KESUMA Moves To Amend Act 652, Elevate High-level TVET To Meet Industry Demands

KUALA LUMPUR, July 17 (Bernama) -- The Human Resources Ministry (KESUMA) is amending the National Skills Development Act 2006 (Act 652) to enable the recruitment of trainees and workers with Malaysian Skills Certificates (SKM) at Levels 6, 7, and 8.

Minister Steven Sim Chee Keong said the current legislation only allows for the hiring of individuals with SKM qualifications up to Level 5.

He said the amendment is essential to elevate the standing of Technical and Vocational Education and Training (TVET) and to boost Malaysia’s skills-based industries.

“We hope the bill can be tabled in Parliament this year,” he said during his speech at the National Economic Forum 2025 here today.

In September last year, Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi announced the government’s in-principle agreement to recognise SKM Levels 6 to 8 as equivalent to a bachelor's degree.

In a move to demonstrate that TVET is on par with other forms of tertiary education, Sim also announced that he will personally undergo SKM training in the Industrial Training Institute (ILP), Melaka.

"I want to show that TVET is a viable option. Now imagine if leaders like you, corporate leaders and employers understand how TVET works because you've experienced it yourselves.

“You will likely take more graduates from the TVET stream after learning about how it works,” he said, inviting public and private sector individuals to join his initiative.

Sim noted that the government spends about RM6 billion to RM7 billion annually on TVET education, and when combined with contributions from the Human Resource Development (HRD) levy, the total outlay could reach nearly RM10 billion a year.

“If we can consolidate and strategise, I think we can more than prepare our economy, our industry and our workers for the future,” he said.

Meanwhile, Sim also shared KESUMA’s vision for building a high-quality TVET learning ecosystem, anchored on the three pillars of Triple A: accessibility, adaptability, and admirability.

On accessibility, he said the ministry developed a one-stop online portal last year to streamline applications for TVET programmes nationwide, resulting in a 30 percent increase in enrolment compared to pre-pandemic levels.

“There is no one-stop online portal for TVET, but there are over 600 TVET institutions in this country. You have to visit their websites one by one. Some of them don’t even have an online application system. 

“But last year, when I came into KESUMA, I said, we have to facilitate people wanting to study TVET and make it easier, more accessible. There were almost 440,000 enrollments last year in TVET,” he said.

On adaptability, Sim highlighted the Academy in Industry programme, a flagship initiative that embeds training within real industry settings instead of conventional classrooms.

Sim said the ministry has partnered with nearly 2,000 companies to date, creating over 5,000 placements for trainees to receive hands-on training with allowance and obtain nationally recognised certifications.

He also highlighted the Incentive for Practical Training or Ilham KESUMA programme, which aims to create 20,000 structured internship opportunities annually, positioning the ministry as one of the country’s largest internship facilitators.

“We believe that a structured internship is a human capital development method. We are also talking to the Ministry of Higher Education to look into longer-term internships for university students without adding more time to their degrees,” he added.

To enhance admirability, which refers to encouraging greater industry participation, Sim said KESUMA, through TalentCorp, offers double tax deductions for internship-related expenses.

The ministry also provides matching grants for small and medium enterprises (SMEs), particularly in rural areas, along with flexibility in using the HRD Corp levy to cover intern allowances.

-- BERNAMA