How Malaysian states and sectors fared on the National Training Index 2022

By sector, manufacturing led the way with a score of 0.98, followed by services (0.85) and mining & quarrying (0.77), all of which were deemed as 'leaders'.

The National Training Index 2022, released on Tuesday (5 September 2023), has proven that Malaysia has an established training system and a strong focus on lifelong learning and skills development, according to HRD Corp.

In specifics, the country scored a national average of 0.70 on the Index in the year – categorising Malaysia as 'experienced', indicating that employers in Malaysia have a high capacity for performance in terms of training preparedness, competencies of training providers, commitment to upskilling and reskilling and high adaptation to digital learning. 

The NTI 2022 was derived based on HRD Corp data, which highlights the current lifelong learning performance focusing on three significant dimensions:

• Firm preparedness: Seven indicators were identified to assess firm preparedness, which measures employers’ readiness or availability towards workers' upskilling and reskilling in terms of allocation, the number of workers participating in training, recognition after training, and facility or training support for learning.
  
  
• Workers' skill development: Four indicators were identified to assess the skills development dimension, which measures workers’ competencies and skills, e.g., the level of certification, duration of the training, types of training skills and the skills transferable to the workplace.
  
  
• Training providers' effectiveness: Eight indicators were identified to assess training providers’ effectiveness, which measures training providers' quality and availability to support the learning ecosystem from the perspectives of course content, digital training platform, issuance of certification, trainers' competency and training facilities.

According to HRD Corp, the NTI report will be published annually, with 2022 as a baseline. The report provides a strategic benchmarking tool for organisations and Governments to develop human capital policies.

By allowing cross-organisation comparison in training performance, the report aims to shape human capital development strategies and monitor training performance in public and private sector organisations over time and across industries.

Snippets of the NTI 2022 report are shared below:

NTI scores by sector and state

In terms of scoring on the index, by sector, manufacturing led the way with a score of 0.98, followed by services (0.85) and mining & quarrying (0.77), all of which were deemed as 'leaders'. Meanwhile, agriculture, forestry & fishing (0.48) and construction (0.44) were considered 'adopters', as both are newly covered sectors under the expansion of the PSMB (Pembangunan Sumber Manusia Berhad) Act 2001.

Next, looking at the statistics of training places by state, Selangor recorded the highest number of training participation in 2022 (533,556), followed quite closely by Kuala Lumpur (410,093). The data for the remaining states is as follows:

• Penang: 147,756
• Johor: 133,033
• Sarawak: 47,131
• Perak: 40,964
• Kedah: 38,636
• Negeri Sembilan: 38,512
• Melaka: 35,773
• Pahang: 26,031
• Sabah: 19,628
• Terengganu: 13,400
• Kelantan: 5,599
• Labuan: 3,288
• Putrajaya: 2,685
• Perlis: 1,179

 How the scoring works:

The following table outlines the scores: 

The report divided the training participation of employers in 2022 is separated into two categories, namely, employers registered under existing subsectors before the expansion of the PSMB Act 2001, and employers registered under the newly covered subsectors after the expansion of the PSMB Act 2001 effective March 2021. A total of 16,741 employers under the subsectors before the expansion of the PSMB Act 2001 and 7,774 under the newly covered subsectors actively engaged in training throughout 2022.

On the overall Index, the following areas of strength were identified:

• D1I6: Available training facilities at own premise (1.00)
• D1I7: Available designated training unit (1.00)
• D3I3: High enrolment to courses with regular content evaluation (1.00)
• D3I5: High enrolment in digital training (1.00)
• D3I6: High enrolment for regular/repetitive courses (1.00)
• D3I7: High enrolment in training provider with complete training facilities (1.00)
• D3I1: High enrolment in competent training provider (0.88)
• D2I1: High number of training days (0.80)
• D1I4: Adequate number of skilled workers trained (0.71)
• D3I4: Adequate enrolment in training provider for certification course (0.62)
• D1I1: Adequate amount of financial assistance allocated for training per worker (0.55)
• D1I3: Adequate number of employees trained (0.53)

The following areas of improvement were also identified:

• D2I3: Less number of skilled workers who attended certification courses (0.44)
• D3I8: Less enrolment with established training provider (0.43)
• D2I2: Less enrolment in technical courses (0.35)
• D2I4: Less enrolment in practical/hands-on training (0.34)
• D1I5: Low enrolment in Recognition of Prior Learning (RPL) (0.20)
• D1I2: Low utilisation of HRD Corp levy (0.13)
• D3I2: Low enrolment with a certified trainer (0.02)

