OBJECTIVES

1. The objectives of this Best Business Practice Circular 4/2013 are:

To promote and support public-private partnership (PPP) in providing
technical education and vocational training (TEVT), as an alternative to
mainstream education especially for school drop-outs; and

To provide the corporate sector with guidance on responsible employment

of young workers who come from TEVT programmes, and respecting and
supporting childrens rights based on the Childrens Rights and Business
Principles (CRBP) that was launched in Malaysia on 11th September 2012.

BACKGROUND
The Definition of Technical Education and Vocational Training (TEVT)
2. According to the Malaysia Education Blueprint
2013-2025 Preliminary Report, TEVT is defined
as follows:

Vocational education prepares students for

EDUCATION FOR SUSTAINABLE DEVELOPMENT:

PROMOTING TECHNICAL
EDUCATION AND VOCATIONAL
TRAINING (TEVT)

career requiring expertise in a specific set of

techniques. These careers range from technical
or vocational skills like carpentry to positions in
engineering and other occupations. In contrast
to the technical stream which prepares
students for further education, the vocation
stream is more career oriented.1

3. The United Nations Educational, Scientific and

Cultural Organisation (UNESCO) defines

It is further understood to be:

(i) An integral part of general education;

(ii) A means of preparing for occupational fields
and for effective participation in the world of
work;

(iii) An aspect of lifelong learning and a preparation
for responsible citizenship;

(iv) An instrument for promoting environmentally
sound sustainable development; and

(v) A method of facilitating poverty alleviation.3

technical and vocational education to aspects

of educational process involving, in addition to
general education, the study of technologies
and related sciences, and the acquisition of
practical skills, attitudes, understanding and
knowledge relating to occupations in various
sectors of economic and social life.2

1. Ministry of Education, Malaysia Education Blueprint 2013-2025: Preliminary Report, http://www.moe.gov.my/userfiles/file/PPP/Preliminary-Blueprint-Eng.pdf, page 7-7
2. United Nations Educational, Scientific and Cultural Organisation, http://www.unesco.org/new/en/newdelhi/areas-of-action/education/technical-vocational-education-and-training tvet/
3. UNESCO and ILO (2002) Technical and Vocational Education for the Twenty-First Century: ILO and UNESCO Recommendations, UNESCO, Paris and ILO, Geneva, http://unesdoc.

unesco.org/images/0012/001260/126050e.pdf, page 7

BACKGROUND

BACKGROUND

Technical Education and Vocational Training as a Priority Agenda in Malaysia

4. The Government seeks collaboration with the
corporate sector in addressing socio-economic
challenges through education, as there are links
between education and economic advancement.
The rapid changes in technology, work and social
environment must be addressed to keep up with
local and global demands.
5. In order to meet global market demands, the
Ministry of Education (MOE) launched the
Preliminary Report of the Malaysia Education
Blueprint (the Blueprint) on the 12th September
2012 echoing the Governments plan to transform
the national education system to prepare children
in Malaysia to meet global standards.
6. Under the Tenth Malaysian Plan (10MP), the
Department of Skills Development (DSD) under
the Ministry of Human Resources, has been given
the responsibility to mainstream skills training
through TEVT.4 The DSD has taken proactive
measures by establishing the Skills Malaysia
Partnership (SMP) Unit to reinforce strategic
relationships and cooperate with the private
sector.
7. Under the National Economic Model (NEM), the
Strategic Reform Initiatives (SRI)5 is intended to
develop a quality and skilled workforce through
a targeted and holistic education system. It also
seeks to nurture skilled and inquisitive minds to
generate innovative workers. These efforts will
continue to drive productivity forward.6
8. Entry Point Projects (EPP) 5, under the National
Key Economic Areas (NKEA), lay down projects
that aim to scale up private skill training
provisions, which could increase the number of
skilled workers to 50% by 2020.7 These projects
include providing past Sijil Peperiksaan Malaysia
(SPM) students or school drop-outs with greater
opportunities to continue pursuing alternative
education in the form of TEVT.

