MALAYSIA ASEAN Siva Somasundram Senior Trade Manager and ASEAN - PowerPoint PPT Presentation

MALAYSIA ASEAN Siva Somasundram Senior Trade Manager and ASEAN Lead Education & Training British High Commission, Malaysia +603-2170 2223 Siva.Sundram@fco.gov.uk

Malaysia’s Strategic Location 1.38bn 1.33bn Heart of Asia 32m ASEAN 633m UNCLASSIFIED 25m

ASEAN • 10 countries • Priority market for the UK for education & training • Yearly achieving 3 times (more than £120 million) the DIT Export Win target given to the DIT Education Team in the ASEAN region • Economy – 3 rd largest in Asia and 7 th largest in the World. Expected to be 4 th largest by 2050. • GDP is around 5%

ASEAN • 633 million people (3 rd largest in the world after China & India). More than 65% (411 million) - under 35. • 3 rd largest labour force in the world. 40% work in agriculture. There are large pools of semi-skilled and unskilled workers due to population growth and migration from rural to urban areas • Evidence of skills mismatch. Region’s companies report significant gaps in both technical and soft skills and are finding their growth constrained by these missing skills and labour shortages • Migration & mobility represent both challenges and opportunities • Lack of entrepreneurial development linked to productive activities • The demand for TVET is considered significant and likely to grow substantially in the future

ASEAN • Governments in ASEAN region spend over £60 billion in education & training per annum, with another £20 billion spent by private sector organisations • Market research has valued the TVET market from 2016-20 in Malaysia, Philippines, Thailand, Vietnam & Indonesia to be worth US$113.6 million and accessible market for the UK is 16.7% (US$25.5mil) • Total potential market value for ELT in 8 countries, apart from Singapore & Brunei, is £800 million by 2020. The main markets are: Thailand, Malaysia, Indonesia & Vietnam • Focus is on 18-24 year old market, where potential significant ELT activity is present across the region • Provide training in basic English, as well as functional English for both business and occupations

ASEAN • Interpersonal communication in English is a critical void in one of the skills of the region’s workforce. • English language proficiency also present challenges to employers, many of whom report difficulty finding suitable candidates. • English is the chosen language of the ASEAN region and the demand for English training is growing, as workers/companies in the region know it is the language of international business.

ASEAN • English as a medium of instruction is growing, especially at higher education levels • Growing urban/rural divide – this is creating economic divide and also disparate educational levels, including English • National governments are looking at frameworks for ELT work and have allocated some expenditure for this • Malaysia has its English Language Roadmap (2015-25), which is a comprehensive document and developments for a similar in Laos & Thailand is being aided by the British Council.

ASEAN • ASEAN Qualifications Framework is already in place • 56% of all salaried employment in Cambodia, Indonesia, Philippines, Thailand & Vietnam is at high risk of displacement due to technology. Moving these people into better jobs is an economic priority for the region. • World’s fastest growing region for Internet Access – 125,000 new users expected to come online each day through to 2020.

Greater KL / Klang Valley Links to Corridors of Opportunity NCER : NORTHERN CORRIDOR ECONOMIC REGION ECER : EAST COAST ECONOMIC REGION LABUAN FSA SDC : SABAH DEVELOPMENT CORRIDOR RECODA: REGIONAL CORRIDOR OF Greater DEVELOPMENT AUTHORITY KL/KV IRDA : ISKANDAR REGION Source:

Malaysia – Key Facts 2013 • 60 years old • Population: 32m (107 males per 100 females) :Kuala Lumpur – 8 million :24% are aged 0-14 & 67% are aged 15-64 (55% are under 30) • Labour Force: 14.7m • Growth rate: 4.5% • GDP: 5.8% - growing faster than economists forecast in the 2 nd quarter. Was worth US$296.4billion in 2016 • Inflation: 3% • Unemployment: 3.4% (500,000) 11 th MP – to achieve High-Income Economy by 2020, GNI • per capita is £8,470 (need to archive £11,520 by 2020) Mobile internet penetration rate: 65% - 3 rd highest in SEA • • Malaysia’s Foreign Direct Investment (FDI) up 64% to £10 billion confidence shown by China, US & Netherlands The World Bank’s Ease of Doing Business: 23 rd by World • Bank

