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MEF Press Release

Employers welcome focus on TVETFriday, 21 October 2016
Press Release

​​KUALA LUMPUR: MEF supports the government’s initiatives under the National Blue Ocean Strategy to strengthen technical and vocational education and training (TVET).

Under the Budget 2017 Announcement which was tabled by Prime Minister YAB Datuk Seri Mohd Najib Tun Razak in Parliament here today, a total of RM4.6bil had been allocated for TVET.

Based on the NBOS, four TVET intuitions will become polytechnics, while another four vocational colleges and one more would be transformed into a training institute for TVET trainers.

“The government’s focus on development of TVET is very much welcomed by industry as this will help fill the gap of skilled workers in Malaysia,” said Executive Director Datuk Hj. Shamsuddin Bardan.

The development of highly skilled human capital is essential to helping Malaysia make the shift towards higher‐value and knowledge intensive activities which are the hallmarks of an advanced nation.

“Investments in human capital are also vital to the improvement of personal wellbeing due to its many socio‐economic benefits. RM90 million for improvement of English is also positive,” he said.

The initiatives under the 11th Malaysia plan are projected to generate approximately 1.5 million new jobs by 2020, of which 60 per cent require TVET‐related skills.

Malaysia’s skilled workforce is currently at 28 per cent. Under the 11th Malaysia Plan, this is expected to increase to 35 per cent by 2020.

“There is also a need to rebrand and revamp jobs through the use of higher technology and equipment. Rebranding and revamping of jobs may also make the jobs such as 3D jobs more acceptable to locals, and at the same time reduce the number of unemployed graduates,” said Datuk Hj. Shamsuddin.

A total of RM220mil was allocated to upgrade educational equipment in TVET institutions, as well as RM360mil for Skills Development Fund Corporation, and double tax deduction to be given on expenses incurred by private companies to provide Structured Internship Programmes for students under TVET.

The ED also commended the government on streamlining the 21 categories of individual tax reliefs which will be combined as the lifestyle tax relief, which also includes the purchase of printed newspapers, smartphones and tablets, internet subscriptions as well as gymnasium membership fees.

He said the initiatives to boost internet capability and expansion of broadband infrastructure would propel Malaysia further forward towards high‐income nation.

However, he said taxi drivers’ contributions to SOCSO should not be pooled with the joint contributions of employers and employees as taxi drivers are self‐employed.

For further information, contact the MEF Headquarters at 03‐7955‐7778 or fax 03‐7955‐9008, or email


budget,  MEF,  Shamsuddin Bardan
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