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Chapter 1: Introduction
This report is part of the research pillar within KRI, which focuses on addressing structural challenges in skills development, work force transitions and job quality. Within this broader objective, the current study centres on the T&T talent pipeline, an area gaining increasing policy attention as Malaysia advances toward higher-value industries and digitalisation.
The research is conducted in collaboration with the Malaysian Board of Technologists (MBOT) and takes an independent, evidence-based approach to examining the state of T&T professionals in Malaysia. The report explores how institutional mechanisms, such as certification, accreditation and regulatory frameworks, shape labour market outcomes in T&T occupations and how they can be improved for greater impact.
This report encompasses seven chapters, split into two parts as outlined below:
Chapter 1 briefly introduces Malaysia’s development, particularly in technology and technical-related industries and education. This chapter also includes the research objectives and methodological framework used in this report.
Part One: Contextual Analysis consists of four chapters, exploring the current TVET education landscape (Chapter 2),labour market outcomes of technology and technical talent (Chapter 3), and job concentration and agglomeration benefits of regional clustering for technology and industry-related fields (Chapters 4 and 5).
Part Two: Badges of Progress (Chapter6), the case study portion of this report, explores the role and impact of MBOTon technology and technical talent development in Malaysia.
Lastly, Chapter 7 bridges research to policy by summarising the key findings of the report and bringing forward a set of policy recommendations.
Chapter 2: Training technical talent: A study on Malaysia’s TVET education landscape
- The output of TVET graduates’ skills and qualifications is influenced by the type of available institutions
- Diverse TVET institutions serve different socioeconomic and development needs but have resulted in fragmented programme quality and outcomes.
- Only about half of TVET institutions offer tertiary-level qualifications, with unequal distribution between states.
- Upward mobility is restricted for TVET graduates, as few options exist for higher-level or post graduate training within the TVET systems
- Availability of high-demand tertiary TVET courses echoes regional industrial activity, but there is still room for improvement
- TVET course offerings are generally strategically aligned with regional industries, with examples such as manufacturing in Kulim and Pekan.
- Proximity to industries can allow for smoother integration of TVET’s practical components, but some districts still offer generic courses that are not aligned with regional industry needs.
- Geographical imbalances in TVET access persist, especially in less industrialised regions, limiting opportunities for students and hindering potential local industrial growth.
- TVET-specific life long learning channels are fragmented, with opportunities constrained to specific fields or industries
- Lifelong learning in Malaysia's TVET sector is fragmented and uneven, with limited post-graduate pathways for those in purely TVET streams.
- Micro credentials and professional certifications vary greatly between fields, dependent on industry linkages and institutional capacity.
- Professional frameworks like MBOT offer promising recognition and career progression, helping to formalise technical competencies
Chapter 3: Output and Outcomes of Malaysia’s Technology and Technical Talent
- TVET initiatives are drivingT&T graduate output
- Engineering, Manufacturing and Construction graduates are making up more than 60.0% of the total T&T graduates.
- While the output is significant for a steady talent supply to industrial-related sectors, field diversification is needed to support future demand and economic growth, as outlined in the key national development framework
- Mismatch among T&T talent persists, despite many having jobs
- Engineering, Manufacturing andConstruction graduates are making up more than 60.0% of the total T&T graduates.
- While the output is significant for a steady talent supply to industrial-related sectors, field diversificationneeded to support future demand and economic growth, as outlined in the key national development framework.
- T&T-related Services sectors have better prospects
- Engineering,Manufacturing and Construction graduates are making up more than 60.0% of the total T&T graduates
- While the output is significant for a steady talent supply to industrial-related sectors, field diversification is needed to support future demand and economic growth, as outlined in the key national development framework.
Chapter 4: Understanding Regional Potentials for Technology Advancement Through Spatial Employment Analysis
- Urban centres drive growth but deepen spatial divides
- Urban states like Kuala Lumpur,Selangor, Penang and Johor lead in high-value sectors such as manufacturing,ICT and finance, benefiting from infrastructure, foreign investment, and global integration.