9. The Government is undertaking many measures to

encourage the corporate sectors involvement in
the development of highly skilled workers. These
include providing and matching training grants to
assist employers of small and medium industries,
financial assistance in the form of loans for
training, joint fund financing with employers for
PhD studies in a related industry, expansion of
the National Dual Training System (NDTS)8 which
covers SPM school leavers and those unable to
complete full secondary or 11 years of education
and awarding Malaysian Skills Certificates and to
encourage various PPP. 9

Issue of School-Dropouts
Enrolment Rates by Level of Education

10. The recent 2013 Budget announced a financial

allocation of RM3.7 billion to train students in
technical and vocational fields. 10 The agencies
below have been appointed by the Government
to provide financial support in the form of loans,
sponsorships and contributions, to employees
from various industrial sectors: 11

(i) Ministry of Human Resources through the
Skill Development Fund;

(ii) Pembangunan Sumber Manusia Berhad
through the Human Resources Development
Fund (HRDF);

(iii) Ministry of Science, Technology and Innovation

through the Sistem Pembangunan Modal
Insan (E-HCD); and

(iv) Malaysian Statutory Bodies Association

through the Yayasan Amanah Latihan
Berkanun.

4. The DSDs main areas of focus are to improve the perception towards TEVT, nurturing effective and knowledgeable TEVT instructors, structuring the TEVT curriculum to fulfil the needs

of industry and creating an impeccable and dynamic TEVT delivery system.
5. SRIs are policy measures that will make Malaysia more competitive. 51 policy measures have been clustered into two groups to ensure execution. 14 of these measures were

housed in existing Natural Homes in various NKEAs and NKRAs, whilst the remaining 37 policy measures have now been clustered into 6 Strategic Reform Initiatives (SRIs) namely

(1) Competition, Standards & Liberalization, (2) Governments Role in Business, (3) Human Capital Development, (4) Public Service Delivery, (5) Narrowing Disparities (Bumiputera

SMEs) and (6) Public Finance.
6. Economic Planning Unit, Prime Minister Department, National Economic Model for Malaysia, Part 1: Strategic Direction Policy, 30 March 2010,http://www.neac.gov.my/publications.
php?subcategory=nem%20reports&ID=278&title=part%201%20-%20new%20economic%20model%20for%20malaysia%20-%20strategic%20policy%20directions%20-%20full%20

report,page 20
7. Economic Transformation Programme, National Key Economic Areas, Entry Point Project 5
8. The National Dual Training System (NDTS) will expand its current curricula to provide specialized training and coaches to cater to the needs of drop-outs and additional funds will

used to provide allowances for apprenticeships and to cover training costs.
9. Office of the Prime Minister of Malaysia, Tenth Malaysia Plan 2011-2015, Speech by the Prime Minister in the Dewan Rakyat, 10 June 2010, http://www.pmo.gov.
my/?menu=speech&news_id=297&page=1676&speech_cat=2
10. Ministry of Finance Malaysia, The 2013 Budget, http://www.treasury.gov.my/images/pdf/budget/bs13.pdf,paragraph 65
11. Ibid.

THE BUSINESS CASE: GAPS IN

EDUCATION

EDUCATION FOR SUSTAINABLE DEVELOPMENT: PROMOTING TECHNICAL EDUCATION AND VOCATIONAL TRAINING

FIGURE 1
*Data above obtained from Malaysia Educational Statistics 2011, Ministry of Education Malaysia
**Data based on live birth and enrolment in educational institutions under the Ministry of Education Malaysia

11. According to the data compiled in the Malaysian

Educational Statistics 2011, the enrolment rate
for primary level reached above and beyond 90%
from 2007 to 2011 (Figure 1). For the lower and
upper secondary levels, the figures were below
90% and below 80% respectively. The rates
continue to decline further at the post-secondary
and tertiary level to below 20%, from 2008 to
2011.

12. Low academic achievement, low interest and

disciplinary problems 12 may cause students to
drop-out of school. According to a 2004 MOE
and UNESCO study, approximately 85% of school
drop-outs from less developed states in Malaysia
come from poor families. The aforementioned
reasons coupled with poverty can cause students
from poor families to be at greater risk of dropping
out and eventually consumed into the workforce.
More often than not, they become young workers
and do not have an opportunity to benefit from
the education system.13

12. Economic Planning Unit, Prime Ministers Department Malaysia and United Nations Country Team Malaysia, Malaysia: The Millennium Development Goals at 2012, April 2011, http://

www.undp.org.my/files/editor_files/files/Malaysia%20MDGs%20report%20clean%200419.pdf, page 37
13. Ibid.

