KUALA LUMPUR (Feb 24): Some government-linked companies (GLCs) and private companies will take over the Technical Education and Vocational Training (TVET) programme.

Among them are Petroliam Nasional Bhd (Petronas), DRB-Hicom Bhd, Sunway Bhd and Malaysian Resources Corp Bhd, said Prime Minister Datuk Seri Anwar Ibrahim in his speech on the revised Budget 2023.

Petronas will lead the TVET training program in the oil and gas cluster located at Pengerang in Johor, Kimanis in Sabah, Bukit Rakit in Terengganu and Miri in Sarawak.

Meanwhile, DRB-Hicom will lead the automotive cluster in Pekan, Pahang; Sunway for the hospitality cluster while MRCB for the construction cluster.

“This initiative is needed so that [we will] be able to use government resources more effectively to produce TVET graduates who meet the skill requirements of the industry. Public-private collaboration through a new approach like this will continue to be explored for other areas or government services,” Anwar added.

Citing an example, Anwar said the Penang government has collaborated with the electrical and electronic companies that have been successful in providing jobs for TVET graduates with decent wages.

“Companies such as Intel, Motorola and Inari have [also] used the Penang Skills Development Center to organise training programmes tailored to their needs.

“The government intends to emulate this model on a pilot basis involving federal TVET institutions with a target of 50 companies, mainly the GLCs,” he added.

SOCSO to provide RM600 mil incentive for TVET graduates

Social Security Organisation (SOCSO) will provide an incentive of up to RM600 per month in a move to encourage the private sector to create higher-value jobs for new graduates, says Anwar.

A total of 17,000 Technical and Vocational Education Training (TVET) graduates will receive RM600 per month for three months on top of the salary offered to them, he said.

Notwithstanding that, he said, Socso will also provide incentives for employers to hire vulnerable groups, such as persons with disabilities, ex-convicts, homeless people and the hardcore unemployed people, for up to RM600 per month for a three-month period.

“Data showed that 90% of TVET graduates secured jobs, but 90% of them only earned low wages around RM2,000 per month. This cannot be accepted and changes need to be done for these TVET graduates to achieve wages of more than RM2,000.

“Government will encourage the private sector to hire [the new graduates] with high earnings,” he added.

On top of that, the government will cover the training fee of up to RM4,000 for gig workers to undergo the micro credential skills improvement programme.

With that, SOCSO will provide an allowance of RM300 million for gig workers who attend the programme as they may have foregone income.

The revised Budget has allocated RM40 million to help some 30,000 gig workers.

In addition, the RM1 billion fund under the Human Resource Development Corp (HRDCorp) will be used to implement skills training programmes for workers of registered employers who have accumulated levies.

In addressing the unemployment issues in the country, Anwar said the government-linked companies will offer 35,000 job opportunities to youths, TVET graduates as well as vulnerable groups and veterans.

Get our comprehensive coverage of the revised Budget 2023 here.