ANALYSIS - TVET & FUTURE WORK

25 JUNE 2019

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Understanding the Concept

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• Technical and Vocational Education and Training (TVET) is concerned with the
acquisition of knowledge and skills for the world of work
• These include : Apprenticeship Training, Vocational Education, Technical Education,
What is TVET? Technical-Vocational Education (TVE), Occupational Education (OE), Vocational
Education and Training (VET), Professional and Vocational Education (PVE), Career
and Technical Education (CTE), Workforce Education (WE) and Workplace
Education (WE).
Source : UNESCO - UNEVOC

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• Future of work is a result of many forces of change affecting three deeply connected
Future of Work dimensions of an organization: work (the what), the workforce (the who), and the
workplace (the where).
Source : Deloitte Insights

…..it is imperative to ensure that our TVET system and graduates are ready to embrace the future of works
as most of the future jobs are demanding more reskilling and upskilling.

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Realizing the Dream

• One of the earliest MTUN University that collaborates with German

Institutions
University of • UMP introduced the Double-Degree programme with 2 German University
Malaysia, Pahang namely Karlsruhe University of Applied Sciences (HsKA) and Reutlingen
University of Applied Sciences
• This proactive steps ensures that UMP graduates are international and
future-proof

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Minister of Education Mandate 2019 :
Education for All

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• Harmonized accreditation system with • MOE will resolve recognition issues of
quality assurance for enabling student qualification from vocational colleges to
Accreditation mobility in TVET institutions, including Vocational allow equal opportunity for KV graduates to
those in the Malaysian Technical University pursue higher education
College
Network (MTUN) • Vocational colleges to be placed parallel
with the other institutions of TVET in line
with the industry’s direction
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• MTUN should move towards 5
Fachhochschule system in Germany and
• MTUN and polytechnics will be aligned
MTUN measured with the production of technical
to ensure opportunities for polytechnic
graduates and the resolution of technical
graduates to continue their education
issues Polytechnics • Polytechnics and community colleges
have also opened up opportunities for
the Tahfiz students
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• MOE will improve the quality and
delivery of TVET programmes through an
Quality of industry-led approach and expanding
Source : YB Minister of Education’s Mandate 2019
TVET TVET funding to increase enrolment
• MOE will make TVET on par with other
choices; not a second or an alternative
option

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Future of Works : Change Dimensions

Source : Deloitte Analysis 5

Future of Works : How Does It Change Us? 1/2
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• Machine-powered and data-driven but they will also likely require human skills in areas such as problem-
solving, communication, listening, interpretation, and design
Work • Shift toward machines, especially for repetitive and routine tasks which could eliminate upward of 14% and
disrupt 32% of today’s jobs - Organization for Economic Cooperation and Development (OECD)
• However, technologies could be used to augment the efforts of the workforce rather than replace them. World
Economic Forum projected that nearly 1 million jobs may be lost but another 1.75 million will be gained.

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• Current workforce are more mobile, flexible and nimble to promote more efficiency and creativity in
composing an organization’s workforce
Workforce
• Organizations have broad continuum of options for finding workers, mainly going for managed services and
outsourcing, independent contractors, gig workers and crowdsourcing

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Future of Works : How Does It Change Us? 2/2

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• Organizations are now able to orchestrate a range of options as they reimagine workplaces, from the more
traditional co-located workplaces to those that are completely distributed and dependent on virtual interactions
Workplace • Future workplace are more distributed with virtual offices and virtual interactions. It is not geographically and
physically restrictive to provide flexibility and agility to the future workforce.

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Global Development : Germany
• The German labor force is expected to decline by approximately 3.5 million professionals between 2015 - 2030
and unemployment considerations are at risk of being overlooked in the short-term search to bridge the skills gap1
Current Analysis
• There are dramatic declines in the automotive manufacturing sector across all scenarios, recording a drop of
at least 50% in employment in every instance1
• In a country with an expected tight labor market, SMEs that do not adopt new technologies will find it extremely
challenging to meet customer demand1

The Future of Work in Germany

• Federal Ministry of Labor and Social Affairs predicts that

750,000 jobs will be lost to digitalization by 2030 but these
will be offset by one million new jobs in sectors that grow
due to implementation of digital technologies1
• A few main scenarios that causes this are implementation and
adoption of advance technologies, process automation
and new emerging technologies, mainly the development of
self-driving cars2
• However, a few sectors with heavy digitalization and
advance technology adoption are showing positive sign

Source :
1. EY Study - What if employment as we know it today disappears tomorrow?
2. “Re-Imagining Work White Paper: Work 4.0.” - Federal Ministry of Labor and Social Affairs, 2017

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Future of Works : How Does It Affects Malaysia?

