ADI Employment: Where Factories Become Classrooms

In a labour market increasingly shaped by automation, digitalisation and artificial intelligence (AI), academic qualifications alone are no longer enough to ensure workers are equipped with the skills industries require.

Malaysia’s labour market is grappling with a two-pronged challenge. On one hand, many Sijil Pelajaran Malaysia (SPM) school leavers and university graduates are turning to gig and flexible work to earn a living. On the other hand, employers continue to struggle to find local workers with the technical skills needed to meet operational demands.

This disconnect has fuelled a growing skills mismatch and underemployment, where the capabilities and qualifications of the local workforce are not fully utilised by industry.

Recognising the challenge, Malaysia’s talent development strategy has shifted from a classroom-centred approach to workplace-based learning that equips individuals with the necessary skills and experience.

To support this transformation, Academy in Industry (Akademi Dalam Industri or ADI), which began as the Academy in Factory initiative in 2021 before being rebranded in 2023, was introduced as an industry-led talent development platform.

Under the ADI Employment programme spearheaded by the Malaysia Productivity Corporation (MPC), participants undergo a ‘place and train’ approach, allowing them to work while upgrading their skills, as well as gaining hands-on industry experience, building their competencies and earning government-recognised skills certification.

SECOND CHANCE AT A CAREER

Muhammad Shairiel Ikmal Abdul Hadi, 23, from Telok Panglima Garang, Selangor, entered the ADI Employment programme in 2023 armed only with his SPM qualification.

With no skills whatsoever, he began working at metal packaging company Kian Joo Can Factory Bhd in Batu Caves. He also attended classes at the Kuala Lumpur Industrial Training Institute (ILP) before applying his newly-acquired skills on the actual machines, technology and operating systems in the factory.

A recent exclusive Bernama interview featuring ADI Pekerjaan's talent from Kian Joo factory, supported by the Malaysia Productivity Corporation (MPC).

Muhammad Shairiel said balancing the responsibilities of a full-time job with structured training was the biggest challenge during the early stages.

“It was difficult at first, but over time I adapted and became more confident in carrying out all the tasks assigned to me,” he told Bernama.

Under the guidance of mentors and factory supervisors, he learned not only how to operate the machinery and manage production processes but also gained an understanding of quality control procedures and the discipline required in a real industrial environment. Even preparing daily reports, which he initially found daunting, eventually became second nature.

His efforts paid off when he obtained the Malaysian Skills Certificate (SKM) Level 3 and secured a position as a printing technician with a higher salary. More importantly, he said, the programme gave him confidence to perform tasks he had never imagined he would be capable of undertaking.

Serjeah Yumpah, 25, from Penampang, Sabah, also used the ADI programme for career advancement. She spent about two years as an operator at an electronics factory before joining BJC Foods (Malaysia) Sdn Bhd in Shah Alam in 2024. Although she already had manufacturing experience, she believed there was still room to sharpen her skills and pursue better career prospects.

One of the ADI Pekerjaan's talent, Serjeah Yumpah.

When she enrolled in the ADI programme, she was a production operator, receiving a salary and special allowances while undergoing approximately 18 months of structured training.

The programme exposed her to the entire food manufacturing value chain, from raw material management and production processes to quality control and compliance with food safety standards, including Good Manufacturing Practice (GMP) and Hazard Analysis and Critical Control Points (HACCP).

Beyond technical knowledge, the experience strengthened her discipline, time management, communication skills and problem-solving abilities in the workplace. She is confident that the SKM Level 3 certification that she will obtain in May 2027 will improve her prospects of becoming an operations supervisor.

CLOSING THE SKILLS GAP

MPC deputy director-general Dr Mohamad Norjayadi Tamam said the core philosophy of ADI Employment is to position industry not merely as a workplace, but as an ecosystem for developing a workforce that is responsive to the evolving needs of the economy, and productivity and technological change.

To achieve this, ADI brings together industry, training institutions and the government to ensure the skills being developed are aligned with market demand. Training programmes are designed around the actual needs of participating companies through industry-designed and industry-customised approaches.

Dr Mohamad Norjayadi Tamam. Pix credit MPC.

“Unlike conventional education, which separates classroom learning from workplace experience, ADI places participants directly in industry, where about 80 percent of learning takes place on the job, while the remaining 20 percent consists of theoretical instruction that supports workplace competency development,” he said in a written response to Bernama.

He said MPC regularly engages with industry players and strategic partners to keep training programmes relevant by strengthening curricula, upskilling methods and certification pathways. At the same time, learning within an actual industrial environment enables participants to adopt industry technologies and systems, and enhance their productivity levels.

“This is consistent with the findings of the Malaysia Economic Monitor 2026, which stresses that employment should be viewed as part of the nation’s productivity agenda. The report also shows that higher levels of formal education alone are no longer sufficient unless accompanied by skills development that genuinely meets industry needs,” he said.

EMPOWERING WORKERS

Mohamad Norjayadi said workplace-based training enables companies to develop more productive employees, shorten the adjustment period for new hires and reduce retraining costs. At the same time, it improves talent retention and allows businesses to build a workforce tailored to their operational processes and technological requirements.

“This approach also supports the national agenda of raising productivity by 3.6 percent annually, expanding high-value employment and increasing the proportion of skilled workers to 35 percent by 2030 to strengthen the country’s competitiveness.