- In contrast, rural regions likeSabah, Sarawak and Pahang remain dependent on agriculture and mining, constrained by limited infrastructure and diversification.
- This polarisation creates a fragmented economic geography, with industrial hubs spatially disconnected.
- Job concentration favours big cities, leaving rural areas behind
- Urban areas concentrate jobs in dynamic sectors with growing demand, attracting skilled talent and reinforcing wage growth.
- Rural labour markets face declining demand in traditional sectors due to automation and market volatility. This divergence results in unequal job opportunities and limited upward mobility outside urban hubs.
- Corridor-based development helps but needs deeper integration
- Economic corridors such as ECERand SCORE have catalysed manufacturing and construction in transitional states like Kedah and Terengganu.
- These efforts show potential for diversifying rural economies, but low competitiveness persists without strong policy integration.
- To build an inclusive labour market, urban-rural links must be reinforced through coordinated planning and investment.
Chapter 5: Tapping Aggolomeration Benefits for Technical and Technology Talent Development
- Tapping agglomeration benefits has been an integral part of the Malaysian regional development strategy
- The focus of regional development has shifted from basic infrastructure provision to building industrial base and urbanisation.
- Structure and local planning documents serve as the operational arms to translate national aspirations and agendas. Such as through:
- Industrial parks
- Special economic zones
- Science parks
- Technical and technology-based economic activities are concentrated in major urban areas
- However, there are potential of designated regional industrial hubs especially for propulsive sectors to drive innovation and advance T&T activities.
- Among the advantages are :
- Availability of raw materials
- Availability of lands
- Infrastructure readiness and continuous commitment
- Industrial interconnectedness.
- Despite the presence of economic clusters, a thick labour market for T&T talents can still be a challenge
- Local T&T talents are not effectively matched with jobs offered, highly likely due to the economic activities.
- Job opportunities in designated economic hubs and aspirational sectors mayunderutilise local T&T talents. Most jobs are non-executive and require low technical skills, and professional recognition is not a requirement
Chapter 6: Realising Badges of Progress: MBOT’s Role in Professional Recognition and Academic Accreditation
- Professional recognition enables but unevenly delivers
- Recognition boosts confidence and career mobility, especially among Graduate and Certified Technicians.
- Yet, returns are not uniform:women, early-career professionals and those in low-wage sectors face lowergains.
- Uptake is often reactive, with limited awareness and poor planning, especially post-graduation,
- Academic accreditation boosts readiness, but systemic barriers remain
- MBOT-accredited graduates show better job alignment and faster entry into the labour market.
- However, academic accreditation awareness is low and wage returns remain modest, especially from transitionalinstitutions.
- Without reform in hiring, promotion and compensation, accreditation alone is insufficient.
- Trust and value depend on better communication and early-career engagement
- Member satisfaction varies:mid-career professionals fare better; entry-level members remain dissatisfied.
- Limited outreach and unclear returns undermine perceived value, especially in private sector.
- Strengthening MBOT's role requires proactive onboarding, communication and institutional visibility.
Chapter 7: Enhancing the T&T Talent Landscape Through Informed Policy Recommemdaions
Our recommendations are grounded in the realities of technology and technical talent in Malaysia. They are not designed to reinvent the wheel but to strengthen the spokes that connect our talent. The three policy pillars and their related recommendations are summarised as follows:
Pillar 1: Establish a Responsive andIndustry-Aligned Talent Pipeline
Recommendations:
- Strategically broaden the availability of higher-level TVET programmes
- Strengthen MBOT’s role in the broader TVET and lifelong learning landscape
- Encourage job and talent creation inT&T-related service sub-sectors
Pillar 2: Strengthen Regional and IndustryTalent Matching
Recommendations:
- Enhancing regional integration through stronger industry-academia coordination
- Promote the development of industrial cluster-specific training programmes
- Incentivise the hiring and training of local and regional talent
Pillar 3: Elevate Social Recognition ofTechnical Professions
Recommendations:
- Institutionalise professional recognition framework for real returns
- Reposition MBOT accreditation as a strategic tool for graduate employability, institutional visibility and wage equity
- Strengthen recognition value through career integration, early support and institutional visibility
