Malaysia's tech ambitions hinge on STEM talent, says Mosti
Science, technology, and innovation minister Chang Lih Kang says Malaysia must urgently grow its local STEM talent to retain high-tech investments.
PETALING JAYA : Malaysia risks losing high-value investments from global tech giants like Tesla and Amazon unless it urgently addresses the shortage of skilled talent, says science, technology, and innovation minister Chang Lih Kang.
Despite a nearly 10% increase in STEM enrolment over the past five years, Chang said Malaysia currently does not have enough skilled talent to meet the demands of fast-moving tech industries.
'Whatever we are doing now, we would only be able to see the impact 10 to 15 years from now. We need to plan ahead,' he told FMT in an interview.
Amazon Web Services (AWS) is investing RM25.5 billion through 2037 to set up a cloud region in Malaysia that is expected to support thousands of jobs in AI, machine learning, cybersecurity and software development.
Tesla meanwhile launched its best-selling Model Y in the country and is rolling out a network of ultra-fast superchargers with an investment of US13.5 million, as of mid- 2024.
'If we don't buck up, these investments will come down, or (investors) will look at other places to invest so that they have enough talent. This is the risk if we don't have enough talent,' said Chang.
The minister said Malaysia will in the short term open its doors to foreign talent while also working to upskill locals, including non-STEM graduates, through micro- credential programmes offered by agencies like Mimos and the Malaysia Board of Technologists.
'We work closely with the human resources ministry (and) TVET (institutions) as a way to improve their current skills, so that it is more tech-driven,' he said, adding that the collaboration is meant to build skills in robotics, coding and AI.
Chang also said the science, technology and innovation ministry (Mosti) is collaborating with the education and higher education ministries to introduce curriculum reforms, boost industry exposure, and nurture scientific curiosity from an early age.
Hands-on university projects, such as those introduced at Universiti Putra Malaysia and Universiti Malaya, are already yielding results, with graduates entering the workforce more job-ready.
The minister also pointed to flagship initiatives such as the Malaysia Techlympics, National Science Week, and Kembara Sains Borneo as part of a broader push to bring science to life for younger Malaysians, particularly those in rural areas.
'It was more conventional then (when I was a student). Now it is more interactive so that they (students) can understand science better,' said Chang, a former civil engineer and UPM graduate.
Despite this, industry experts say Malaysia continues to lose its STEM graduates to countries like Singapore, where engineers earn S$4,000 (RM13,250) per month on average — more than three times a Malaysian engineer's salary.
Chang acknowledged that currency disparities make it difficult for Malaysia to compete purely on salary.
However, he believes that developing a comprehensive ecosystem for high-value tech sectors could convince graduates to forgo the higher pay on offer elsewhere and remain in Malaysia.
If there is an ecosystem, they may have second thoughts, and may instead choose to enjoy Malaysia's lower cost of living while being closer to their parents, he said.
Chang pointed to aerospace engineering as a sector where graduates often struggle to find relevant jobs in Malaysia and end up working in unrelated fields.
'By attracting the space industry in Malaysia, we slowly build an ecosystem and (create) more job opportunities,' he said, pointing to recent projects, including a remote sensing satellite and a proposed rocket launch facility in Malaysia.
All in all, Chang said the vision of Malaysia becoming a high-tech, innovation-driven economy by 2030 depends on whether the country can inspire, train and retain the next generation of scientists, engineers and technologists.
'It's not that science is better than social science. It's just that the need for science is growing fast in every industry,' he said.
'Students need to have more curiosity. Even arts stream students who learn coding can be more competent and competitive at their workplaces.'
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