KUALA LUMPUR: Budget 2026 must ensure that Technical and Vocational Education and Training (TVET) courses align with Malaysia’s economic priorities, such as value-added job creation in manufacturing, five-year development plans, and future-led energy transition initiatives including renewable energy.
National Association of Skilled Workers (Belia Mahir) president Mohammad Rizan Hassan said many TVET institutions were offering courses that were no longer aligned with industry demand.
He said Belia Mahir was calling for specific allocations in the upcoming budget to expand TVET capacity, upgrade facilities, and update outdated curricula.
Funding for TVET was essential to support high-demand sectors such as electric vehicles (EVs), robotics, semiconductors and renewable energy, in line with the New Industrial Master Plan 2030 (NIMP 2030), 13th Malaysia Plan (13MP) and National Energy Transition Roadmap (NETR), he said.
In a statement today, the association said investments in modern equipment, specialised laboratories and qualified trainers were critical to ensure programmes remain competitive and industry relevant.
Mohammad Rizan said another pertinent issue was that small and medium enterprises (SMEs) and job readiness should be prioritised, given that they make up over 60 per cent of the economy.
However, “SMEs face critical skilled labour shortages,” he said when commenting on the recent establishment of the National TVET Commission announced by Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.
He said that while TVET enrolment was increasing, gaps remained as many courses were still not aligned with industry needs.
“To resolve this, more institutions should offer programmes that equip Malaysia’s youths with job-ready skills. The establishment of the National TVET Commission to drive reform will provide a central reference for investors and industry, while implementing national TVET standards and policy,” he said.
He added that Malaysia should also urgently expand and realign its TVET ecosystem to meet growing student intake and rapidly evolving industry requirements.
“This can be practically implemented as Malaysia’s economic priorities are clearly outlined in the NIMP 2030, 13MP and NETR,” he said.
The association also emphasised the need for operational funding for the newly established National TVET Commission to coordinate standards, prevent course duplication, and align institutions with investor needs.
Without budget-backed reforms, Malaysia risks falling behind in supplying skilled workers for high-value industries and future economic growth.
Elaborating further, Mohammad Rizan said Malaysia should expand the capacity of its TVET institutions and overhaul curricula to match fast-evolving industry needs as student enrolment accelerates.
Malaysia currently has more than 1,300 TVET providers across government agencies, private institutions and state skills centres operating under about 12 ministries.
“While this reflects the government’s ‘TVET for All’ agenda, the numbers are no longer adequate to absorb the surge in student interest. Enrolment has increased sharply in the past two years, but placements are still not sufficient.
“The issue is not only the number of institutions (but) many are offering similar courses that are no longer aligned with industry demand,” he said.
He stressed that the shortage lay in both institutional capacity and programme relevance.
“There are courses being duplicated across institutions even though industry needs have shifted. That is why we need more providers and, more importantly, more industry-relevant fields of study,” he said.
To address this, Mohammad Rizan called for a clear classification of institutions and specialisation of programmes in line with national economic strategies such as the NIMP 2030, 13MP and NETR.
He suggested that public institutions focus on capital-intensive programmes involving heavy machinery and advanced technology, while private providers could concentrate on lower-cost areas such as beauty, tailoring and community-based skills.
“A structured division will prevent duplication and ensure manpower is channelled into sectors with the highest demand,” he said.
With rapid growth of EVs, robotics, semiconductors and high-value manufacturing, he said Malaysia’s readiness to supply skilled workers remains “in the grey area,” meaning it is still uncertain.
“These programmes require major investment in facilities, equipment, consumables and highly qualified trainers. It’s not just about updating the syllabus; the entire ecosystem has to evolve with the pace of technology,” he added. – Bernama