To address the issues of skills mismatch and underemployment, the national talent development approach is shifting from purely classroom-based learning to experiences within actual work environments. Image credit: MPC.

“Most importantly, producing a larger pool of competent local workers is expected to gradually reduce industry’s dependence on low-skilled foreign labour," he added.

The effectiveness of the model is reflected in growing industry participation. As of May 2026, more than 2,600 companies nationwide had joined the ADI Employment programme, involving about 52,000 participants, with more than 12,600 successfully placed across strategic sectors including automotive, electrical and electronics, logistics, manufacturing, technology and modern services.

The programme also recorded a positive impact on the career development of the participants, with 86.3 percent of them remaining employed in their respective industries in 2025, while about 61 percent of existing participants enjoyed significant salary increases after completing the programme.

Some participants who began as general workers have progressed to become supervisors, skilled technicians and even in-house trainers within their companies.

“These achievements clearly demonstrate that workplace-based competency development not only enhances employability and productivity, but also creates pathways for social mobility, career advancement and higher incomes,” said Mohamad Norjayadi.

FACTORY AS INDUSTRY CAMPUS

While ADI Employment was introduced at the policy level to bridge the skills gap between education and industry, its implementation at Kian Joo Can Factory demonstrates how the concept is translated into day-to-day business operations.

According to its Group Head of Human Resources Don Lin, talent development through technical and vocational education and training (TVET) has long been embedded in the company’s culture. So when ADI was introduced, the company swiftly adopted the programme in 2023 as another platform to strengthen workforce development based on actual industry needs.

ADI's key strength lies in its ability to create a win-win situation for both industry and talent. Companies can develop their workforce in line with their specific operational needs, technologies, and standards, while talent gains real-world work experience. Pix credit MPC Facebook page.

To ensure training remains relevant amid rapid technological advancements, Lin said the company integrates the National Occupational Skills Standards (NOSS) curriculum, developed by the Department of Skills Development under the Ministry of Human Resources, with its own in-house training modules. The training programme spans 18 months, combining structured learning with workplace experience.

Depending on the competency level and NOSS requirements, the company offers SKM programmes at Levels 2, 3 and 4.

Beyond earning an SKM qualification, participants are immersed in the company’s operating procedures, workplace culture and industrial technologies under the guidance of 40 trained coaches and mentors, all of whom have undergone MPC training to ensure they deliver the programme according to its prescribed standards.

“Since the programme was introduced, nearly 100 participants have joined our company, with a talent retention rate of about 70 percent,” Lin said.

He also noted that while automation and AI are becoming increasingly prevalent in the manufacturing sector, skilled workers remain indispensable for operating advanced technologies and maintaining quality standards.

“Technology improves efficiency, but manual inspection is still essential to ensure product quality. The more advanced the technology, the greater the need for skilled workers to manage it,” he said.

A wide range of training programs is offered at Kain Joo, covering various related fields such as flexography and lithography printing, industrial maintenance, mechanical engineering, and mechatronics.

Participants who demonstrate strong performance and commitment may receive salary reviews and promotions within about two years after completing the programme. Some are even selected to become assistant trainers, helping mentor future ADI participants.

The effectiveness of the approach was evident when Kian Joo Can Factory trainees in the packaging printing discipline won gold and silver medals at the Department of Skills Development’s Malaysia Youth WorldSkills 2024 national competition, reflecting the ability of workplace-based training to produce highly skilled and competitive talent.

BUILDING STRONGER WORKFORCE

While Kian Joo Can Factory illustrates how ADI accelerates the development of skilled workers, snack manufacturer BJC Foods demonstrates how companies can build their own training ecosystem to cultivate talent tailored to their operational requirements.

Its managing director Phillip Leong Wai Kok said the company joined the ADI programme in 2025 after facing persistent challenges in recruiting local workers who were not only willing to work but also possessed the potential to develop long-term careers with the company.

Unlike many companies that rely on external training institutions, BJC chose to establish its own in-house academy. The company trained 10 internal instructors, developed its own training modules and used its standard operating procedures as the foundation of the curriculum, ensuring every competency taught directly reflects the company’s operational requirements.

Leong said the company’s food processing module is among the earliest industry-developed modules under the ADI Employment programme. Although it is based on the NOSS framework, the curriculum has been extensively customised, with each competency unit aligned to the company’s actual work processes before being compiled into an official training manual for instructors and ADI participants.

Participants undergo approximately 18 months of training for SKM Level 3 while simultaneously completing the competencies required for Level 2.

“In the past, employees may have simply followed instructions. After completing ADI, they understand the entire production process and become true specialists. That also enables them to become ambassadors for the company because they genuinely understand our products and operations,” he said.

The programme has delivered encouraging results, with eight of the nine participants in the first intake remaining with the company. Their success has inspired more existing employees to apply to participate in the ADI programme.

Encouraged by the positive response, Leong said the company is prepared to increase future intakes.

When it comes to selecting participants, he stressed that academic qualifications are not the company’s primary consideration. Instead, greater emphasis is placed on work aptitude, personal character and commitment.

“To me, ADI offers a second chance, especially for SPM school leavers who are unable to pursue further studies. Don’t give up because this programme gives you the opportunity to work while continuing your education,” he said.