MBOT–KRI Impact Study 'Badges of Progress: A Study on Technology and Technical Talent Development in Malaysia'

30 September 2025, Kuala Lumpur — Malaysia’s aspiration to become a high-income, innovation-driven economy depends on the strength and relevance of its talent pipeline, particularly in technology and technical (T&T) occupations. Despite continuous policy attention to TVET, STEM education and industrial talent development, persistent issues such as underemployment, skill mismatch, and stagnant wage growth remain. Khazanah Research Institute’s (KRI) latest report, Badges of Progress: A Study on Technology and Technical Talent Development in Malaysia, in collaboration with Malaysia Board of Technologist (MBOT), explores the extent to which professional recognition and academic accreditation systems enhance the credibility, employability and labour market value of T&T talent.The report is organised into two parts. Part One: Contextual Analysis explores Malaysia’s T&T talent ecosystem, covering the current TVET education landscape, labour market outcomes of technology and technical talent, as well as job concentration and agglomeration benefits of regional clustering for technology and industry-related fields. Part Two: Badges of Progress, the case study portion of this report, examines the role and impact of MBOT on technology and technical talent development in Malaysia.Gaps in the TVET education landscape and labour market inefficiencies in utilising regional talent are among the challenges in Malaysia’s T&T talent pipeline

Despite various governments’ efforts to strengthen the T&T sector, the output of skilled TVET graduates is limited by the structure and availability of educational pathways, particularly in the limited availability of tertiary TVET institutions and certifications. The majority of the TVET institutions focus on lower-level certifications, while slightly under half offer qualifications at a diploma-level and above. Degree-level qualifications are even more limited, which restricts graduates’ ability to develop advanced technical skills. Meanwhile, T&T graduates show gaps in their adaptability to new and emerging industries, as available fields of study are constrained to industry-focused fields, while lifelong learning and upskilling opportunities are fragmented.The distribution of TVET courses in Malaysia largely mirrors the country’s regional industrial activity, with many technical and vocational institutions offering programmes aligned with the dominant industries in their respective areas. Industrial hubs like Kulim and Pekan have benefited from targeted manufacturing-oriented TVET, but many regions, especially Sabah and Sarawak, lack specialised, future-ready courses in high-growth areas like IT, limiting graduate employability and regional development. However, even with established economic clusters, they have not translated into effective local talent utilisation, with high-value R&D often retained offshore and weak collaboration among firms, institutions, and government undermining innovation. Many local workers are not effectively matched with available opportunities, which are often low-skilled and do not require professional recognition.Recognition of T&T professionals enhances confidence and motivation towards career mobility, but tangible progression is limited due to low employer awareness and utilisation

MBOT’s professional recognition system, anchored in the “badges” of titles like Ts. (Professional Technologists) and Tc. (Certified Technicians), has begun to establish itself as a valuable instrument for elevating career mobility. These recognitions have strengthened professional identity and act as signals for competencies across the spectrum of the T&T talent pipeline. Additionally, MBOT academic accreditation plays a critical yet underutilised role in Malaysia’s technical and technology education landscape – boosting graduate employability and early-career mobility, particularly for T&T diploma holders and younger graduates. This shows MBOT’s influence extends well beyond institutional benchmarking, underscoring accreditation’s dual function as a mechanism for quality assurance and a signal to the labour market.However, the full potential of recognition remains limited by sectoral awareness, inconsistent employer utilisation and weak linkage to tangible career rewards. The report reveals that many employers still misunderstand or underappreciate MBOT titles, hindering the formal integration of the recognition into human resource decisions. Despite its promising signal, the academic accreditation system remains underleveraged due to gaps in visibility and coordination. More than 40% of students only discovered their programme was MBOT-accredited after graduation, undermining the intended function of accreditation as a proactive career planning mechanism.Towards the cultivation of a stronger T&T talent

Enhancing Malaysia’s T&T talent calls for policy reforms that build on existing strengths while closing critical gaps in Malaysia’s technical and technological talent ecosystem. Central to this is the establishment of a responsive and industry-aligned talent pipeline, tailored training between education institutions and industry within industrial clusters, as well as stronger incentives for local recruitment, which are needed to address the underutilisation of our regional talent. Additionally, we emphasise the importance of embedding recognition frameworks into career progression, leveraging accreditation to improve employability and equity, and making recognition visible and valuable from early career stages onward. Taken together, these measures lay the foundation for a more resilient, inclusive, and future-ready workforce.This report is part of KRI’s research conducted in collaboration with MBOT. The research utilises data from various sources, including primary data collection from MBOT members through an online survey and a series of focus group discussions. The report is authored by Dr Mohd AmirulRafiq Abu Rahim,Wan Amirah Wan Usamah, Muhammad Nazhan Kamaruzaki, Hafiz Hafizi Suhaimi, Dr Diana Abdul Wahab, Dr Umawathy Techanamurthy with assistance from Dr Izma Syazana, Muhammad Iqbal Khairuddin and Khairin Ilaina Mohamed Amin. We also extend our appreciation to the MBOT team for their invaluable support.The report can be downloaded at new.krinstitute.org and www.mbot.org.my.