Key Reforms in Revitalizing TVET Malayisa

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The key takeaways are that Malaysia aims to develop a skilled workforce to become a high income economy and there are initiatives underway to reform, streamline and improve the perception of the TVET system.

The 5 pillars of TVET in Malaysia are: 1) Public higher education institutions 2) Malaysian Skills Certification System 3) Company-based training 4) Private higher education institutions 5) Continuing education and training.

Students face issues as TVET is not seen as a mainstream option and does not provide clear education or professional pathways. Employers lack recognition for TVET qualifications. There is also a highly fragmented landscape for TVET providers.

Regional Conference HRD through TVET as a Development Strategy in Asia, 2-3 Aug 2011, Colombo, Sri Lanka

Key Reforms in Revitalising Technical and Vocational Education and Training (TVET) in Malaysia Dr. Pang Chau Leong
Director-General Department of Skills Development Ministry of Human Resources, Malaysia

Contents
1 2

Current TVET Landscape

New Demands on TVET


Re-vitalising the TVET System in Malaysia

CURRENT LANDSCAPE OF TVET IN MALAYSIA

5 pillars of education & training in Malaysia


(World Bank, 2005)

1st.Pillar: Public higher education institutions


(Includes polytechnics and community colleges under the Ministry of Higher Education)

2nd.Pillar: Malaysian Skills Certification System


(5-tiered skills qualification based on the National Occupational Skills Standards)

3rd.Pillar: Company-based training


(Comes under the Human Resource Development Fund established in 1993 to promote the training of employees)

4th.Pillar: Private higher education institutions


(Under the purview of the Private Higher Education Institutions Act 1996, and accredited by the Malaysian Accreditation Agency)

5th.Pillar: Continuing education and training


(Caters to the demands of employers, community or society at large for further education, skills upgrading, retraining, career advancement and enrichment).
3

Multiple providers, qualification & curricula create confusion for students and employers
TVET delivery system (overview)
Certificates offered
BEng Tech Adv Dip Tech Diploma Technology
4 1

MOHR

MOYS

MORRD
Universiti Kuala Lumpur
1

MOE

MOHE

MOA

MOD

Public Works

States

JMTI1

KKTM6
1

DLKM DKM Polytechnic diploma

ADTEC2 Private Accredited Center

IKTBN4

GMI7
1

Initiatives under 10th Plan to harmonize accreditation across ministries Full recognition of SKM (Malaysian Skills Certificate) Board of Technologists to provide professional pathway Further improvements planned within TVET system and with the industry Central application system to be implemented 2011 Cooperation with industry through Technical Advisory Committees Active participation of industrial players through Industry Lead Bodies (ILBs) in training and assessments

CAM
28

Polytechnics
12

Sijil Teknologi SKM 1,2,3 + Sijil Teknologi SKM 1 & 2

22

IKM6 ILP3
1 15 7110 6

Private Accredited Center

500-600

IKBN5

202 GiatMARA9

MOA Community 88 Institutes tbc College Technical Perhebat and Institutes Vocational
School

Agensi Nuklear

31

CIDB

States institutes

~1000 TVET institutions in total

Issue - Governance

Skills and Vocational & Technical are separate sectors with distinct accreditation
Different sectors in the Malaysian Qualification Framework ...
Skills sector
L8 L7

Vocational and Technical

Higher education
Doctoral degree Masters degree Postgraduate dip. Bachelor degree Graduate certificate

MQF

L6

Separate governance of Skills and Vocational and Technical sector Limited coordination and duplication of responsibilities in calibrating learning outcomes Limited sharing of best practices Distinct accreditation (DSD and MQA) raises confusion Students and employers unclear of value/ differentiation among certificates Exacerbates unclear pathway for further education

L5
L4 L3 L2 L1

Advanced Diploma Diploma Skills Cert 3 Skills Cert 2 Skills Cert 1 DSD-accredited (MOHR) Accreditation process undertaken by DSD, based on NOSS

Advanced diploma Diploma Vocational and Technical Certificate MQA-accredited (MOHE) Internal quality assurance process, followed by MQA accreditation

Advanced diploma

Diploma
Certificate

Accreditation

Separate agencies accredit programs within TVET

Source: MQA; BCG analysis

No single authority over TVET landscape in Malaysia


No single body to provide oversight of TVET landscape
Benchmark: Australia Single coordinating authority
Australian Qualifications Framework

