Management
Software Engineering
Object-oriented Development
RDBMS & Client-Server
UNIX & 'C'
Databases
Desktop Publishing
Electronic Mail
Personal Computer Management
Groupware
Internet & Multimedia
Microsoft Visual Programming Tools
Networking Operating Systems
Industry Certification Programmes
In recognition of APIIT's many achievements and consistent quality, Microsoft
Corporation and Sun Microsystems have appointed APIIT as their authorised training
centres.
APIIT is the first institute to be appointed the authorised training partner by Microsoft
under the Training & Certification MS Press Way scheme, for the following programmes:
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Microsoft Certified Professional (MCP)
Microsoft Certified Systems Engineer (MCSE)
Microsoft Certified Solution Developer (MCSD)
95
APIIT has also been appointed as a Sun Microsystems Authorised Java Centre (AJC) in
Malaysia to run Java-related courses under the Premier Education Partner Programme
(PEP) and Value Added Instructional Programme (VIP).:
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Sun Certified Java Programmer
Sun Certified Java Developer
APIIT's corporate training programmes have received overwhelming response, with an
average of over 1000 participants a year being trained from a wide range of industry
segments. As a Human Resource Development Council (HRDC) approved training
provider, qualified organisations have taken advantage of APIIT's PERLA, PROLUS and
SBL status to seek reimbursement of training fees from the HRDF.
Furthermore, in recognition of APIIT's ability to meet complex training requirements, a
number of large conglomerates and companies are working with APIIT to develop their
in-house training strategies as well as organisational, departmental and individual staff
training plans.
In the final analysis, APIIT's corporate training programmes are valuable solutions to the
current and projected IT training requirements of the Malaysian workforce.
Academic Options
As Malaysia moves into the 21st century, with information technology as a key pillar to
achieve Vision 2020, the agenda for APIIT is to be a one-stop centre for IT education and
training. APIIT will also make Malaysia a regional IT training hub of excellence, drawing
the best from the IT industries of the world to create a teaching and learning environment
also suited for high-technology research and development.
Computing and Info Technology
APIIT's main objective for its Computing & Information Technology Diploma and
Higher Diploma students is to equip them with the most relevant Information Technology
(IT) knowledge and skills which will enable them to assume key positions within the IT
industry and user organisations, as well as progress higher to graduate and postgraduate
studies in the latest fields of specialisations.
The graduates will be able to start their careers in organisations with computer
installations in either a programming, technical support or systems function. Beyond a
commanding understanding of the necessary knowledge of IT elements, organisation,
systems, functions, issues and methodologies, they will be equipped to interface with the
latest developments in IT at the operational level.
They may also apply for advanced entries to various degree courses in Computer Science
or Information Technology offered by a number of widely recognised British
Universities. APIIT's university placement services will provide the necessary
documentation and liase with the Universities of the student's choice until a place has
been secured.
Business with Information Technology
The objective of the Business with Information Technology Diploma and Higher
Diploma courses is to equip students with the necessary skills which will enable them to
96
assume key positions in the business environment, as well as progress to graduate and
postgraduate studies in the latest field of specialisations.
The implementation of technology in the form of computer-based systems for design,
manufacturing and information processing throughout commercial enterprises has
increased over recent years. This has created a need for unique business practitioners who
are able to combine technological competence and commercial awareness in solving
business problems.
Students may apply for advanced entry to various degree courses in either BA (Hons) or
BSc (Hons) degree options offered by a number of widely-recognised British
Universities. APIIT's university placement services will provide the necessary
documentation and liase with the universities until a place has been secured.
National strategy and government intervention
A number of policies as described above have resulted in the passing of new legislation,
including those related to catalysts and sources of funding for skills development.
