‘Higher salaries for TVET grads if GLCs, private sector involved in training’

KUALA LUMPUR – The government is solving the issue of low salaries of technical and vocational education and training (TVET) graduates by having more government-linked companies (GLCs) and the private sector take over parts of the management of TVET institutions, the International Trade and Industry Ministry said.

Deputy Minister Liew Chin Tong said besides ensuring their training would meet industry needs, this approach would also increase the employability of TVET graduates and ensure they are better paid.

“This problem of disproportionate salaries for TVET graduates has been identified by the chairman of the cabinet committee on TVET, the deputy prime minister (Datuk Seri Ahmad Zahid Hamidi). 

“He recommended that TVET graduates be paid a salary of at least RM3,000 a month. 

“Our wage structure is too low due to the presence of many unskilled foreign workers. 

“When employers continue to hire unskilled foreign workers, there is no incentive and encouragement for companies to pay fair wages to our skilled citizens,” Liew said in the Dewan Rakyat today.

He was replying to a question by Datuk Seri Amirudin Shari (Gombak-PH) who asked the ministry about identifying new sectors for TVET students as a way to increase job opportunities in new high-tech industries.

“It is suggested that GLCs or selected private companies take over the management of part of the TVET institutions,” Liew said, adding that Prime Minister Datuk Seri Anwar Ibrahim (Tambun-PH) had announced this when tabling Budget 2023.

“The old approach where each ministry works separately to manage TVET institutions is no longer relevant and adequate,” Liew added.

Liew also said the government is aware that Malaysia’s current economic model “is outdated” as characterised by low wages, low skills, low technology and low productivity.

“These will not help the people, especially our youth. An economic paradigm shift towards a high-skilled, high-tech, high-productivity economy, with reasonable wages, must be developed for the future of the country and the people.” 

The cabinet committee on TVET is to coordinate all TVET institutions and various relevant ministries such as education, higher education, rural and regional development, youth and sports, and human resources. – The Vibes, March 22, 2023