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KUALA LUMPUR, 24 OCTOBER 2024 — Sime Kansai Paints Sdn Bhd (Sime Kansai Paints) and Majlis Amanah Rakyat (MARA) have taken a significant step toward transforming technical and vocational education and training (TVET) in Malaysia with their recent signing of a Memorandum of Understanding (MoU). Witnessed by Deputy Prime Minister, Dato’ Seri Dr. Ahmad Zahid Bin Hamidi, and the Chairman of MARA, Datuk Wira Dr Asyraf Wajdi bin Dato’ Dusuki, this partnership is set to raise the standards of education and practical training at Institut Kemahiran Mara (IKM) outposts nationwide, contributing to Malaysia’s National TVET Policy 2030.

The local automotive sector has experienced strong growth over the year, as evidenced by the Malaysian Automobile Association (MAA) increasing its car sales forecast for 2024 by 3.38%, following strong sales in the first half of the year. Unfortunately, this remains moot should the industry’s need for skilled workers remain unmet. The Malaysia Automotive, Robotics, and IoT Institute (MARii) has noted a significant gap in the supply of workers proficient in these advanced skills, which hampers the industry’s progress.

 

By leveraging Sime Kansai Paints’ market leadership in Automotive Coatings in Malaysia, this MoU initiative seeks to foster a skilled workforce at the tertiary level offering opportunities for TVET students to upskill their capabilities to ensure they are ready for the workforce upon graduating. Beginning with Institut Kemahiran MARA Kota Kinabalu, the collaboration between both parties aligns with Malaysia’s broader goals under the National TVET Policy 2030 to equip TVET students with relevant skill-enhancing curricula to create more job opportunities and enhance employability for TVET students in the nation. 

 

Mr. Tan Seng Yang, Managing Director of Sime Kansai Paints Sdn Bhd, emphasised the importance of this collaboration, sharing: “This MoU represents more than just a collaboration. It is an initiative between both parties to elevate and set the new standard for TVET education as we aim to cultivate a highly skilled workforce for the automotive refinishing industry. By incorporating real market practices into our training programs, we are strengthening the relevance of TVET courses and empowering students to tackle future challenges confidently.”

 

The MoU will also see Sime Kansai Paints play an active advisory role to Institut Kemahiran MARA Kota Kinabalu while providing job opportunities within its extensive network — including collaborations with some of Malaysia’s leading automotive companies. At the same time, they will be developing standard operating procedures (SOPs) and providing centres with industrial equipment for students to develop deeper theoretical knowledge and technical experience. This includes programmes covering areas such as industry certification (Industry Certified Painter), colour matching, paint application, trainer certification courses, and more. In addition to giving students an industry-ready education, the practical sessions will also enable students to be up to date with the latest trends and work processes within the industry.  

 

Sime Kansai Paints, a joint venture between Kansai Paint Co., Ltd., Japan and Sime Darby Motors, operates Malaysia’s first waterborne automotive coatings plant at its state-of-the-art facility in Bukit Raja, Klang. As part of their efforts to foster a brighter future for aspiring automotive professionals, Sime Kansai Paints will be participating in the Worldskills Malaysia Sabah 2024 event next month, serving as a panel judge for the event’s Car Painting category. 

 

KUALA LUMPUR, 21 OCTOBER 2024 – Talent Corporation Malaysia Berhad (TalentCorp) welcomes the progressive initiatives presented in Budget 2025, which aim to position Malaysia as a leader in technology, sustainability and innovation. The initiatives strike a crucial balance between driving economic progress and promoting the well-being of the people, ensuring that societal needs remain a priority. With a strong emphasis on government efficiency and improving public services, Budget 2025 sets the foundation for a more resilient nation ready for long-term success.

“Aligned with national goals, allocations in Budget 2025 support TalentCorp’s ongoing efforts to cultivate a skilled and resilient workforce capable of meeting evolving industry needs. As the strategic think tank of the Ministry of Human Resources (KESUMA), we collaborate closely with stakeholders to align Malaysia’s talent development strategies with the nation’s growth ambitions. Initiatives such as the MyMAHIR Future Skills Talent Council (FSTC) and the Malaysia Critical Occupations List (MyCOL) play crucial roles in identifying and addressing skills gaps, and taking steps to build a globally competitive workforce,” commented Thomas Mathew, Group Chief Executive Officer, Talent Corporation Malaysia Berhad.

Bridging Talent Gaps through Structured Internships

A prominent measure in Budget 2025 is the extension of the National Structured Internship Programme (MySIP) until 2030, now also incorporating students interning in regulatory bodies. This expansion aims to provide young talents with critical hands-on experience, enhancing their employability and ensuring a stronger alignment between education and industry requirements. The focus on expanding internship opportunities reflects a broader strategy to bridge the gap between academia and the professional world.