THE BUSINESS CASE: GAPS IN EDUCATION

THE BUSINESS CASE: GAPS IN EDUCATION

Enrolment Rates by Gender and Level of Education

18. Specific to Malaysia, a study conducted by

Goolamally & Ahmad (2010) found that the underperformance of boys is a result of the differences
in learning styles between genders and the
supposition that boys would prefer a more handson approach when it comes to education.20

20. The UNGEI research recommended an urgent

need to initiate a holistic discussion on education
that also includes the provision of vocational
education to a wider scale in East Asia and the
Pacific.22

19. In addition, factors such as transport difficulties

in remote rural areas, migration due to economic
factors, the need to help on the family farm and to
take care of siblings, employment, early marriage
and lack of family support, are prominent in
Sabah and Sarawak, as identified in a report by
the Educational Policy Planning and Research
Division, MOE.21

FIGURE 2
*Data above obtained from Malaysia Educational Statistics 2011, Ministry of Education Malaysia
**Data based on enrolment in educational institutions under the Ministry of Education Malaysia

13. An Education for All Mid-Decade Assessment

(EFA-MDA) analysis revealed that boys enrolment
rates are significantly lower than those of girls in
Malaysia.14 This is reflected in Figure 2 based on
the Malaysia Educational Statistics 2011, which
indicates almost equal enrolment rates for both
male and female students in the primary and lower
secondary levels. At the upper secondary and
post-secondary levels, male student enrolment
rates are recorded at about half of the female
enrolment rates.
14. The Blueprint acknowledges the gender gap in
education as significant and on the rise.15 Boys
are more likely to drop-out of the mainstream
education system and female students make up
about 70% of the latest incoming cohorts in some
universities.16

15. An underlying gender perception that boys are

more independent, believed to be less interested
in learning, and have the potential to earn money
while working can also be contributory factors to
boys dropping out of the education system.17
16. Recent research from the United Nations Girls
Education Initiative (UNGEI) found that wide
education structures such as the legislated years
of compulsory education, whether education is
provided for free and the process of academic
streaming can become unintended push factors
that cause boys to leave school.18
17. The same UNGEI research attributes the gender
divide to the opinion that boys consider attending
mainstream schooling is only for girls. Many boys
expressed the opinion that being studious and
hardworking are feminine attributes.19

14. UNICEF, Education for All Mid-Decade Assessment, Gender Equality in Education, East Asia and Pacific, 2009,http://www.unicef.org/eapro/Gender_progressNote_web.pdf, page 26
15. Ministry of Education, Malaysia Education Blueprint 2013-2025: Preliminary Report, http://www.moe.gov.my/userfiles/file/PPP/Preliminary-Blueprint-Eng.pdf, page 3-19
16. Ibid.
17. United Nations Girls Education Initiative, Why are boys under-perfoming in Education?: Gender Analysis of Four Asia-Pacific Countries, http://www.ungei.org/files/report_why_are_

boys_underperforming_FINAL.pdf, page 2
18. Ibid.
19. Id., page 28

EDUCATION FOR SUSTAINABLE DEVELOPMENT: PROMOTING TECHNICAL EDUCATION AND VOCATIONAL TRAINING

THE NEED FOR TEvT

21. Currently, 77% of the labor force in Malaysia
possesses 11 years of education and only 28%
of the jobs are in the higher skill bracket. The
Economic Planning Unit (EPU) predicts that by
2020 the labor force in the higher skill bracket
jobs will only increase by 4%. However, the
Governments aim is to reach 33% by 2015 and
50% by 2020.23

23. It is predicted that demands for vocational skills

will continue to rise. This is due to the expected
3.3 million jobs that will be created under the
NKEA by 2020 where 46% of these jobs will
require vocational certificates or diplomas.25 In
order to fulfill this demand, 50,000 additional
places in vocational education need to be created
each year.

22. The number of students enrolled in vocational

secondary schools has fallen from 62,200
in 2008 to 51,500 in 2011.24 In 2008, the
Ministry of Human Resources reported a labor
shortage of over 700,000 skilled workers in
the manufacturing, agriculture and construction
industries.

20. Id., page 29

21. Economic Planning Unit, Prime Ministers Department Malaysia and United Nations Country Team Malaysia, Malaysia: The Millennium Development Goals at 2012, April 2011, http://

www.undp.org.my/files/editor_files/files/Malaysia%20MDGs%20report%20clean%200419.pdf, page 37
22. United Nations Girls Education Initiative, Why are boys under-perfoming in Education?: Gender Analysis of Four Asia-Pacific Countries, http://www.ungei.org/files/report_why_are_

boys_underperforming_FINAL.pdf, page 33
23. Organisation for Economic Co-operation and Development (OECD), Local Economic and Employment Development (LEED) Working papers 2012/2, Skills Development Pathways in
Asia, page 28
24. Ministry of Education, Malaysia Education Blueprint 2013-2025: Preliminary Report, http://www.moe.gov.my/userfiles/file/PPP/Preliminary-Blueprint-Eng.pdf, page 7-7
25. Ibid.

