Date: Thursday 23-May-13


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Invest in Malaysia

Manpower for Industry

2. Manpower Development

The Department of Skills Development (DSD), under the Ministry of Human Resources, was established in May 1989 which previously known as the National Vocational Training Council (NVTC). Effective 1 September 2006, (NVTC) has changed its name to become the Department of Skills Development (DSD) upon the gazetting of the National Skills Development Act (NASDA) [Act 652] For the purpose of formulating, promoting, and coordinating Malaysia's vocational and industrial training strategy and programme in keeping with the country's technological and economic development needs.

The DSD coordinates the setting up of all public and private training institutions, evaluates the demand for existing and future skills, identifies future vocational and industrial training needs and will continue to develop standards under the National Occupational Skills Standard (NOSS). To-date, there are more than 700 certified standards which cover certificate, diploma and advanced diploma qualifications. Under NOSS, 20 major industry sectors have been identified for future standards development.

2.1 Facilities for Training in Industrial Skill

In Malaysia, vocational and technical schools, polytechnics and industrial training institutions prepare youths for employment in various industrial trades. While they are mostly run by government agencies, several private initiatives complement the government's efforts in producing the skilled workers needed by industry.

The main government agencies involved in training are:

Ministry of Human Resources currently runs 21 industrial training institutes (ITIs). The ITIs offer industrial skills training programmes at basic, intermediate and advanced levels for pre-employment or job entry level. These include apprenticeship programmes in the mechanical, electrical, building and printing trades as well as programmes to upgrade skills and train instructors. The Ministry also operates the Centre for Instructors and Advanced Skills Training (CIAST), the Japan-Malaysia Technical Institute (JMTI) and four advanced technology training centres (ADTECs).

Ministry of Higher Education, established in March 2004, supervises public and private universities, 27 polytechnics and 72 community colleges to prepare skilled manpower for industries. At the post-secondary level, the formal training conducted in polytechnics and community colleges aims to produce trained manpower at the semi-professional level in engineering, commerce and services sectors.

Ministry of Education, runs more than 90 technical schools offering technical and vocational courses. School leavers from the technical schools can either seek employment at entry level or pursue their post-secondary education at diploma level in Polytechnics or certificate level in Community Colleges or other training institutions under the supervision of other ministries.

Ministry of Youth and Sports, which provides basic, intermediate and advanced levels of industrial skills training through its 16 National Youth Skills Training Centres and Higher National Youth Skills Training Centre. Short-term courses and skills upgrading programmes are also being conducted.

Majlis Amanah Rakyat (MARA), or the Council of Trust for the Indigenous People under the purview of the Ministry of Rural and Regional Development. MARA operates more than 20 skills training institutes in different parts of the country which offer programmes at basic, intermediate, advanced and professional levels.

2.2 Human Resources Development Fund

The Human Resources Development Fund (HRDF) was established in 1993 and administered by the Human Resources Development Council (HRDC). In line with corporatisation exercise, the HRDC is now known as Pembangunan Sumber Manusia Berhad (PSMB).

The HRDF operates on the basis of a levy/grant system. Employers who have paid the levy will qualify for training grants from the fund to defray or subsidise training costs for their Malaysian employees.

Manufacturing companies contribute as follows:

Companies that employ 50 employees and above 1% of employees' monthly wages
Companies that employ less than 50 to a minimum of 10 employees, with a paid-up capital of RM2.5 million or more 1% of employees' monthly wages
Companies that employ less than 50 to a minimum of 10 employees, with a paid-up capital of less than RM2.5 million are given the option to register with PSMB. 0.5% of employees' monthly wages

Currently, the rate of financial assistance is 100% of the allowable costs incurred for training in Malaysia and up to 50% for costs incurred overseas, subject to the availability of levy in the employers' accounts with PSMB.

To date, PSMB has developed and implemented various schemes to provide highly trained workforce to the industries, namely the apprenticeship scheme, training grant schemes as well as other basic skills training schemes.

Under the apprenticeship scheme, employers are eligible for a 100% rate of financial assistance on the allowable training costs such as apprentices’ monthly allowances, insurance premiums and consumable training materials.

To date, these schemes had cater for, various industries such as mechatronics, hotel and tourism , manufacturing, information technology, tools and dies, and wood based.

To facilitate employers in sourcing for suitable training programmes over the Internet, PSMB has developed the HRD portal at http://www.hrdportal.com.my. This portal acts as a one-stop centre that allows training providers to market their training programmes more effectively and efficiently through the interactive facilities available in the portal.

For more information on HRDF please visit http://www.hrdf.com.my

2.3 Management Personnel

As at 2010, 92,979 degree and 57,185 diploma holders graduated from Malaysia's 20 public higher education institutions (IPTA) and other private higher education institutions (IPTS). These graduates are from various disciplines ranging from business management, information technology, engineering, medicine, biotechnology, science and mathematics to art and design.

Besides universities and colleges, agencies like the Malaysia Productivity Corporation, the Malaysian Institute of Management and the Malaysian Institute of Personnel Management also provide training for management personnel. In addition many of Malaysia's management-level personnel have been educated overseas.



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