Malaysia's Human Resource Development Fund
One significant measure that has been introduced by the government to increase the
supply of skilled workers is the establishment of the Human Resources Development
Fund under the "Human Resources Development Act 1992". This fund encourages and
facilitates employers in the manufacturing and service sector to increase the pace of
retraining and skills upgrading in their workforce, as well as to equip employees with
specialised and up-to-date skills as manufacturing processes become increasingly
automated and more complex.5
According to the World Bank, Malaysia's Human Resource Development Fund is an
example of a flexible, demand-driven training scheme. A payroll levy is used for partial
reimbursement of approved training expenses. Depending on their training needs, firms
can choose flexibly from among several programs: (1) approved training courses
provided by registered external institutions; (2) ad hoc in-plant or external training
courses on a as-needed basis; and (3) annual training programs. Prior approval of training
courses under the second and third programs is required from the HRD Council.
However, the Council's overhead costs are kept low, and filing burden on firms is
reduced, by automatic approval of courses under first program, by using registered
training institutions as collection agents of the council, and by giving firms with well
developed training plans the option of filing under the annual program. In addition, the
HRDF provides firms with grants for developing training plans, organizes regional
courses on training need assessments, and administers a variety of subsidized programs
targeting small enterprises. A preliminary analysis indicates that the scheme may have
increased the incidence of training modestly.
The Malaysian government is committed to ensuring that higher education institutions
will continue to be accessible by lower income groups and the disadvantaged. This will
be championed in part by appropriate financial assistance packages. In the 1997 budget,
5
http://www.apec-hurdit.org/lifelong-learning-book/yip.html
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the government has established an RM100 million (US$40 million) loan fund to assist
students who face financial constraints (Budget Speech, 1996). And in another move to
enhance the higher education environment, the government has stipulated that half of the
income received by non-resident lecturers who lecture in approved institutions and
organisations in selected disciplines will be exempt from income tax.
Catalysing joint public-private training ventures
Governments can also act as a catalyst to joint public private ventures to provide training
through industry associations or regionally-based skill development centres. To make
these training centres demand driven, the private sector should be actively involved from
the beginning. Experience with Malaysia’s Skills Development Centres indicate that this
could be an important means of increasing the incidence of training. One such centre, in
Penang, is described under Private Sector Initiatives, below.
Private sector initiatives and PPPs
The Penang Skills Development Center (PSDC) in Malaysia is a successful example of
how public-private co-operation can be harnessed to provide demand-driven training
programs for regionally based industry. Established in 1989 as a tax-exempt institution on
the joint initiative of the Penang state government and major manufacturing firms
(primarily MNCs), the PSDC is funded by corporate contributions and training fees, and
by the state government which provides PSDC with subsidized facilities. Its strategic
location in the Bayan Lepas Free Trade Zone provides workers with easy access to
training, which they attend either full time or on a part time basis. Training programs and
course content are determined by a training committee on the basis of semi-annual needs
assessments of firms, and approved by the PSDC council representing the state
government, corporate members, the local university and the national standards agency.
Training courses are taught by staff from external training institutions, the local university
and firms themselves. Firms have several incentives to join and work with the PSDC;
they help shape the training agenda; they pay relatively low training fees because of
economies of scale; they have access to classrooms and recent vintage training
equipment; equipment donations to PSDC are tax deductible and, as donors, they receive
preferential access to the equipment for running their own training courses.
The Malaysian government has sought to replicate the PSDC model in other states by
providing grants to complement contributions of land and training facilities by state
governments. Early experience with these SDCs has been mixed. The most dynamic
SDCs had several characteristics--they brought private sector firms into the planning
process from the very beginning; training needs assessments were conducted of firms in
the region to be served; machinery suppliers were convinced to donate equipment for
training; and training facilities were located close to firms. Some SDCs were less
successful, in some cases because of poor location of training centres (location decisions
were shaped by a policy of decentralizing industry from congested areas), in other cases
because the training provided was supply driven (planning focused more on assessments
of the training capabilities of existing providers than on the training needs of firms).6
Skill Development Centres to serve regionally based industry – World Bank website
http://www1.worldbank.org/beext/part_v_tasd/tasd_sd_page1_faqf_penang.htm
6
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NGOs and international organisations
The International Development Research Centre of Canada (IDRC) is actively involved
in development in a number of Asian countries. The following article was found on the
Pan Asia Network (PAN)7 website. PAN is a program initiative of the IDRC, which helps
researchers and communities in the developing world find solutions to their social,
economic, and environmental problems.
