MALAYSIA

ASEAN

Siva SomasundramSenior Trade Manager and ASEAN LeadEducation & TrainingBritish High Commission, Malaysia

+603-2170 2223 Siva.Sundram@fco.gov.uk

Malaysia’s Strategic Location

UNCLASSIFIED

ASEAN

633m

1.38bn

1.33bn

25m

Heart ofAsia

32m

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.

NCER : NORTHERN

CORRIDOR ECONOMIC

REGION

ECER : EAST COAST

ECONOMIC REGION

RECODA: REGIONAL

CORRIDOR OF

DEVELOPMENT AUTHORITY

IRDA : ISKANDAR

REGION

SDC : SABAH

DEVELOPMENT

CORRIDOR

Greater

KL/KV

LABUAN FSA

Greater KL / Klang Valley Links to Corridors of Opportunity

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 SomasundramSenior Trade Manager & ASEAN Regional LeadEducation & TrainingBritish High Commission, Kuala LumpurTel: +603-2170 2223, Email: siva.sundram@fco.gov.uk

Husna Hashim Trade & Prosperity Promotion ManagerEducation & TrainingHusna.hashim@fco.gov.uk+603-2170 2221

Fiona LouisAssistant Trade ManagerEducation & TrainingFiona.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