OUTCOME-BASED FINANCING TO STRENGTHEN TVET ECOSYSTEM - EXPERT

KUALA LUMPUR, Nov 12 (Bernama) -- A new outcome-based financing approach by the Skills Development Fund Corporation (PTPK) is being hailed as a major reform to ensure that every government investment in Technical and Vocational Education and Training (TVET) delivers tangible benefits to trainees, industry, and the nation.

Yayasan Mahir Malaysia president Datuk P. Sri Ganes said the initiative deserves recognition as it demands higher accountability from training providers while preventing funds from being channelled to irrelevant programmes.

He said the approach aligns with the National TVET Policy 2030, which emphasises trainee outcomes, the empowerment of training institutions, and efficient use of funds.

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Sri Ganes also urged Malaysia to emulate China, which brands its institutions as High-Impact TVET Institutions that act as drivers of innovation and technology.

“Graduates need to be not only technically skilled but also prepared for the digital and green economy. This model can serve as a guide to enhance global competitiveness,” he said in a statement to Bernama.

He also commended the government’s commitment in allocating RM7.9 billion for the TVET sector in Budget 2026, including RM650 million for PTPK-funded skills programmes in high-growth areas such as artificial intelligence (AI), electric vehicles (EV) and semiconductors.

“We commend the Ministry of Human Resources and PTPK for boldly implementing an impact-based policy that provides long-term benefits to the nation’s workforce,” he said.

-- BERNAMA