A research team from the Universiti Malaysia Sarawak (UNIMAS), Faculty of
Information Technology is exploring potential uses of the Internet in remote
communities. Under the Pan Asia R&D Grants supported project 'Internet Access by
Remote Communities in Sarawak: The Smart School as a Demonstrator Application',
Internet access is being provided to a school in the remote community of Bario in the
Malaysian state of Sarawak on the island of Borneo. The research team is examining the
information needs that exist in this primarily agricultural region, with the aim of
determining how the Internet can be used to improve access to and dissemination of
information resources.
Bario is an isolated community with no road access and poor telecommunications
infrastructure, and is facing an outflow of residents to more urbanized areas. The main
objective of the 'Smart School' project is to determine what opportunities may exist for
social development in this rural area through the use of the Internet and other ICTs.
The 'Smart School' project is divided into two Phases - Phase I involves conducting a
number of base-line surveys to assess the level of ICT awareness in the community and to
gain an understanding of the information needs of the local Kelabit people. Phase II
includes the establishment of a telecentre in a secondary school in Bario, drawing on the
Malaysian Government's 'Smart School' initiative.
The UNIMAS project is seen as a means of decreasing the impact of the Digital Divide
between urbanized and rural areas in Malaysia. Additional financial support for the
project has been received from the Malaysian government's National Information
Technology Council (NTIC) under its Demonstrator Application Grants Scheme (DAGS).
A number of research studies have been completed to date under Phase I of the 'Smart
School' project. Results from the studies will be used as baseline data for implementation
of the telecentre. The studies include: data on ICT-literacy of secondary school teachers;
awareness and usage of ICTs in the community of Bario; methodologies for identifying
information needs for the development of local ICT-based information systems; and, an
information and communications needs-assessment of the Bario community.
Phase II of the project is currently being implemented. It is expected that the 'Smart
School' telecentre will be used to deliver such ICT-based services as electronic
7
PAN initiative of the International Development Research Centre (IDRC) of Canada
http://www.panasia.org.sg/news/rnd/98232.htm
99
government, electronic commerce, social services, cultural exchange, tele-medicine and
private communications.
Furthermore, the 'Smart School' pilot project will establish, test, and refine various
technical means of providing Internet access using wireless applications appropriate to
remote rural conditions, including radio, satellite and other computing technologies.
The telecentre is currently connected to the Internet via a VSAT satellite link.
Linkages between countries (bridging initiatives)
International connections have been identified in a number of different areas, most of
which have already been mentioned above. They are summarised below for ease of
reference:
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The government posits that by having branches of foreign universities, Malaysia
will attract students from other parts of the world to study. The goal is cross
cultural mixing and understanding. For example, it is thought that students from
Britain will complete part of their studies in Malaysia, and Malaysian students
will do the same course in Britain. Both groups will learn beyond their disciplines,
and cross cultural understanding will result.
The Education Act, among other things, permits the establishment of branch
campuses of foreign universities and the creation of private universities in
Malaysia. These are in direct competition for the universities that are publicly
owned and state financed.
The raison d'être behind the government's move to permit the establishment of
foreign and private universities is to reduce the outflow of about RM2.5 billion
(US$1 billion) annually for overseas education. Currently, approximately 60,000
Malaysian students study overseas.
The private sector has been called upon by the government to develop higher
education as an industry, and to turn Malaysia from consumer status to provider
status in this regard. Part of this may involve increasing the number of twinning
arrangements that Malaysian institutions have with foreign universities where a
part of the program can be completed locally and the remainder done overseas.
