TRAINING SUPPLY IN MALAYSIA - NO. 1 / 2021 - HRD CORP INDUSTRIAL INTELLIGENCE REPORT
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NO. 1 / 2021 TRAINING SUPPLY IN MALAYSIA HRD CORP INDUSTRIAL INTELLIGENCE REPORT
No. 1 / 2021: Training Supply in Malaysia
INTRODUCTION
What's Inside?
The HRD Corp Industry Intelligence Report aims to disseminate information about the
human capital and learning environment based on HRD Corp's internal data and market
movements. This issue of Training Supply in Malaysia focuses on the population, types of
training, financial assistance, training performance outlook and strategic initiatives to
support Malaysia's training supply.
Developing skills is as important as
training. A large effort is needed to
create a skilled workforce with M. M. Pallam Raju
Former Union Minister of Human
employment potential.
Resource and Development of India
Training and development are most effective when they are conducted strategically. This
requires a strong focus on content development, delivery methods and technological
integration (Harward & Taylor, 2014). At 94%, the majority of Malaysian respondents
regard upskilling as important. This is particularly the case in the areas of digital and
remote working-related skills (Hays: Uncovering the DNA of the Future Workplace in Asia,
2020). Every employer and employee should be trained to ensure that they have the
understanding and skills required to deal with the integration of elements within cyber-
physical systems such as Advanced Robotics, Communications and Networking, Artificial
Intelligence and the Internet of Things (IoT) as we progress through the Fourth Industrial
Revolution (IR 4.0).
Additionally, Malaysia’s efforts to drive digital talent development and workforce upskilling
have received global recognition in the recently released Global Talent Competitiveness
Index 2020 (GTCI 2020). Without adequate preparation and ability enhancement,
employees may feel uncomfortable and stressed during this integration. Therefore, it is
the responsibility of the training provider to assist leaders in developing the ability to
initiate and manage internal changes.
Training Supply for Malaysians by HRD Corp
Over the years, HRD Corp has launched various initiatives that enable employers to
enhance their employees' skills and knowledge, aligned with industrial needs. With 35 skill
areas covered by HRD Corp-registered training providers in 76 subsectors as of May
2021, employers are able to upskill their employees through recognised and certified
training providers by utilising their levy. This report will portray the current HRD Corp
training supply trend and initiatives that employers can benefit from in the development
of skills in the work environment. The overall performance analysis is based on HRD
Corp's internal data.
HRD Corp Industrial Intelligence Report 2
TRAINING PROVIDERS IN MALAYSIA
5,568 active training
According to HRD Corp's internal data, as of April 2021, there are 5,568 active training
providers
providers registered under HRD Corp. As most of the economic activities are concentrated
in Selangor, there is a high number of active registered training providers located in the
state, which is 45% (2,498) of all providers. The state with the lowest number of registered
training providers is Labuan, with only four (4) training providers (0.1%).
Distribution of Active Registered Training Providers by States
Total Active Training Providers: 5,568
Perlis
12 | 0.2% Perak
Total Trainers: 11,731
156 | 2.8%
Kedah Kelantan
75 | 1.3% 30 | 0.5%
Penang Sabah
329 | 5.9% 121| 2.2%
Terengganu
54 | 1.0%
Labuan
4| 0.1%
Pahang
Selangor
62 | 1.1% Sarawak
2,498| 44.9%
155 | 2.8%
Kuala Lumpur
1,460 | 26.2%
Johor
328| 5.9%
Putrajaya
23 | 0.4%
Negeri Sembilan
171 | 3.1% Melaka
90 | 1.6%
Training Activities by Registered Training Providers
125,000
Number of Applications
100,000
75,000
50,000
25,000
0
2017 2018 2019 2020 2021 (Jan - Apr)
Year
The trend shows HRD Corp-registered training providers' activities increased by 67% (92,876)
5
and 19% (110,482) respectively in 2018 and 2019. It started to decline as COVID-19 hit us in
2020 by 39% with 67,578 training applications approved. Earlier in 2021, there were 23,163
5
training applications approved from January to April 2021. At this rate, with the inclusion of
newly covered sectors, more than 90,000 training activities are predicted to be covered by
HRD Corp by end of 2021.
