Govt urged to enact TVET Act to establish new education ecosystem

New Straits Times

23-05-2025

PUTRAJAYA: The government has been urged to enact a Technical and Vocational Education and Training (TVET) Act to ensure the effective establishment of a new education ecosystem.
Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said the proposal for the legislation was put forward by delegates during the One-Year Retreat Session following the 2024 Bumiputera Economic Congress.
"Among the proposals is the drafting of a TVET Act, aimed at ensuring that a new education ecosystem can be effectively implemented through coordination across all 12 ministries involved in TVET," he told reporters after the session.
Zahid added that the Bumiputera Economic Congress also proposed upgrading the National TVET Council through the establishment of a dedicated TVET Commission.
The commission, he said, will be responsible for coordinating and optimising the existing functions of the Council in a more focused and streamlined manner.
"This commission will not involve the creation of a new agency requiring additional civil service personnel or new financial allocations," he said.
Meanwhile, Zahid, who also chairs the National TVET Council, said the government will continue to champion efforts to ensure TVET graduates receive competitive, premium-level salaries.
His comments follow the release of a study titled "The 'Gaji Cukup Makan' Economy: When Higher Education Becomes an Economic Risk", conducted under the Malaysia Labour Market Insight Series.
He added that while the government does not impose salary levels, strategic engagements with industry players have produced meaningful outcomes for TVET graduates.
"We engage directly with employers, many of whom have formal agreements with us, both memoranda of agreement (MoAs) and memoranda of understanding (MoUs), committing to pay TVET graduates not the minimum wage, but salaries that reflect their skills and relevance to the job market," he said.
He added that many of these companies also offer internship opportunities before graduation and donate industry-grade equipment to TVET institutions, helping students better prepare for the workforce.
"As a result, most of these companies have agreed to offer premium salaries compared to other academic qualifications.
"So far, Malaysian Skills Certificates (SKM) Level 3 graduates are starting on salaries of around RM3,500, while those with Level 5 qualifications can earn approximately RM5,000," he said.
The study revealed that over 65 per cent of degree holders in Malaysia earn less than RM3,000 a month, a figure sufficient only to cover basic necessities, with little room to save, invest, or move up the socioeconomic ladder.