Another key initiative that supports this strategy is the Internship Matching Grant for SMEs and Start-ups (LiKES). Launched in March 2024, LiKES has received an additional RM10 million to support quality internships, particularly in STEM fields. By early October 2024, over 774 companies had registered under LiKES, hiring 6,000 interns across Malaysia. This funding aims to empower SMEs and start-ups, especially those outside major urban areas, providing them with the resources to nurture young talent and drive innovation.

Preparing the Workforce for a Changing Landscape

In parallel, the RM7.5 billion allocation towards Technical and Vocational Education and Training (TVET) is evidence of the government’s commitment to workforce readiness, with a focus on key sectors such as Maintenance, Repair and Overhaul (MRO), Electric Vehicles (EV), aerospace, and Artificial Intelligence (AI) to prepare Malaysians for the evolving landscape of emerging industries and economic demands. 

“By equipping the workforce with specialised skills, the government aims to future-proof Malaysia’s talent pool and strengthen its competitiveness in high-value industries. TalentCorp remains dedicated to supporting these efforts through initiatives that nurture high-value employment opportunities and foster a resilient talent ecosystem,” he added.

Promoting Work-Life Sustainability and Inclusive Practices

Budget 2025 extends tax incentives for employers hiring women returning to work after a career break. These incentives, valid for applications from 1 January 2018 to 31 December 2027, offer a 50% additional deduction on employment expenses for a 12-month period, encouraging greater female workforce participation.

Recognising the challenges faced by working caregivers, the government has introduced a 50% additional deduction for employers who provide paid caregiving leave of up to 12 months. This policy aligns with Malaysia’s broader care economy efforts to support job retention and promote work-life balance for employees fulfilling caregiving responsibilities for children, ill or disabled family members.

To further enhance workplace flexibility, Budget 2025 offers a one-off tax incentive for employers investing in capacity building and digital tools to implement flexible work arrangements (FWA). The expenses eligible for the incentive are capped at RM500,000 and must be verified by TalentCorp. “We are further playing a part in supporting work-life balance through TalentCorp’s Work-Life Sustainability advocacy programme, where we offer free workshops to assist employers in effectively implementing FWAs, reinforcing our commitment to fostering a healthier and balanced workforce,” Thomas Mathew remarked. 

Commited to Long-Term Success

Looking ahead, TalentCorp is geared up to maintain a robust pace in empowering Malaysia’s workforce to adapt and thrive in an evolving economic landscape. “By collaborating with industry leaders and stakeholders, we aim to catalyse a talent ecosystem that integrates innovation, sustainability and inclusivity, positioning Malaysia as a global hub for talent and innovation,” he concluded.

18 October 2024

As Malaysia gears up for 2025, the need for robust reforms to bolster its position as a leading business hub in Southeast Asia is more pressing than ever. Members of the Institute of Chartered Accountants in England and Wales (ICAEW) Kevin Foo, Elliot Chaw, Anitha Poopalasingam, Dr. Lim Kim-Hwa, and Dato’ Megat Iskandar Shah highlighted key initiatives which could significantly enhance Malaysia’s global competitiveness while ensuring sustainable economic growth.

Enhancing the Business Environment

The recently tabled Budget 2025 aims to enhance Malaysia’s global competitiveness by improving the “Ease of Doing Business” and catalysing the areas of emphasis for the New Industrial Master Plan (NIMP) 2030 to attract new businesses and expand existing investments.

Kevin Foo, Partner at KPMG in Malaysia and Past Chairman of the ICAEW Members’ Society Malaysian Chapter emphasises Malaysia’s strategic advantages as a thriving hub for investment, underscored by its dynamic economy and diverse, multilingual population. However, he cautions that as global markets evolve and competition intensifies, Malaysia must refine its business environment to retain its appeal to multinational corporations. Budget 2025 marks a pivotal opportunity to enact these reforms, advocating for a more streamlined approach to facilitate business growth.

Elliot Chaw, Associate Director of Corporate Tax Advisory at KPMG in Malaysia adds that one of the standout initiatives is the launch of the Forest City Special Financial Zone, introducing Malaysia’s first family office framework outside Labuan. This initiative aims to attract high-net-worth individuals through a well-structured legal and tax framework, fostering confidence and reinvestment in the national economy. Such a framework could serve as a sandbox for innovative financial solutions, encouraging families to manage their wealth while contributing to Malaysia’s economic growth.

 

Clarity and Consistency in Regulations

The importance of having a stable and transparent regulatory system cannot be overstated. Both Foo and Chaw agree that any inconsistencies in the regulations and practices across states could hinder foreign investments, especially in large-scale developments. They suggest that harmonising processes for licensing, environmental approvals, and land-use permits in a digital, single window platform would reduce delays and create a more favourable investment climate. A stable environment with clear “rules of the game” will bolster investor confidence and attract long-term commitments from both domestic and foreign investors.