Report to

Report to

Report to

MOHR

MOHE

MORRD

Report to Report to
MOYS

Report to
Public Works

More than 20 government agencies reporting to own ministries Lack of coordination between ministries result in lack of overall understanding of TVET landscape

Each state skills training department reports to a single federal ministry Provides clear overview of TVET landscape Increases efficiency

270,000 students enrolled in TVET system (in 2010), 70% in government institutions
Total enrolment 2010: ~270,000 students
25,000 at MOE Technical Sec. School + 185,000 at Public & States Inst. + 60,000 in Private MOHR MOYS MORRD MOE MOHE MOA MOD

Public Works

States

Private

2,000 3,200 8,200

Level 4 & 5 (Diplomas)

GMI
2,700

88,000

20,000 700

~60,000

JMTI ADTEC IKTBN KTBN


10,800

Polytechnic

KKTM States Private

10,000

IKM Level 1 to 3 (Certificate) ILP


19,000 25,000

17,000

Institutes

MOA

805

Institutes

Institutes

GiatMARA

Commu -nity Technical Colleges Secondary School 72%

Perhebat Institutes

Institutes

CIDB

7%
xx # students enrolled in institutions

21%

Source: EPU, MOHR, MOYS, MOA, MORRD, MOE, MOHE

Issues faced by main stakeholders


Stakeholders Issues

Employers

Employers may not be aware of the capabilities of graduates Many employers do not recognise the certifications due to the highly fragmented landscape today, with multiple ministries and industry issuing different certifications Students have a poor perception of skills training and view it as an option of last resort

Students/ Parents

Students (and their parents) lack funding or are unwilling to pay for skills training
There exists a mismatch between the types of training provided and market needs

Providers

Private skills training providers face regulatory constraints and long waiting process when setting up institutes
There is a shortage of funding for skills training Public service has limited access to Malaysian Skills Certificate holders.
Source : NKEA Education Lab

NEW DEMANDS ON TVET IN MALAYSIA

4 Major Thrusts to Transform the Malaysian Economy

Economic Transformation Programme: 8 National Key Economic Areas (NKEA) require 1.3 million TVET jobs Persons in '000
600

595

553

536 497
49

Non-TEVT TEVT

400

386

350 435

275 246
449 229 192

200

181
49

157
114

209

203 101 132 46 53

75
52

43

23

52 25 27

43 23 CCI

42
20

20

21

Retail Incremental 2020 GNI in RM Bn

Greater Education1 Tourism KL dev. 392 34 67

Financial Business Healthcare2 Electrical Agriculture Oil, Gas Services Services Eng. and Energy 121 59 35 53 29 131

Palm Oil

NKEA sectors

108

36

125

1.3 Mn (~41%) of NKEA jobs to be filled by TVET; top 5 sectors make up 82% of TVET jobs
1. Refers to clerical, service and technical staff & lower management positions 2. ~71% of jobs are production supervisor, administrative staff and production line leader Source: PEMANDU; BCG analysis

Based on historical trends, it will be challenging for skills training to meet the requirements for a high income economy
No. of certificates
60,000

Sharp increase in 2003 due to the establishment of PTPK in 2001

CAGR ('05-'09)

42,500 35,000

0%

40,000

-3% 10th MP target of 50% highly skilled workforce by 2020 and ETP target of 1.3Mn new TVET related jobs unlikely to be met

20,000

13,000

-5%

1,500 0

0%

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 SKM 1 SKM 2 SKM 3 SKM 4 and 5

Issuance of skills certificates has experienced little growth over the past 5 years despite various policy recommendations aimed at increasing its attractiveness

The number of certificates awarded for SKM1 and SKM2 has declined and leveled off over the last 5 years Challenge is to now increase enrolment in SKM 3, 4 & 5

Note: Numbers represent SKMs conferred by both public institutions and JPK accredited private institutions Source: JKMPMI, Feb 2010 / bcq Inception Report

REVITALISING TVET IN MALAYSIA

Major initiatives being undertaken


1
Re-branding of the TVET sector to mainstream and improve perception of TVET

3
Scaling up private TVET training provision

2
Rationalising TVET provisioning to meet economic & employment needs

SkillsMalaysia rebranding announced by Prime Minister of Malaysia, 11 Jan 2011


SkillsMalaysia aspires to raise public awareness and perception on the significance of skills training as a means to enhance the quality of the Malaysian workforce.