THE BUSINESS CASE: GAPS IN EDUCATION

IMPLEMENTATION GUIDELINES
24. By promoting the involvement of the corporate
sector in TEVT, inevitably young people undergoing
or who have undergone TEVT will eventually
become young workers under the employment of
the corporate sector. Hence, it is important for
the corporate sector, as an employer, to take into
consideration and observe the specific needs and
treatment of these young workers.

25. The Convention on the Rights of the Child (CRC),

acceded by Malaysia in 1995, upholds every
childs right to education. Article 28 of the CRC
states that a State Party shall(b) encourage
the development of different forms of secondary
education, including general and vocational
education, make them available and accessible
to every child and(e) take measures to
encourage regular attendance at schools and the
reduction of drop-out rates. Article 1 of the
CRC defines the child as anyone below the age of
18.

Guiding Principles for the Employment of Young Workers

Principle 3 of the Childrens Rights and Business
Principles (CRBP)26 states,

All business should provide decent work for

young workers, parents and caregivers.

The corporate responsibility to respect includes:

a. Providing decent work for young workers

Respect the rights of children above the
minimum working age, and promote social
dialogue and rights at work, provision of safe
working conditions, protection from abuse
and exploitation, and access to genderappropriate water, sanitation and hygiene
facilities.

b. Being responsive to the vulnerability of

young workers above the minimum age for
work
i. All business should adopt and endorse, at
the highest level, their policy commitment
regarding the rights of children and of
young workers, including their right to
be protected from violence and abuse.
The policy should protect children above
the minimum age for regular work from
hazardous work: it should consider, among
other things, limits to hours of work;
restrictions on work at dangerous heights,
as well as work with dangerous machinery,
equipment and tools; the transport of
heavy loads; exposure to hazardous
substances or processes, and difficult
conditions such as work at night or work
where the young worker is unreasonably
confined to the premises of the employer.
Responsibility for implementing this

26. UNICEF, UN Global Compact, Save the Children, Childrens Rights and Business Principles, http://www.unicef.org/malaysia/Childrens_Rights_and_Business_Principles.pdf, page 20

and 21

EDUCATION FOR SUSTAINABLE DEVELOPMENT: PROMOTING TECHNICAL EDUCATION AND VOCATIONAL TRAINING

policy must be mainstreamed and

shared by management, although the
business may choose to allocate specific
managerial responsibility for supervising
its implementation.
ii. Business policies on harassment should
pay attention to the vulnerability of
young workers. These policies should
be enforced consistently and employees
and others on company premises should
receive training on them. Grievance
mechanisms should be effective and also
accessible to young workers.
iii. Business may require management and
encourage trade unions and their elected
representatives to pay special attention
to protecting the rights of young workers.
Trade unions may decide to elect young
worker
representatives/stewards
to
monitor working conditions of youth; this
is a matter for the autonomous decision
of the trade union concerned.

The corporate commitment to support includes:

c. Providing decent work for young workers

Promote decent work opportunities for
young workers, including age-appropriate
social protection and health information
and services. Quality education and relevant
vocational training and livelihood development
programmes are of particular importance, as
is the opportunity to earn a living.

d.

Providing decent working conditions that

also support workers, both women and men,
in their roles as parents or caregivers
Beyond legal compliance, pay particular
attention to working conditions such as the
payment of a living wage, length and flexibility
of working hours, provisions for pregnant and
breastfeeding women, need for parental leave,
supporting migrant and seasonal workers with
distance parenting, and facilitating access
to good quality child care, health care and
education for dependents.

Corporate Sector in Technical Education and Vocational Training

26. Additionally, cultural or traditional barriers need

to be taken into consideration, particularly
when it involves vulnerable groups such as
girls, indigenous people and/or immigrants by
determining the modes of training delivery.27

28. In regards to the quality of TEVT, the corporate

sector should ensure that training be relevant
to the local labor market by ensuring that the
trainees will have access to employment upon
completion of the course.

27. The corporate sector is ideally placed to design

content for TEVT that reflects the labor market
demands, and can evaluate and provide feedback
on overall performance in order to support and
continuously improve the system.

