18-07-2025
Sim walking the talk for TVET
KUALA LUMPUR: In a move to champion technical and vocational education and training (TVET), Human Resources Minister Steven Sim will be sitting for the Malaysian Skills Certificate (SKM) to pave the way for its importance.
Sim is aiming to excel with some 100 industry leaders in the 5th level of the SKM, which is the highest band – for now.
The 5th level is the equivalent to receiving an advanced diploma that can secure a job placement.
'The Industrial Revolution 4.0 is a TVET revolution.
'An education programme should be training individuals for the real world by making them learn on the job and by practice,' Sim said during the National Economic Forum 2025 held here yesterday.
Sim said in order to invest in a long-term strategy to enhance the value of the country's economy, there is a significant need for diverse skills and talents.
He said the Cabinet has agreed to table an amendment to the National Skills Development Act 2006 to increase the levels of SKM to 6, 7 and 8, to enhance the quality of TVET in the country.
He said these levels were equivalent to an individual receiving a degree or a master's certification.
'We want to make sure the recipients are not just stuck at level 5 (advanced diploma), but to go all out to higher levels.'
He also hopes that the Bill would be tabled in Parliament this year.
'Through TVET, Malaysia can pivot to a high-value, innovation-driven economy by building skilled talent.'
He also claimed that traditional universities are not matched for the Industrial Revolution 4.0, which exists for skills.
'An education programme for our future generations should have two components.
'First, learning on the job, and second, learning by practice.
'In other words, a skills training programme or education programme for future talent must be able to adapt to the fast-paced changes in the industry.'
He highlighted a flagship programme under the ministry known as Academy In Industry (ADI), which allows students to directly learn within the business environment, in the real world.
'Instead of sitting in classrooms, we want students to learn directly within the business environment,' said Sim while announcing that the programme has almost 2,000 strategic partners from the ministry and 10,000 participants (employees).
'When this programme first started, there were about 40 participants in the first batch.
'After six months of on-the-job, hands-on training, these trainees became so skilled that their future employers said they could expect a starting salary of RM6,000 per month – which is much higher than the minimum wage.'
He also pointed out the Ilham programme, which aims to provide 20,000 structured internships focusing on job learning for a longer period without adding more time to their degree courses.
'Under this programme, we not only provide double tax deductions for all your internship expenditures, but allow small and medium enterprises (SMEs) in the outskirts to use Human Resource Development Corporation (HRD Corp) levy to pay their interns.'
Meanwhile, Science, Technology and Innovation Minister Chang Lih Kang, who spoke during a plenary session, reiterated the government's commitment to exploring measures to lessen pressure on the business community amid concerns over rising operational costs and new taxes.
Responding to calls for the Sales and Service Tax (SST) rate to be reduced to 4%, he said he would convey the concerns to the Cabinet, ensuring the Prime Minister is informed.
Acknowledging the difficulties faced by businesses, he said, 'We hope we can relieve some of the burden on the business community.
'I acknowledge the situation is not easy, and discussions with my Cabinet colleagues will focus on how to achieve this.'
He said this at the Chambers' Voice – Navigating Malaysia's Path Forward Fireside Dialogue with presidents of Chambers yesterday.
When asked about the perceived gap between positive economic indicators and the challenges businesses experience on the ground, Chang highlighted the importance of not solely relying on figures.
'We realise there is always a gap between the indicators and what people are feeling on the ground.
'That's why we need to engage with the business community to understand the real issues they are facing.
'While reforms are aimed at long-term benefits, we must also consider short-term pressures,' he added.
Malaysia's business community has been advocating for a revision of the SST, which recently increased from 6% to 8%, alongside concerns over the rising costs of doing business such as electricity tariffs and the planned reduction of fuel subsidies for RON95.
