PETALING JAYA: A firm grounding in science, technology, engineering and mathematics (STEM), combined with good technical and vocational education and training (TVET), will spur innovation and, by extension, economic growth, two economists say.
Universiti Malaya professor of economics Rajah Rasiah said STEM subjects are critical in churning out a workforce that can propel Malaysia on its fourth industrial revolution (IR4.0) journey.
At the same time, TVET is essential for developing practical skills for various industries and entrepreneurial ventures, particularly in fields such as climate resilience and digitalisation, he said.
He said students who plan on becoming entrepreneurs or launching a start-up will also benefit from such training.
“TVET and STEM subjects are central to not only help Malaysia transform into a developed economy but also ensure that the labour force in the country enjoys high median wages,” he told FMT.
Rajah pointed out that there is higher risk of unemployment among those who studied to specialise in certain jobs, compared with those who studied TVETsubjects, which provides students hands-on training.
He also said there is a need to debunk the perception that the TVET system is meant to prepare students for dirty, dangerous and demeaning (3D) jobs.
“In Germany and Japan, TVET is highly regarded and plays a crucial role in developing skilled workers,” he said.
Rajah also said that businesses must support the government’s TVET and STEM initiatives by taking in interns from the relevant schools, which he added is widely practised in Germany and Japan.
He said there is a “serious lacuna” in the area of getting students to work in the related industries as an intern, and suggested that these learning institutions provide an allowance to encourage better participation.
Madeline Berma, a senior fellow at the Institut Masa Depan Malaysia, said STEM and TVET subjects have an economic and social return on investment (RoI), particularly in terms of income prospects and career stability.
As of the second quarter of 2024, according to Madeline, semi-skilled workers made up 62.5% of the labour force in Malaysia.
On the other hand, she said, those who are highly skilled accounted for a low 25% of the workforce.
“Malaysia must raise the proportion of its highly skilled workers to 45% of the labour force by 2030 in order to compete with developed countries,” Madeline told FMT.
She pointed out that STEM and TVET graduates have found it easier to secure employment.
Madeline said the impact of globalisation, technological advances and crises like Covid-19 on the country’s labour force has reinforced the importance of STEM and TVET.
“(STEM and TVET) students are able to withstand the pressure as they are equipped with skills such as critical thinking, problem-solving and innovation,” she added.
