MALAYSIA ASEAN Siva Somasundram - UK-ASEAN Business Council

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 – 3rd largest in Asia and 7th largest in the World.
Expected to be 4th largest by 2050.

• GDP is around 5%

ASEAN
• 633 million people (3rd largest in the world after China & India). More than 65% (411
million) - under 35.

• 3rd 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
                              RECODA: REGIONAL          CORRIDOR
Greater                       CORRIDOR OF
KL/KV                         DEVELOPMENT AUTHORITY

                       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
    2nd quarter. Was worth US$296.4billion in 2016
•   Inflation: 3%
•   Unemployment: 3.4% (500,000)
•   11th 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% - 3rd 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: 23rd 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.

Higher Education

RM13.4 billion (£2.4 billion) was allocated in 2016

In Malaysian Annual Budget , around 23% is for education and training.

Under 11th Malaysia Plan, £10 billion a year is allocated for education and training.

There are currently 19,666 student in the UK – 2nd largest foreign students after
China. An additional 78,500 are registered for a UK qualification in Malaysia.

Education business for the UK from Malaysia is over £950 million a year

100,000 Malaysian students are studying overseas

Most number of British university branch campuses in the world (Nottingham,
Newcastle, Reading, Southampton & Heriot-Watt). There are another 5 more
foreign branch campuses, which certainly helps with Malaysia’s ambition to become
an Education Hub for the ASEAN region.

20 Public Universities, 53 Private Universities, 34 Private University Colleges, 10
Foreign Branch Campuses and 398 Colleges

UK-MALAYSIA Investment

• Significant two-way investment

• Major British investors include: BP, Shell; TESCO, Jardines, HSBC,
Standard Chartered, Dyson, BAE Systems, Rolls-Royce, Pinewood
Studios, Debenhams, Clarks, British Telecoms

• Also significant Malaysian investment in UK: Lotus Engineering,
Laura Ashley, Stanley Casinos, Corus Hotels, Wessex Water,
Battersea Power Station site development

• In 2012, Malaysia ranked 2nd behind the US in terms of commercial
& residential investment in London.

Why Malaysia
•   Love for British Brands
•   Bi-lateral trade agreement
•   Robust, generally open, high growth
    economy
•   Shared History – Foundations and
    Systems based on UK
•   Good infrastructure
•   Cost-effective fast-track to Asia
•   Politically Stable
•   DIT Support and a strong British
    Chamber
•   Start your business talk - Football!!

Events

• F1 in Schools World Finals: 24-27 Sept ‘17

• Early Childhood Education Seminar: 14 Nov ’17

• Bett Asia Leadership Summit: 15 & 16 Nov ’17

• HRDF & Trainers Conference & Exhibition: 27-29
Nov ’17

• Malaysian TVET Mission to the UK: 22-25 Jan ‘18

Events

•TVET Roadshow in 10 ASEAN countries: 2018-19

• ASEAN UK TVET Lecture Series: 2018-19

• Wilton Park TVET Leadership Conference: Feb ‘18

•The Star Education Fair: Mar ’18

• British Council’s ‘GoingGlobal’: 2-4 May ’18

•The Training Gateway Trade Mission: June ‘18

• Asia HRD Congress: Aug ’18

ASEAN is the place for your business and
 where better to start than - MALAYSIA

               Thank You

DIT KL Education & Training Team
Siva Somasundram
Senior Trade Manager & ASEAN Regional Lead
Education & Training
British High Commission, Kuala Lumpur
Tel: +603-2170 2223, Email: siva.sundram@fco.gov.uk

Husna Hashim
Trade & Prosperity Promotion Manager
Education & Training
Husna.hashim@fco.gov.uk
+603-2170 2221

Fiona Louis
Assistant Trade Manager
Education & Training
Fiona.louis@fco.gov.uk
+603-2170 2208

Team for Education is GREAT Campaign - ASEAN Region

Alison Collingridge, Head of Marketing & GREAT Campaign
Tel: +60 3 2170 2234 (DL) +60 3 2170 2200 (GL) | Mobile: +6012 969 1813 | FTN: 8402 2234 | Email:
Alison.Collingridge@fco.gov.uk

Sarah Tate | Education is GREAT Programme Manager
Mobile: +60 1423 10693 Email: Sarah.Tate@fco.gov.uk