27. United Nations Girls Education Initiative, Why are boys under-perfoming in Education?: Gender Analysis of Four Asia-Pacific Countries,http://www.ungei.org/files/report_why_are_

boys_underperforming_FINAL.pdf, page 2

IMPLEMENTATION GUIDELINES

IMPLEMENTATION BENEFITS
In supporting and embarking on the PPP in providing TEVT for school drop-outs, listed below are some
implementation benefits for both the corporate sectors and target industries.
29. On-the-job training can help produce skills and
competencies that may enhance a companys
profitability and operability. Businesses are
well placed as they know and understand the
requirements and needs of its business industry.

30. Businesses have the essential skills to provide

TEVT that is in-line and palatable with a companys
operations. This initiative builds a pool of talent
that is ready with the required skills to become
employees of a company.

31. The Government wants to encourage and intensify

the involvement of the corporate sector through
PPP to establish accredited in-house training
programmes that extend beyond its employees.
The delivery of direct training from companies in
specific industries will ensure that the training
content best fulfills the needs of the industry.

32. This is an opportunity for companies to attain

formal certification for their CSR initiatives either
under the Malaysian Skills Certification system
or by an international certification body. This may
have the potential of building a companys brand
as the business to-go-to to learn a skill. In doing
so, businesses are also building the skills of the
nation, which is imperative to economic priorities.

Target Industries
33. The various economic industries in Malaysia are
encouraged to implement TEVT. In Figure 3 below,
taken from the Blueprint, are specific listings by
target industries, showing opportunities where
TEVT initiatives may be set-up.

35. The corporate sector will be able to provide the

community with young people who are skilled
and employable and indirectly assist families,
especially those from poor financial backgrounds.

34. The corporate sector will assist to fill the gaps in

education and reduce the rate of school drop-outs
by supplying an alternative pathway to mainstream
education, thus providing them with skills that are
beneficial to their individual development that
allow them to reach their full potential.

FOR THE PRIVATE SECTOR

a. Provision of TEVT as a Corporate Social
Responsibility (CSR) initiative will build
on the national commitment towards
strengthening PPP;
b. Creation of a pool of technical talent in
various business industries to support the
national, regional and global market needs;
c. Support the implementation of the national
education priorities;
d. Generate depth and breadth of human
capital development in the country to
produce a competitive labor market
workforce;

10

e. Establishing an accredited in-house training

programme may attract new incoming and
committed employees; and
f. The MOE intends to invest additional
resources in the Vocational Transformation
Plan to ensure it achieves its targets. The
MOE intends to also enhance collaboration
with industry partners to provide on-the-job
training for students as well as encourage
potential partners to participate by providing
incentives. The incentives include tax
breaks and priority access to graduates for
recruiting. Companies can form partnerships
with the MOE via Memorandums of
Understanding (MOU) signed by both
parties. The target is to have 40% of public
vocational colleges (KVs) sign MOUs with top
feeder industries by 2015.

EDUCATION FOR SUSTAINABLE DEVELOPMENT: PROMOTING TECHNICAL EDUCATION AND VOCATIONAL TRAINING

FIGURE 3: Potential target industries for collaboration with vocational schools

IMPLEMENTATION BENEFITS

11

IMPLEMENTATION BENEFITS

Tax related incentives

12

EDUCATION FOR SUSTAINABLE DEVELOPMENT

DEVELOPMENT::PROMOTING
PROMOTINGTECHNICAL
TECHNICALEDUCATION
EDUCATIONAND
ANDVOCATIONAL
VOCATIONALTRAINING
TRAINING

Tax related incentives

IMPLEMENTATION BENEFITS

13

FURTHER INFORMATION
For further information on programs related to TEVT that have already been carried out in
Malaysia, please visit the following websites:
Ministry of Human Resource
www.dsd.gov.my
www.skillsmalaysia.gov.my
Pembangunan Sumber Manusia Berhad
www.hrdf.com.my
Ministry of Science, Technology and Innovation
www.mosti.gov.my

REGISTRAR OF COMPANIES/BUSINESSES
COMPANIES COMMISSION OF MALAYSIA
5 March 2013

note:
The BPPC does not create any legal obligation for companies and businesses to comply
and merely outlines the best practices to be adopted at the option of such companies/
businesses. SSM and UNICEF encourage the adoption of this BPPC towards ensuring
business sustainability.

14

EDUCATION FOR SUSTAINABLE DEVELOPMENT: PROMOTING TECHNICAL EDUCATION AND VOCATIONAL TRAINING