Budget 2023: Gov't hopes to emulate PSDC model for TVET empowerment - Anwar

KUALA LUMPUR, Feb 24 (Bernama) -- The government hopes to emulate the Penang Skills Development Centre (PSDC) model for the empowerment of public and private cooperation in the implementation of the Technical and Vocational Education and Training (TVET) programme, said Prime Minister Datuk Seri Anwar Ibrahim.

Anwar, who is also Finance Minister, said through this model it will be seen to overcome the country's situation of underemployment where salaries do not commensurate with qualifications.

"Data shows 90 per cent of TVET graduates get jobs but earn low wages of only around RM2,000 a month. However, the government spends up to RM6.7 billion on TVET.

"This is unacceptable and reforms need to be implemented so that 90 per cent of the TVET graduates receive salaries of over RM2,000," he said when presenting Budget 2023 in the Dewan Rakyat today.

He said the model is a policy that should be emulated when the Penang government's collaboration with electrical and electronics industry players succeeded in providing jobs for TVET graduates with decent wages.

"The government hopes that this model will be a pilot involving federal TVET institutions with a target of 50 companies, especially among government-linked companies (GLCs)," said Anwar.

He said the leading companies involved will partially or fully take over TVET operations such as community colleges, the Industrial Training Institute (ILP) and the National Youth Skills Institute (IKBN) to provide training programmes that meet the company's needs.

"For example, Petronas leads the oil and gas cluster in Pengerang, Kimanis, Batu Rakit and Miri. DRB Hicom leads the automatic cluster in Pekan, while Sunway leads the hospitality cluster and MRCB the construction cluster," he said.

Anwar said the reforms will be able to use government resources more effectively in producing TVET graduates who meet the needs of the industry and that public-private collaboration through this new approach would continue to be explored for other areas or government services.

Apart from this, he said to strengthen cooperation related to TVET, the National Dual Training System (SLDN) will also be strengthened with an allocation of RM50 million to benefit more than 8,000 trainees.

"The 'Academy in Factory' programme would be implemented to provide opportunities for more than 50,000 trainees to carry out training while working in factories," he added.

-- BERNAMA