00:00Malaysia's push for high-value growth hinges on one thing, skilled talent.
00:09The new Industrial Master Plan 2030 envisions Malaysia as an advanced, high-tech industrial economy.
00:17The 2026 budget backs this vision, steering the country toward investment-led, innovation-driven growth.
00:24Priority sectors like electrical and electronics and electric vehicles to renewable energy, aerospace, chemicals, pharmaceuticals, and medical devices are at the heart of this transformation.
00:40But there's one major roadblock, a shortage of skilled labor to power these industries.
00:46That is why technical and vocational education and training alongside science, technology, engineering, and mathematics is now being held up as a critical enabler of that transformation.
01:00The skills gap is stark.
01:03Only 6.1% of Malaysian youth are in vocational education compared to 23.8% in Singapore and 20.4% in Germany.
01:12A Kazana Research Institute report flags a worrying mismatch between graduate output and market demand, with too few students in engineering, ICT, and environmental technology.
01:26And then there's the stigma.
01:28For decades, TVET was dismissed as an inferior path.
01:32But that perception is slowly shifting.
01:34Now, 54.3% of school leavers choose TVET, and their employability rate hits 95.1%.
01:43Many even out-earned degree holders with monthly salaries up to RM3,500 in automation and advanced manufacturing.
01:55To build on this momentum, the 2026 budget allocates RM7.9 billion to modernized facilities, strengthen industry linkages, and expand apprenticeships in high-growth sectors.
02:10The Malaysian Investment Development Authority projects 3.3 million manufacturing jobs by 2030.
02:17Most of them high-skill, high-income roles in robotics, chip packaging, and cleanroom automation.
02:22These sticky industries resilient to global shocks and difficult to relocate could anchor Malaysia's next growth wave.
02:33Malaysia's competitiveness will depend on whether its workforce can match the pace of its industrial ambition.
02:41Recent mega-investments like Infineo's RM5 billion expansion in Kulim and Intel's RM30 billion facilities in Penang signal early wins under NIMP 2030.
02:52But momentum isn't guaranteed.
02:57Talent shortages could stall flagship projects or push investors toward regional rivals.
03:04Still, the goal is clear.
03:06Build a workforce ready for the industries of tomorrow.
03:10Whether through polytechnic programs, STEM courses, or industry apprenticeships,
03:15Malaysia's next generation of skilled workers will determine the nation's economic future.
03:20And I'm Farah Raja and Natasha Bust, FMT.
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