HRD Corp Industrial Intelligence Report 3
TYPES OF TRAINING IN MALAYSIA
The pace and scale of disruption brought forth by IR 4.0 would require more than one billion
people in the world to be reskilled by 2030 (World Economic Forum, 2020). Employers need to be
more creative and informed of the accelerated pace of technological development to meet the
industry's needs.
Training patterns started to change after the pandemic struck us in 2020. According to HRD Corp's
internal training places data, the most common modes of training performed in 2018 and 2019
were in-house, public, and e-Learning. In-house training was the top mode of training chosen by
the employer in the past but it dropped by 11.1% in 2020 due to restrictions in mass gathering and
physical distancing. Following the pandemic, most training providers switched to online training,
resulting in the increase in e-Learning from 2.6% in 2019 to 11.1% in 2020, with Remote Online
Learning being the most preferred mode of engagement.
Notably, half of Malaysia's employers (50%) now provide e-learning opportunities (Hays: Uncovering
the DNA of the Future Workplace in Asia, 2020). Online learning became the most relevant
alternative and option for employers to ensure employees' development, even in times of crisis.
Breakdown of the Type of Trainings by Training Places
e-Learning
e-Learning
Public 0.1% e-Learning
Public 0.3% Public
15.3% 3%
14.9% 10.8%
Remote Online Learning
11.4%
In-house In-house
In-house
84.6% 74.9%
84.8%
2018 2019 2020
FINANCIAL ASSISTANCE APPROVED FOR TRAINING
Rapidly evolving technology, regulatory constraints and relentless pressure to hit short-term
financial targets may be hindering firms from making needed investments to upskill their
employees. Instead of the cost of training, one of the biggest concerns that employers have about
sending their employees for training is whether the knowledge from said training is necessary for
the employee's skills and development. HRD Corp's data from January to May 2021 revealed that
organisations in Malaysia invested a total of RM13.6 million into employee training, which covered
external and internal trainer fees.
Trainings conducted by external trainers were the most preferred approach in 2021. There were
73% (3,534) grant applications for external trainers and 27% (1,286) for internal trainers as of May
2021. The certification level for courses related to external trainers were mostly Certificate of
Attendance 67% (3,248) and Professional Certificate 6% (265) which required professional trainers
and experts in related skill areas such as Safety and Health, Quality and Productivity, Education or
Training and Management or Strategic Management.
HRD Corp Industrial Intelligence Report 4No. 1 / 2021:Training Supply in Malaysia
TRAINING PERFORMANCE OUTLOOK
The third strategic thrust in the Shared Prosperity Vision 2030 aims for 40% of HRD Corp trainings
to be in skills related to IR 4.0 by 2030. The skills include Big Data, Artificial Intelligence, Augmented
Reality (AR) and Machine Learning. In May 2021, HRD Corp's internal database showed Safety and
Health as the top skill area with 18% courses offered out of 35 skill areas. This is due to each
industry's need. The next highest skill areas covered are Quality & Productivity as well as Computer
or Information Technology with 8% and 7% of training courses approved. The top courses
approved were Essential Skills of Developing Future Leaders 0.45% (113), Food Handler 0.38% (96)
and Developing Data-Driven High Potential Employees 0.35% (88). Employers are encouraged to
work hand in hand with the associations or training providers in developing more meaningful
modules related to IR4.0. This will ensure that all industry players can reach the level of digitally-
driven workforce required by the nation in the near future.
