Malaysia has in its latest budget allocated more fund to boost high-tech workforce.
Its Prime Minister Anwar Ibrahim said in his budget speech last Friday that as high-growth industries gain ground, the demand for local talent in Technical and Vocational Education and Training (TVET) intensifies.
“To that end, the National TVET Council will strengthen the TVET ecosystem in a more holistic manner, including the possible introduction of a dedicated TVET Bill,” he said.
According to him, next year, the allocation for TVET will increase to MYR 7.9 billion ($1.87 billion), up from MYR 7.5 billion ($1.77 billion).
“Opportunities for TVET education and training are widened, particularly those that support high-priority sectors,” he noted.
Meanwhile, the National TVET Council will receive MYR 45 million ($10.65 million), among others, to impart digital technology and artificial intelligence (AI) knowledge to 10 thousand tahfiz and pondok students through Program IPT@Komuniti.
The MOE TVET institutions will also receive MYR 1.3 billion ($310 million) for the purpose of educating 79 thousand TVET students.
With a fund of MYR 3 billion ($710 million), HRD Corp will offer 3 million training opportunities, especially in the high-tech, digital and energy transition sectors.
PTPK will also provide financing of MYR 650 million ($154 million) to benefit 25 thousand trainees, especially in New Industrial Master Plan (NIMP) fields such as AI, electric vehicle (EV) and semiconductor.
GiatMARA will also offer training to 13 thousand individuals from target groups including gig workers.
It is noted that since the outbreak of the COVID-19 pandemic, Malaysian central bank has channeled over MYR 29 billion ($6.86 billion) to more than 86,000 small and medium enterprises (SMEs) under the fund.
More than MRY 32 billion ($7.57 billion) will be to support SMEs’ financing.
To broaden the outreach, the fund will shift towards guarantee-based support, focusing on segments of the society with limited access to financing, as well as high-impact activities, such as digitalization, automation, innovation and green transition.
“Micro, Small, and Medium-sized Enterprises (MSMEs) are encouraged to adapt to technology and digitalization,” said Anwar.
According to him, Development Financial Institutions (DFIs) are providing nearly MYR 1 billion ($240 million) in financing and grants to support the automation of processes and digitalization of business operations.
The Malaysian Communications and Multimedia Commission (MCMC) will provide MYR 350 million （$82.82 million） to empower NADI Centers, including mentoring rural entrepreneurs to increase their income through online business.
Meanwhile, to complement social protection and encourage Employees’ Provident Fund (EPF) contributions, gig, e-hailing and p-hailing workers, will be given matching contribution incentives of up to MRY 600 ($142) annually or MYR 6000 ($1420) over a lifetime under iSaraan Plus.
The i-Saraan scheme will also be continued for other informal or self-employed workers with matching contributions of up to MYR 500 ($118) annually or MYR 5000 ($1183) over a lifetime.
It is noted that the Gig Workers Bill 2025 has made Social Security Organization (SOCSO) contributions compulsory for gig workers to contribute to SOCSO.
According to Anwar, the government agrees to bear 70 percent of the contributions to the Self-Employment Social Security Scheme for gig workers in sectors that are yet to be mandated who register for the first time; while the incentive is 50 percent for the second year.