A number of leading Australian and British universities recognise Malaysian
technology institution APIIT's Higher Diploma qualifications for admission to
their Final Year Degree Courses in Computing, Computing Science, Information
Technology and Business.
Collaborative efforts between the Malaysian government, enterprises and foreign
governments have resulted in the establishments of several advanced skills
training institutes such as the German-Malaysian Institute, Malaysia France
Institute, Japan Malaysia Technical Institute and British Malaysia Institute.
The Japan Science and Technology Corporation, a Japanese government
organization refers to various Japanese international fellowships, including one in
Malaysia.
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SME trends
Note: SMEs are referred to as “SMIs” in Malaysia.
Limited references found in Web searches included:
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SMIs nurtured to become global suppliers with ISO certification. Government
assistance to SMIs in achieving world -class standards recognition through the
Industrial Technical Fund. http://www.miti.gov.my/exspeech-july.htm
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5 Key Areas to Further Strengthen SMIs
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http://www.smisme.com/index.php?myProjectSess=0639015437cb92c34d292b4f7dca
a2b4
(Excerpts of an interview with Mr. Looi
Teong Chye, President of SMI Association, Malaysia).
SMI One-Stop
Solution 2001, themed "Ultimate Solutions Towards Global Competitiveness",
is set up to assist SMIs in facing challenges of the new century by emphasising
the following areas: 1. Information Technology 2. Finance 3. Environment
Management 4. Human Resources 5. Marketing.
SME Support Organisations
The following were identified by NGO Technonet8 as “leading SME support
organizations in Malaysia”:
SIRIM Berhad
www.sirim.my
SIRIM Berhad is an active partner in the rapid industrial development that took place in
Malaysia in the last two decades. It provides a range of developmental assistance to
various sectors of industry and government agencies. SIRIM Berhad offers consultancy
service, industrial information, standards development, quality assurance system, testing
service, training, certification, R&D and calibration. To enhance technological
capabilities and competitiveness of small and medium sized industries, it offers special
assistance for quality improvement, technology upgrading and process and product
innovation.
Federation of Malaysian Manufacturers (FMM)
www.fmm.org.my
FMM is a premier economic organization representing more than 2,000 manufacturers. It
aims to promote continued growth and international competitiveness of local
manufacturers. FMM provides trade promotion services, assists in lobbying with
government in solving policy issues affecting businesses, economic information, expert
consultation, training and skills development, industry groups management, bar coding
and product numbering. It extends special assistance to small and medium industries by
providing expert consultation. It maintains a trade enquiry service to assist the local
manufacturers in expanding businesses overseas.
8
Technonet website : http://www.technonet.org.sg/sme_stop.htm
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An article on the Federation of Malaysian Manufacturers’ website under the “SMI”
section reads as follows:
Economic Scenario & Implications of K-Economy for SMIs
Globalisation and borderless Information Communication Technologies (ICT) are
forcing businesses to change the ways things are being done in order to stay
competitive and survive. It has been widely recognised that a knowledge-based
economy (K-Economy) is the way forward in the constantly changing world
economy. Malaysia, therefore, needs to transform to become a nation that
positions itself high on the learning curve, receptive to new technologies and
apply the knowledge acquired for economic growth.
The transformation into a knowledge-based economy requires the correct use of
ICT in business. Currently, over 90% of the manufacturing establishments in
Malaysia are SMIs companies. However, only 16% of the SMIs has an ecommerce strategy, 7% has internet order taking and 2% has internet order
payment. 80% of the SMIs cater to domestic market only. Why are SMIs not
taking advantage of export market? Could this be a sign of complacency or the
inability to compete internationally? With the onslaught of globalisation and
dynamic market place, SMIs must respond quickly to new developments and
concepts. The new K-economy will lead to increased productivity, higher income
as well as a better quality of life. Survival, therefore, in a borderless global
economy based on knowledge requires everyone to be equipped with new skills
and assimilate the culture of advanced technology and dynamic entrepreneurship.9
Learnerships
There is an increasing number of public training institutions to meet the growing
requirements of the industrial sector. These include technical schools, polytechnics,
industrial training institutes and skills development centres.