Competency Areas by Training Course Applications
Safety And Health 17.7%
Quality And Productivity 8.2%
Computer or Information And Technology 7.9%
Education or Training 7.2%
Human Resources 7.2%
Management or Strategic Management 7.0%
Audit or Tax 5.2%
Accounting or Finance 5.0%
Legal And Law 3.3%
Engineering 3.2%
Manufacturing or Production 3.1%
Marketing And Sales 2.8%
Purchasing or Logistics or Supply Chain 2.4%
Food And Beverages 2.4%
Process And Operation 2.3%
Skill Areas
Supervisory 2.3%
Maintenance or System And Control 1.9%
Medical or Healthcare 1.7%
Public Relations or Customer Service 1.4%
Administration or Clerical 1.3%
Journalist or Publishing or Communication or Media 1.0%
Team Building or Motivation 1.0%
Aviation 0.6%
Language 0.5%
Creativity And Innovation 0.5%
Ship or Maritime Handling 0.5%
Security or Armed Forces 0.4%
Retail or Merchandising 0.4%
Research And Development 0.4%
New or High Technology 0.3%
Hotel or Tourism 0.3%
Creative Design 0.2%
Actuarial or Statistics 0.2%
Biotechnology or Chemistry 0.2%
Port Management 0.1%
0 1,000 2,000 3,000 4,000 5,000
Percentage of Course Applications
HRD Corp Industrial Intelligence Report 5No. 1 / 2021:Training Supply in Malaysia
STRATEGIC INITIATIVES
HRD Corp's upskilling and reskilling master plan emphasises diversity and inclusion to better fulfill
Malaysian's training interest. HRD Corp's focus group are the employees, Persons with Disabilities
(PWDs), low income groups (B40), underprivileged youths, ex-servicemen, latent housewives, ex-
prisoners, SMEs and retirees. In December 2020, the top courses offered in this strategic initiative
were related to digitalisation and IR 4.0, entrepreneurship as well as SME development. Some of
the schemes benefited young graduates, who enjoyed upskilling and reskilling in the early stages
of their involvement in the industry, as this era pushes for advancements in Artificial Intelligence
(AI) and automation. Based on the types of courses available, we are at a reasonable stage to meet
the national goal of producing at least 40% of workers trained in IR 4.0 through HRD Corp training
programmes by 2030.
HEARTS
Housewives Enhancement and Reactive
SME Skills Talent
INDCERT B40CaB
Industry Certification B40 Capability Building
STRATEGIC
INITIATIVE
2019 -2020 TVET YOUTH
SLDN - APPRENTICESHIP
OTEP
OKU Talent Enhncement
GENERATE 2.0 Programme
Graduates Employment Programme for
employability SME GRADUATES RPEL
Recognition of Prior Employability Learning
Top 3 Courses under Strategic Initiatives Offered by HRD Corp Registered Training Providers
as of December 2020
INDCERT B40 SME Skills
1. Big Data Analytics for Cyber 1. Entrepreneurship & Financial 1. SME Change Leadership
Physical Production System (CPPS) Programme for the B40 Group (25 Courses)
(44 Courses) (130 Courses)
2. Professional Certificate in 2. Safety and Health Officer 2. Food Safety Management System
Warehouse Management (44 Courses) Standard & Awareness Training
(37 Courses) (25 Courses)
3. Industrial Revolution 4.0 - 3. Site Safety Supervisor 3. Industrial Revolution 4.0 -
Cyber Security (42 Courses) Foundation/Get Started
(25 Courses) with Smart Factory (25 Courses)
CONCLUSION
Training supply in Malaysia has undergone significant progress towards the national agenda of
accelerating the adoption of digital foundations outlined in the Malaysian Digital Economy
Blueprint 2020. All industry players should pay special attention to the training needs of digital
skills in their current workforce. The trend in training methods has evolved over the years from
instructor-led classrooms to learner-driven online platforms. Fast-paced technological
developments have made over the traditional approach by enhancing efficiency in employee
training in order to produce expertise for every industry. This will place Malaysia in good stead to
become a digitally-driven, high-income nation and a regional leader for the digital environment of
the future.
HRD Corp Industrial Intelligence Report 6You can also read