 

Immigration Reforms: Attracting Global Talent

Reforming Malaysia’s immigration policies is vital for staying competitive in the global race for talent. Foo and Chaw assert that “Simplifying and expediting work visa and residency programme, particularly for investors and specialised talent, will strengthen Malaysia’s appeal as a business hub.” Drawing parallels with Singapore’s Tech Pass, they suggest a fast-track residency programme for skilled foreign workers, investors, and entrepreneurs which could significantly enhance Malaysia’s competitiveness.

 

Streamlining the Investment Processes

Anitha Poopalasingam, former Senior Director of Group Internal Audit at Maybank stresses the importance of streamlining the investment approval process and establishing a new investment fund to attract foreign direct investment. “Reducing approval times will enhance efficiency, making it easier for investors to navigate regulatory requirements,” she explains. A clear and efficient investment framework will not only boost investor confidence but also drive job creation and economic growth.

 

Poopalasingam highlights that targeted investment funds can focus on specific sectors aligned with national priorities, such as technology and renewable energy, creating a diverse business ecosystem. “By promoting sector-specific investments, we can drive growth in key areas and support local SMEs which are vital to Malaysia’s economy,” she states.

 

Promoting Sustainability and Green Growth

In line with the Ekonomi MADANI framework, the Ministry of Finance is spearheading initiatives to synergise efforts across government-linked entities to catalyse growth in key economic sectors. Poopalasingam notes, “The focus on renewable energy helps diversify Malaysia’s economy, making it more resilient to global market fluctuations.” Investments in renewable energy not only address immediate environmental concerns but also ensure long-term economic viability.

 

Digital Infrastructure Investment

As outlined in Mission 2 of NIMP 2030, Budget 2025 also proposes to augment local innovation and technology to enable effective competition on both the regional and global fronts. This involves leveraging automation, artificial intelligence and machine learning to boost productivity, streamline costs and foster sustainable growth across sectors.

CEO of Cammillion and Fellow in Finance at Cambridge University Dr Lim Kim-Hwa emphasises the importance of staying at the forefront of the digital revolution. “While hardware investment is essential, the application of digital technology is equally important. We must focus on how the digital economy can enhance competitiveness as well as disintermediate and thus reduce time and distance to market,” he explains. Improving digital connectivity, especially in rural areas is crucial for promoting inclusiveness and allowing all sectors of society to benefit from the global digital economy.

To effectively connect rural areas, Dr Lim advocates for adapting education and training programmes to deliver the required upskilling. “Integrating digital education into the curriculum will prepare the workforce for emerging opportunities in the digital landscape,” he adds.

 

Empowering SMEs through Ekonomi MADANI

Dato’ Megat Iskandar Shah, Partner and Deputy Assurance Leader at Ernst & Young Malaysia, highlights the crucial role that SMEs play under the Ekonomi MADANI framework. “SMEs are the backbone of Malaysia’s economy, representing 97% of businesses and nearly half of the workforce. Ensuring their growth and sustainability is vital to the nation’s economic trajectory, particularly in accessing financing and expanding export readiness.”

 

Megat stresses that while existing government initiatives provide support, more innovative financing solutions are needed to bridge current gaps. “Alternative financing options like digital lending platforms and venture capital can better cater to the unique needs of SMEs, helping them access funds more efficiently and participate in high-value sectors aligned with NIMP 2030.”

 

On enhancing export readiness, Megat stresses the need to equip SMEs with the right tools and training to compete globally. “Expanding trade facilitation services, improving digital infrastructure, and investing in workforce development, particularly in digital skills, are critical to boosting international competitiveness and driving innovation. By preparing SMEs for the demands of the digital economy, we can unlock new growth opportunities and enhance productivity across sectors.”

 

He concludes by emphasising the need for stronger collaboration between SMEs, government agencies, and financial institutions to drive long-term growth. By working together, these entities can ensure that SMEs fully capitalise on the opportunities presented by the Ekonomi MADANI framework, contributing significantly to Malaysia’s future economic success.

 

A Call for Decisive Action

In conclusion, Budget 2025 presents an opportunity for Malaysia to enact crucial reforms that will strengthen its global competitiveness. By simplifying business operations, enhancing regulatory frameworks, and investing in digital infrastructure and sustainability, Malaysia can attract foreign investment, generate jobs, and foster innovation. As the country navigates an increasingly interconnected world, now is the time for decisive action to secure Malaysia’s future as a thriving, competitive economy. ICAEW believes that chartered accountancy can be a force for positive change. By sharing insight, expertise and understanding, the professional organisation hopes to continue helping create sustainable economies and a better future for all.