The National Vocational Training Council under the Ministry of Human Resources
coordinates the planning and development of a comprehensive system of vocational and
industrial training programmes for all public training agencies. It also develops the
National Occupational Skills Standards (NOSS) on a continuous basis. To-date there are
more than 450 NOSS covering basic, intermediate and advanced training levels (in
general, not just ICT-related).
Collaborative efforts between the Malaysian government, enterprises and foreign
governments have resulted in the establishments of several advanced skills training
institutes such as the German-Malaysian Institute, Malaysia France Institute, Japan
Malaysia Technical Institute and British Malaysia Institute.
In 1993, the Human Resource Development Fund (HRDF) was launched by the
government to encourage training, retraining and skills upgrading in the private sector.
9
Federation of Malaysian Manufacturers website : http://www.fmm.org.my/
102
Manufacturers who contribute to this fund will be eligible to apply for grants to defray or
subsidise costs incurred in training their workers.10
Research and innovation
The following extract from the JST website provides an overview of the current thinking
surrounding research and innovation in Malaysia. JST is the Japan Science and
Technology Corporation, a Japanese government organization. The website refers to
various Japanese international fellowships, including that with Malaysia.
JST-ASM Forum on Strategy for Upgrading Malaysian Industry - A Report11
The Industrial sector is the backbone of the Malaysian economy. It contributed to
about 33.1 percent of the national Gross Domestic Product (GDP) and employed
some 2.1 million workers as of 1995. As articulated by Vision 2020, to reach the
status of a developed country, the industrial sector will be accelerated to achieve
an average economic growth of 7 percent per annum until the year 2020.
To accelerate and develop the industrial sector, there is a strong need for science
and technology input. Our industry must develop indigenous technology
capability to enable them to compete in the global market. However, at present,
the local industry has adopted a strategy of purchasing technology rather than
developing them. This is largely because the industries place greater emphasis on
short-term business solution rather than in long-term investments in developing
in-house technological and innovative capability.
In this respect, Academy defines its role as to assist in upgrading the technological
capability of Malaysian industries and enhanced their competitiveness in the
global market. ASM will endeavour to assist the industry in identifying new
science and technology applicants. ASM will provide assistance and advice to the
industries to further advance technological ideas thereby upgrading relevant
technological capability. To this end there is a need to undertake a strategic
thinking exercise to improve the structure and technology management in
Malaysia with particular emphasis on the infusion of technology into the industrial
development.
In assisting in upgrading the technological capability of Malaysian industries, the
Academy has identified several strategic thrust areas that it will focus on. They
are:
1. Technology Transfer – Strategies and mechanisms for effective transfer of
technology
2. Assessment of Technological Needs and Requirement
3. Human Resource Development and Training
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Malaysia Industrial Development Authority (MIDA)
http://www.mida.gov.my/profit2/malaysia.html
11
JST-ASM Forum on Strategy for Upgrading Malaysian Industry - A Report
http://www.jstmy.com.my/jstmy/jstsumreport.html
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4. Awareness and Information Gathering
5. Social Implication of Technology
In operationalising these strategic thrusts, the Academy of Sciences Malaysia has
develop various programmes and activities. One of those the programmes is the
ASM-JST Forum. The programme is organized with the sponsorship of Japan
Science and Technology Corporation (JST) and support of the Ministry of
Science, Technology and the Environment, Malaysia. The JST-ASM Forum is an
activity aimed to disseminate information, enhance awareness and provide avenue
for exchange of ideas and viewpoints. This Forum is designed to share past
experience and to discuss from the SET angle factors contributing to the
development of industrial economy in particular those that relates to Malaysia. To
achieve this, the Forum is organized in a manner that enable both Malaysian and
Japanese viewpoints be presented.