Efforts to standardise the quality of training curriculum through rigorous participation of industries; overcome the duplication of training and certification activities; and intensify promotion of skills training will be undertaken to uplift the current competency level of the workforce to a higher level of performance and SkillsMalaysia 2011 Campaign productivity.

Launch of SkillsMalaysia promotion campaign by the Dep. Prime Minister, 5 May 2011

Rationalising TVET offerings will require harmonising courses across multiple qualifications systems
Issues identified
a

Key next steps / way forward Rationalize qualification systems


Clearly articulate skills and vocational / technical qualification system

Multiple qualification systems Institutions not taking into account offerings in the broader system

Supply weighted towards b lower-level courses Inappropriate for future requirements of the Malaysian economy Overlapping courses and c institutions Delivery capabilities lack scale Prevailing system confusing to navigate and regulate

Rationalize course offerings

Review levels of course offering to target industry needs Build coherent approach for certificates and diplomas to match job levels required by employers Rationalise delivery of course offering and reduce duplication Between ministries Between institutions

Scaling-up private skills training provision


(EPP5, NKEA Education)
Key Initiatives

Promoting closer links with industry Harmonise skill training by regulatory reform

Appoint Industry Lead Body (ILB) for each skills sector to guide development of TVET in Malaysia

Employers
2

Harmonise accreditation across Ministries, industries, and private skills

training providers by expanding JPKs role as the single accreditation body Establish Board of Technologists to regulate, monitor and accredit all TVET programs

Increase availability Increase demand side funding (PTPK) to increase access to skills 3 of demand-side training Increase availability of HRDF funds for up-skilling of workforce funding Students
4

Conduct awareness Roll out SkillsMalaysia branding for all initiatives to promote skills training campaign Articulate professional pathway of qualified instructors

Articulate professional pathway for TVET by allowing Malaysian Skills Certificate holders to progress to selected degree programs Review the SKM evaluation system to enable ease of pathway articulation Allow academically qualified and experienced industry personnel to fasttrack to become TVET instructors Market SkillsMalaysia internationally to attract foreign students to enrol skills training programmes Buying places from private skills training providers to utilise excess capacity

6 Increase the number

Providers
7

Assist providers in into Malaysian TVET systems attracting students Review and simplify regulation to allow international students to enter

10th Malaysia Plan: TVET is critical


Target 40%2 skilled workforce1 by 2020 1,031,000 more managers & professionals

Policy Guidelines from the 10th Malaysian Plan

Improving the Perception of TVET and Attracting More Trainees A national media campaign to be developed and rolled-out Transformation of vocational schools system
Upgrading &Harmonising TVET Curriculum Quality in Line with Industry Requirements Standardize TVET curriculum Recognizing SKM as single TVET certification A Board of Technologists Malaysia will be established Malaysia-Japan International Institute of Technology will be established Developing Highly Effective Instructors Highly experienced industry personnel to become instructors ... Part-time working arrangements will be expanded Centre for Instructor and Advanced Skills Training (CIAST) will be expanded. A new CIAST to be established to add a further training capacity of 800 instructors each year Streamlining Delivery of TVET The current funding approach of TVET will be reviewed to provide financial assistance to students to study at SKM Level 3 The performance rating of TVET institutions will be utilized when making decisions for buying places in private TVET institutions RM150 million to train 20,000 school dropouts using the NDTS approach

1,434,000 more skilled workers

482,000 more semi-skilled workers

(SOURCE: 10th Malaysia Plan)

Conclusions
Malaysia aspires to move up the value chain to become a high income economy. A skilled workforce is critical to achieving this goal. Consequently, it is important to increase the enrolment in TVET and raise the overall quality. With the introduction of ETP, demand is expected to outgrow supply. By 2020, additional 3.3 Mn jobs will be created, of which 1.3 Mn will be TVET qualified. Issues faced by key stakeholders need to be addressed: 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: Highly fragmented landscape with numerous providers from various ministries resulting in multiple qualifications systems and non-uniform curricula standards Employers: Lack of recognition for TVET qualifications from employers / industry players A comprehensive set of initiatives is being developed to fill these shortfalls: Rebranding TVET to mainstream & improve perception of TVET Rationalize & streamline the TVET sector including provision, operating model and funding structure Scale up private skills training provision

THANK YOU

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