On the NTI for existing employers registered before the expansion of the PSMB Act 2001, the following were identified:

Areas of strength:

• D1I6: Available training facilities at own premise (1.00)
• D1I7: Available designated training unit (1.00)
• D3I3: High enrolment to courses with regular content evaluation (1.00)
• D3I5: High enrolment in digital training (1.00)
• D3I6: High enrolment for regular/repetitive courses (1.00)
• D3I7: High enrolment in training provider with complete training facilities (1.00)
• D3I4: High enrolment in training provider for certification course (0.98)
• D2I1: High number of training days (0.95)
• D1I1: Low amount of financial assistance allocated for training per worker (0.82)
• D1I4: High number of skilled workers trained (0.89)
• D3I1: High enrolment in competent training provider (0.88)
• D1I3: High number of employees trained (0.85)
• D2I3: Adequate number of skilled workers who attended certification courses (0.65)

Areas of improvement:

• D2I2: Less enrolment in technical courses (0.44)
• D3I8: Less enrolment with established training provider (0.43)
• D2I4: Less enrolment in practical/hands-on training(0.42)
• D1I5: Less enrolment in Recognition of Prior Learning (RPL) (0.29)
• D1I2: Low utilisation of HRD Corp levy (0.22)
• D3I2: Low enrolment with a certified trainer (0.02)

Finally, the following were identified on the NTI for new employers registered after the expansion of the PSMB Act 2001:

Areas of strength:

• D1I6: Available training facilities at own premise (1.00)
• D1I7: Available designated training unit (1.00)
• D3I3: High enrolment to courses with regular content evaluation (1.00)
• D3I5: High enrolment in digital training (1.00)
• D3I6: High enrolment for regular/repetitive courses (1.00)
• D3I7: High enrolment in training provider with complete training facilities (1.00)
• D3I1: High enrolment in competent training provider (0.89)
• D2I1: Adequate number of training days (0.57)
• D1I4: Adequate number of skilled workers trained (0.55)

Areas of improvement:

• D3I8: Less enrolment with established training provider (0.44)
• D1I1: Less amount of financial assistance allocated for training per worker (0.40)
• D3I4: Less enrolment in training provider for certification course (0.26)
• D2I3: Low number of skilled workers who attended certification courses (0.25)
• D1I3: Low number of employees trained (0.20)
• D2I4: Low enrolment in practical/hands-on training (0.09)
• D2I2: Low enrolment in the technical courses (0.08)
• D1I2: Low utilisation of HRD Corp levy (0.05)
• D1I5: Low enrolment in Recognition of Prior Learning (0.02)
• D3I2: Low enrolment with certified trainer (0.02)

As detailed in the report, the results for the second and third indicate that lifelong learning could positively impact labour productivity in Malaysia. "Individuals who engage in ongoing learning will likely be more productive in their jobs, leading to economic growth and prosperity.

"This statement is supported by data showing that the GDP in all economic sectors continued to grow despite the pandemic, indicating that lifelong learning may have played a role in maintaining or even increasing labour productivity during a challenging time."

Additionally, it shared, the rise of a digital learning culture among employees due to convenience and flexibility has also made the workforce more adaptable, knowledgeable and skilled, increasing the country’s productivity and competitiveness. 

Adaptability to a digital learning culture

On the topic of a digital learning culture, the report noted that in Malaysia, the training trends across various industries have shifted towards more technology-driven and personalised approaches – these include digital learning platforms, virtual classrooms, and e-learning solutions. 

Based on the 2022 statistics, employers in the services sector, such as those in finance, insurance, and telecommunications, recognise the need to keep their employees up-to-date with the latest digital technologies and skills.

The manufacturing sector also embraced digital training, with new technologies and automation playing a significant role in shaping the sector’s future. In particular, technical training remains a priority in the sector, as employers strive to improve their competitiveness by investing in their employees’ technical knowledge and skills. Typical employee training and development areas include lean manufacturing, quality control and machine maintenance.

Meanwhile, the construction, agriculture, fishing & forestry, and mining & quarrying industries have generally embraced digital training slower than the services and manufacturing sectors, it was shared.

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