• By 2030, it is expected that 3.9 FTE are potentially

displaced due to automation in Malaysia (marked
in blue circle)
• China (marked in red circle) is expected to
experience the biggest impact with 111.2 FTE
potentially being displaced while German (marked
in yellow circle) is expected to have 9.1 FTE being
displaced by 2030
Source : McKinsey Global Institute

• By 2022, no less than 54% of all

employees will require significant re-
and upskilling1
Re- &
Upskilling is • 54% of all jobs in Malaysia could be at
the Key high risk of being displaced by
technology in the next two decades2 –
this issue can be solved mostly by re
and upskilling
Source :
1. WEF – Future of Jobs 2018
2. The Times They Are A-Changin’: Technology, Employment, and the
Malaysian Economy, Khazanah Research Institute (2017)

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TVET & STEM : Malaysia’s Dilemma

TVET & STEM is Un-popular Despite the High Demand

65%
of children entering primary
school today will end up
working in completely new
job types that don’t yet exist1

54%
of all jobs in Malaysia could
be at high risk of being
displaced by technology in
the next two decades2

• Only 13% of all upper secondary students are pursuing
TVET courses; while at higher education level less than 9%
are in polytechnics
• Wage differential between TVET holders and other types of
graduates is one of the factors
• Only about a third of all students at upper secondary and tertiary
levels are enrolled for STEM related subjects
• The government’s 60:40% target ratio for science to arts
students has yet to be achieved

Source : School to Work Transition, Khazanah Research Institute (2018)

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Way Forward – Professionalization of TVET
1 • Take the best practices to be implemented in Malaysia – Enforcement and Regulations to ensure that TVET
Professionals has to have minimum official qualification and recognition to preserve services Quality Assurance
Benchmarking with • The Roles of Chambers of Commerce – Malaysia can adopt the chambers of commerce practices where industry
the German System are heavily involve in deciding the future of work and workforce
• Competitive Wages – Government to work together with the industry on salary scale that best fit for TVET
Graduates’ in order to increase enrolment in TVET & eliminate the perception of TVET as second choice

2 • Enhancing Competencies of TVET Graduates – KPM, Professional Bodies and Industry to work hand in hand in
developing CPD/Upskill/Reskill Program development with Higher Institutions & Training Centres to get the
Higher education’s workforce to be ready to embrace the future works (technology and skill based)
upward mobility & • Industry Driven Programme & Curriculum – Institutions of Higher Learning and Industry should work hand in
hand in developing a robust, flexible and industry driven TVET programme and curriculum that will be able to meet
graduate’s quality the digitization and advance technology adoption by the industry.
• Seamless Articulation – The effort of Bachelor of Technology Programme by MTUN should be the main
agenda to professionalize TVET and provide a pathway for TVET graduates towards higher education

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• Professionalizing TVET Program – Professionalize program in TVET institutions through MBOT Accreditation
Role of MBOT as and standard to minimize the gap & mismatch between graduates and industry
Professional Body • Internationalization – MBOT to work closely with international professional body and institutions to promote talent
mobility, cross recognition and create values for TVET graduates and professionals

…..it is a collective effort by everyone to ensure that TVET is uplifted and our graduates are well equipped to
embrace and adopt the technology and skilled driven environment and in the end, are ready to be the
workforce of the future.
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The Conclusion

Are the Minister of Education’s expectations realistic?

• Electricite de France has implemented in-house training beginning with

Apprentice at 17 years of age as a staff, through continuous learning
programmes which can end up at 35 years of age, as an Engineer
Relevant Points
• Canada has upgraded their Community Colleges to Continuous Live-long
from Developed
Training Provider with the latest equipment provided by industry
Economies
• Germany ensures the close links with industry by having their Chambers of
Commerce full-time officers in Universities to ensure that their training is relevant
with the current needs of industry

…..YB Minister’s expectations are REALISTIC and DOABLE!

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 Contact Us

Malaysia Board of Technologist

A1-3-1, Ayer@8, Jalan P8G,
www.mbot.org.my
Presinct 8, 62250 Putrajaya
Telephone : 03-8800 6268
Email : info@mbot.org.my

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