Human Capital Development in Malaysia: Issues and Challenges

Abstract

Malaysia has shifted from a labor-intensive, agriculture-based economy since its independence in 1957 to a knowledge and innovation-based economy. Human capital development (HCD) is a key enabler for driving and sustaining Malaysia's socioeconomic growth. The education and training system is the main platform for HCD intervention. To sustain and achieve goals, long-term survival, competitive advantage, and sustainability, the workforce is optimized through comprehensive HCD interventions to provide the necessary knowledge, skills, and competencies needed to work effectively in a rapidly changing and complex environment. Numerous efforts have been made by the government to ensure that the education and training system has the capacity to enhance the quality and availability of intellectual and skilled human capital to support the transition toward knowledge-intensive activities, sustain economic growth, and compete in the global market. The country's development plans and policies as well as the economic development which lead toward a knowledge-based economy with a knowledge-based workforce have charted out clear transformation journeys for the development of the human capital ecosystem. This chapter presents an overview of the landscape of HCD in Malaysia. Relevant reports, plans, policies, and strategies to strengthen human capital through education and training is reviewed. Finally, a few issues and challenges that Malaysia experiences are discussed.

Citation

Azizan, N., Pangil, F. and Zin, M.L.M. (2021), "Human Capital Development in Malaysia: Issues and Challenges", Sergi, B.S. and Jaaffar, A.R. (Ed.) Modeling Economic Growth in Contemporary Malaysia (Entrepreneurship and Global Economic Growth), Emerald Publishing Limited, Leeds, pp. 151-175. https://doi.org/10.1108/978-1-80043-806-420211013