On April 22, 1999, the Academy of Sciences Malaysia organized the first ASMJST Forum to discuss the "Strategy to Upgrade the Malaysian Industry". A total of
50 participants from industries, research institutions, government departments and
agencies and institutions of higher learning attended the half-day Forum.
The Seminar was privileged to have Mr Teruo Kobari, an expert from JICA
attached to MIDA to speak on the subject. Mr Kobari has had more than two years
experience working with MIDA in strengthening the Malaysian industries. In his
presentation, Mr Kobari categorized Malaysian industry as labour intensive, plant
industry. This basically implies that the Malaysian industries are very dependent
on foreign service companies for its plants and maintenance. Another
characteristics of the Malaysia industries are their reliance on import for parts and
materials. Therefore, Malaysian industries by and large are assembly facilities
catering to the requirements of some large foreign companies.
This strategy of operation was suitable at the stage where Malaysia was at the
infant stage of industrialization and labour was a comparative advantage.
However as we aspire to move further up the industrial development, we need to
focus our industrial activities on higher value added chain as amplify through
Industrial Master Plan 2. In this respect, Malaysia industries lack the ability to
develop intermediary products to manufacture final products. As such most of
these products are imported. As a matter of urgency, Malaysia must develop a
core base of supporting industry. There must be concerted effort to obtain and
develop key technologies surrounding these support industries.
The change in consumer behaviour invariably means that products must be
developed to suit individual taste and need. The mass production technology of
yesteryears must give way to multiple production technology. This technology is
fundamental to supporting industry. As demand is driven by user, production
system must react and able to product many products in smaller lots.
Product design is another key strategic direction that Malaysian industry must
undertake. This ability are embedded in the intellectual ability of its workers.
There is a growing recognition that knowledge is now the primary resource in
economic development. It is the basic ingredient of prosperity. Take the example
of the silicon chip. The new material of silicon chip is sand, a cheap raw material.
The value of the chip lies in its design, and the design of the machine that makes
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it. Professor Rosabeth Moss Kanter from Harvard Business School suggested the
framework called LIT (learn, Innovate and Trade) as a basic foundation of a
knowledge driven economy.
As knowledge rapidly defined the competitiveness of companies in a globalised
environment, learning ability at company level is crucial. Companies must begin
to invest in the intangible such as human resource training and Research and
Development. In this matter the technological absorption and development ability
in the company will improve and thus enhanced its competitiveness.
In responding to Mr Kobari’s presentation, Mr Aw Lek Chai, Assistant Director,
Industrial Policy Division, Ministry of International Trade and Industry (MITI)
highlighted the Malaysia’s Government initiatives to upgrade the industry. It is
recognized that in the process of technology transfer, the responsibilities rest with
the transferee. The transferee must have a clear objective of the technology it
requires and needs. The Government meanwhile will create the necessary
environment to ensure that the technology transfer process is successful by
strengthening of the adsorption capacity through a better education and skill
training, providing adequate infrastructure, supporting R&D programme through
the various fiscal and non-fiscal measures and promoting Private-Public
Collaboration programme. (Extract truncated here).
References (Malaysia)
Lifelong Learning and Vision 2020 in Malaysia by Yip Kai Leong - found on website of Lifelong
Learning Project (APEC – Asia Pacific Economic Cooperation with Canadian International
Development Agency et al) http://www.apec-hurdit.org/lifelong-learning-book/yip.html
Ahmad Sarji Abdul Hamid. (1993). Malaysia's vision 2020: Understanding the concept,
implications and challenges. Kuala Lumpur: Pelanduk Publications.
Budget Speech. (1996, October 26). New Straits Times, p. 15.
