Overall, Malaysia’s enrolment rate has been in decline since 2016.
In 2020, Malaysia stood at 42.57%, while the world average based on 113 countries was 51.98%.
Malaysia’s enrolment rate is significantly lower compared to advanced economies such as, for example, Finland (95%), Singapore (93%), the United States (88%), Germany (73%) or Japan (66%).
Consistently with the OECD expectations, the Employment Statistics, Second Quarter 2022 report by Statistics Department revealed that 62.2% of jobs were in the Semi-Skilled category.
If the decline in tertiary education enrolment continues, it could potentially cast a shadow on the growth of the skilled workforce, consequently influencing the holistic progress of the nation and making Malaysia’s objective of becoming a high-income nation a distant dream.
To effectively address this issue, it is vital to understand the potential forces driving this change.
Without swift political intervention and effective remedies, Malaysia may witness a critical scarcity of skilled labour already in the medium term, hampering businesses in their search for necessary expertise, deterring foreign investors and keeping Malaysia's economy positioned at the lower echelons of the value chain.
Innovative education system reforms are essential to attract students towards tertiary education, fostering a skilled workforce that aligns with the demands of the nation's economy and ensures competitiveness on par with more developed countries.
However, there is also the need to adopt a realistic and practical approach to resolve issues that align harmoniously with evolving perspectives and the job landscape.
Recognising that not all individuals are suited for traditional academic tertiary education is crucial.
Instead of solely emphasising the pursuit of conventional higher education, it becomes imperative for stakeholders to explore diverse frameworks that refine the entire societal spectrum, nurturing the highest potential within everyone.
EMIR Research would like to urge policymakers to consider the following:
- Educational reform through aligning our education system with global trends set by successful national education systems (for details, refer to an earlier article by EMIR Research, "Urgent Need to Reform Malaysian Education System") and relevantising it for 4IR (and soon 5IR) reality.
- Affirmative policy in the education system must be based on criteria while allowing sufficient flexibility to not disadvantage exceptionally bright students. As empirical data shows, thus far, affirmative action, due to its poor implementation and execution, has been ineffective in closing the intended gaps (refer to "Ruthless colonisation Mat Kilau could not even imagine").
- Introduce progressive wages strictly linked to productivity, knowledge skills and abilities via the Input-Output-Outcome-Impact model.
- Adoption of the hybrid model in university – Malaysia could implement a similar University-industry partnerships model as in the UK, which involves students dividing their time between practical training in workplaces and academic learning at universities, which enables them to earn supplemental income while advancing their education ("Efficiency in university-industry collaboration: an analysis of UK higher education institutions").
- Provide support to underprivileged families of talented students by identifying them during their middle school years. By catching them earlier, we can help those who may have the potential but lack the motivation to pursue higher education due to challenging family circumstances. This is also one of the mechanisms to extend the safety net in a very targeted approach, notably by not just extending subsidies but employing or re-training and re-employing if necessary (see "4IR enabled farmers: Solving national food security" for low-hanging fruit solutions).
- Normalising TVET as an alternative institution to conventional education to produce industry-ready graduates – the government must promote TVET as an equivalent choice for students who prefer non-conventional tertiary education, refraining from portraying it as inferior to university academics. A successful Scandinavian model serves as a good example, where vocational education is highly regarded as equipping students with relevant skills for prosperous careers and seamlessly integrates into the education system in such a way that it holds parity with academic learning. For this purpose, an integrated model between TVET and universities allowing TVET students to study in the local Universities for up to one year can also be considered.
- Locate TVET institutions in strategic places, such as Ipoh, Kota Kinabalu, and Kuching, for effective collaboration between industries and universities.
- Encourage corporate participation to commit to TVET Madani – examples are the recent TM contribution of RM3.5mil for TVET Madani Success to enhance the students’ employability ("TM Commits RM3.5mil for TVET Madani Success") and the Food Panda scholarship program for its rider to pursue a diploma in MIU ("Second shot at higher learning for gig workers").
- Strategic collaboration with local and international TVET institutions – provision of government scholarships for local TVET students to study in TVET institutions abroad.
- Produce through TVET a high-skilled workforce well equipped for digital economy, renewable industry, smart cities, etc.
