Datuk Dr S. Subramaniam: In our goal of achieving a high-economic model, great emphasis has been placed on transforming the workforce. We want to increase the ratio of skilled and highly skilled workers in Malaysia - from the present 24% to about 33% in the next few years.

 

At present, a significant portion of the workforce is low-skilled, without any kind of formal training. So we need to train them to be able to work at a higher level of skill. The new workforce we aim to develop will be one driven by knowledge and have the capacity to think  creatively and be open to innovation.

 

Also, they should have other positive work ethics such as honesty and the desire to be productive. If we can achieve this, I am sure we will be able to move faster towards achieving the goals of the New Economic Model.

 

 

Datuk Dr S. Subramaniam: As far as the status of human capital development in Malaysia is concerned, we have a very long tradition of a well structured and well legislated human resource management, which is older than many countries in the region.

 

For example, our Employment Act is one of the oldest Acts in the country, the Trade Union Act goes back to the 1950’s, and our Occupational Safety and Health Act can be traced to as far as the later part of the 19th century. So this forms the tradition of the management of human resources in Malaysia.

 

However, in some ways, we probably did not keep up with changes as rapidly as others. As such, a sizeable percentage of the workforce only has training up to school level. This has resulted in a perennial complain by industry and investors that it is difficult to identify and get sufficiently skilled labour in the country, as well as problems with linguistics and communication.
 

So, we are now in the midst of restructuring the entire system of human capital development. We are starting with the school system - from the secondary schools, to training institutes, to colleges to universities. We hope that the entire system will work cohesively and holistically to produce a generation of workers who will have those qualities which I mentioned in the previous question. With this, and coupled with our tradition and culture of industry, I am sure we will become a very formidable workforce in this region if not the world.

 

The Human Resource Ministry has been given a lot of responsibility towards identifying and restructuring some of the methods currently in use so that we can meet the expectations of the New Economic Model. One of the main things we have done is to set up the National Council for the Coordination of Skill Development.

 

One of the first tasks for the Council is to coordinate the skills development practices in the country, which has been fragmented between the private sector, government, and institutes. Through coordination, we aim to ensure that every aspects of skills development is geared towards the national goal of producing workers who will meet the expectations of industry.

 

We are going to standardise the syllabus, training methodology and certification process, as well as enhance certification procedure to be on par with international practices. Also, we hope to ensure that the curriculum is in line with international standards.

 

Apart from that, we have embarked on an ambitious programme, where all skill training in this country is driven by the needs of the industry. We want to ensure that the industry has a very strong role in the development of skill training, and that industry players become part and parcel of human capital development in the country.

 

We hope that the end result of these changes will be workers who are internationally competent and whose skills are on par with those from the best parts of the world. Not only will they meet the expectations of the industry, but their productivity will increase as well and they will be able to contribute to the success of the enterprise in which they are employed.

 

 

Datuk Dr S. Subramaniam: This issue has been raised before and I’ve already touched upon it in my previous answers. It relates to the relevance of the courses to the requirements of the industry. Generally, universities create people who are capable of thinking, and who have skills which can be modified and utilised in different situations so that they can meet the expectations of a changing market.

 

However, sometimes the needs of industry are very specific. So the Cabinet Committee for Human Capital Development has the challenge of ensuring that university training is integrated with industry. As a result, many programmes have been recognised by which our graduates would have a strong exposure to industry during their undergraduate training. Through such exposure, they will be able to acquire the skills required by the industries.

 

 

Datuk Dr S. Subramaniam: There are many agencies to assist SMEs in human capital development. One is SME Corpation which is the agency which coordinates all activities of SMEs such as funds and advice.

 

For SMEs contributing to the Human Resources Development Fund, the Fund has been a very strong proponent of good human capital and human resource development of SMEs. Many programmes have been tailor-made to meet expectations of SMEs. SMEs have been very strongly motivated to modernise their management system and the way they function, so they recognise the value of human capital development including investing in continuous training.

 

Thus this paradigm shift in the mentality of the SMEs is expected to be more modern. By acquiring a new culture and new directions, they can meet the expectations of a changing economic set up.