Economic Planning Unit. (1996). Seventh Malaysia plan 1996-2000. Kuala Lumpur:
Author.
Knowles, M. S. (1980). The modern practice of adult education: From pedagogy to
andragogy. Englewood Cliffs, NJ: Cambridge Adult Education.
Mahathir Mohomad. (1992). Malaysia the rising star: Business and investment
opportunities and challenges towards 2020. Kuala Lumpur: Kuala Lumpur Stock
Exchange and Malaysian Strategic Consultancy Company.
Nor Azizah Salleh. (1991). Adult education activities (Research Project 42/89). Kuala
Lumpur: Universiti Kebangsaan Malaysia, Bangi.
Sahibudllah, M. & James, A. (1996, July 10). Najib: Revamp education system in
ASEAN. New Straits Times, p. 9.
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Wan Mohd. Zahid. (1994). Quality education for all: Direction and challenges in the 21st
century. In Anicia
Alvarez, Myint Swe Khine and Jim Welsh (Eds.), Proceedings of the international
conference on education for all (Universiti Brunei Darulsalam) (p. xvi). Brunei:
Educational Technology Centre, Universiti Brunei Darulsalam.
Malaysia Industrial Development Authority (MIDA) website
http://www.mida.gov.my/profit2/malaysia.html
World Bank website
http://www1.worldbank.org/beext/part_v_tasd/tasd_sd_page1_faqf_penang.htm
Federation of Malaysian Manufacturers
http://www.fmm.org.my/
Book advertised on Federation of Malaysian Manufacturers website: Essential guide to vital
services & facilities including Government incentives for SMIs in Malaysia.
http://www.fmm.org.my/publications/smi.htm
JST-ASM Forum on Strategy for Upgrading Malaysian Industry - A Report
http://www.jstmy.com.my/jstmy/jstsumreport.html
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Appendix: Educational Forces (1980)
Knowles, M. S. (1980). The modern practice of adult education: From pedagogy to
andragogy. Englewood Cliffs, NJ: Cambridge Adult Education.
Knowles (1980) identified four forces which he felt are ongoing influencers of effective
educational practices. The first of these pertains to the purpose of education. Traditional
perspectives argue that the purpose of education, at its most simplistic level, is to produce
an educated person. In this context, education is limited in the sense that it has an end.
However, in the current era, one marked by an explosion of knowledge, revolution in
technology, and social policies that argue for equality of educational opportunity, this
traditional purpose of education and the belief in the power of a fixed knowledge set are
no longer appropriate. Now, the educational mission is to produce a workforce of
competent people who are able to apply knowledge under changing conditions and, more
importantly, who are able to continue learning on their own.
The second force is the shift from a focus on teaching to a focus on learning. In the past,
emphasis was placed, often with great deliberation and in great detail, on training teachers
to be the centre for information and control. The teachers taught and the students learned;
if there was no teaching, there was no learning. Now, the focus is on the learning side and
emphasis is placed on the students. In this model, learning is student driven, not teacher
controlled.
The third force is the concept of lifelong learning as the organising principle for all
education, the reason being that, in a world of accelerating change, learning must be a
lifelong process, one that extends throughout the lifespan. Formal elementary and
secondary schooling, therefore, must be concerned primarily with the development of the
skills of inquiry, and adult education must be concerned primarily with the provision of
resources and support for self-directed learning.
The fourth force relates to the development of new delivery systems for learning. These
enable individuals to continue learning throughout their lives, at a time and place of their
own choosing. Flexibility is the key. These new delivery systems include examples and
characteristics which have been variously labelled as "non traditional study", "external
degrees", "multimedia learning systems", "community education", "learning
communities", "learning resource centres", and "learning networks". Thankfully,
education is no longer a monopoly business housed within educational institutions and
framed by teacher-centred offerings. Resources for learning are everywhere, and the task
of learning organizations is to link learners with learning resources.
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