Malaysian – TVET & CPD • Malaysian Govt has declared 2017 as TVET Year • 7 ministries involved in TVET • 60% of 1.5 million new jobs by 2020 is expected to be TVET-related skills, including English proficiency for those in workplace – Workers, Supervisors, Managers & Trainers • Out of the 14.8 million workforce, 31% (4.6 million) are considered skilled. • National agenda – increasing the number of skilled workers in the country from 28% currently to 53% by 2020 • Transforming TVET to meet industry demand. The supply of TVET graduates, both quality and quantity, is not still fully aligned with industry demand, and TVET is still perceived by students to be a less attractive pathway

Malaysian – TVET & CPD • In the last budget, RM4.8 billion (£857 million) was allocated to 545 TVET institutions • RM30 million (£5.36 million) was for Youth Entrepreneurship • 1,000 training providers • 34 Polytechnics – 89,503 Students & 7,916 academicians • 94 Community Colleges – 21, 468 Students & 2,836 academicians • 4 Malaysian Technical University Network (TVET)

Malaysian – TVET & CPD HRDF (20 years old) Annual budget is around RM800 million (£145 million) Cover nearly 30 industries, with over 17,000 businesses contributing to the levy (Services, Manufacturing, Mining, Quarring) Levy paid need to be used within 5 years and if not HRDF will fortified 30% of the money is for graduate employment training and 70% for staff training of contributing industries

Malaysian – TVET & CPD HRDF Focus is on Outcome & Value 506,330 training was done last year 2,800 training providers are registered with HRDF Around RM300 million (£54 million) of HRDF’s RM1.2 billion budget (£214 million) in 2016 was spent on UK services related to human resource development, such as certification/qualifications and ‘Work -based Training Programmes’ / apprenticeship.

Malaysian – TVET & CPD Quality & Compatibility is the main issue with TVET workers Certification/Qualification - Dual Certification for international recognition and workers mobility within ASEAN region Certification is from the Department for Skills Development, MoHR. Other ministries also provide their own certification. Unlike MQA for HE Apprenticeship – one of the main focus English Language Training (ELT) opportunities in TVET sectors such as: rail, construction, cyber & telecoms, automotive, aviation, oil & gas, hospitality and shared services. English can be added in the skills training for these sectors. Joint development of training programmes . Training that can be delivered in workplace or blended learning programmes.

Malaysian – TVET & CPD Pushing for Online Learning and HRDF claimable Graduate employment training (200,000 unemployed & 70,000 graduates not in proper jobs) RM30 million was allocated last year for Youth Entrepreneurship. There is Youth Development Skills Institute by the Ministry of Youth & Sports Federation of Malaysian Training Providers & TVET Associations (FMTA) Federation of Malaysian Manufacturers (FMM) – The President suggested members to take up English training, as it is the global language for business. FMM Institute attend to some of the training needs of members, but as for expertise in English training for specific sectors, they are still looking. Training providers to FMM members can claim payment for their service from HRDF, as FMM members pay levy.

English Language The Malaysian Education Blueprint highlights the need to ensure every child is proficient in at least 2 languages – Bahasa Malaysia (national language) & English. Malaysia has English Language Education Roadmap (2013-25) for pre-schools, schools and universities, which was prepared by English Language Standards and Quality Council. It did utilize the findings of the Cambridge English baseline study on the teaching of English language in Malaysian schools The Common European Framework of Reference was adopted for course of action in improving the English language proficiency of Malaysian students & teachers in terms of curriculum, teaching, learning and assessment. Universities are now expected to ensure that their graduates are more employable by being linguistically competent in English language. However, there is no English Language TVET Roadmap. Could suggest for this to the Ministry of Human Resources through HRDF.