Critical Success Factors (CSFs) of Industry Centre of Excellence (ICoE) Performance at Majlis Amanah Rakyat (MARA) Technical and Vocational Education

1. Introduction

Technical and Vocational Education and Training (TVET) refers to a specific component of the educational process that encompasses the study of technologies, related sciences, and the acquisition of practical skills, attitudes, understanding, and knowledge pertaining to occupations in diverse sectors of economic and social life that is in addition to the general education. (United Nations Educational, Scientific and Cultural Organization, 2015). TVET has gained attention from stakeholders amongst the public because of its ability to contribute towards economic growth and provide a skilful workforce. TVET is an alternative path for developing high-skilled workers and responding to the economy’s labour market needs and strengthening society (Malaysia Ministry of Education, 2015; Petnuchová et al., 2012).

In accordance with Strategic Thrust 3 outlined in the Shared Prosperity Vision 2030, Malaysia has set a goal to achieve a 35% representation of highly skilled workers within the employment market (Ministry of Economic Affairs, 2019). According to the Pocket Stats Quarter 4 2020 report, the proportion of high-skilled workers is at 30.7%, whereas semi-skilled workers account for 59.5% and low-skilled workers make up 11.7% of the workforce (Malaysia Department of Statistics, 2020). In order to attain a workforce composed of 35% highly skilled individuals by the year 2025, and to provide support for the Economic Transformation Programme (ETP) implemented by the Malaysian government, it is imperative for Malaysia to augment the enrolment of Technical and Vocational Education and Training (TVET) students (Malaysia Ministry of Education, 2015). TVET providers in private sectors and public sectors across ministries and agencies thus require strategic decisions and address the emerging labour market by achieving the national targets by 2025.

1.1 Industries Collaboration in Technical and Vocational Education and Training (TVET) Institutions

Technical and Vocational Education and Training (TVET) institutions may take collaboration efforts because of differing agendas. The most notable highlight to assure collaborative achievement is enhancing research development and commercialisation potentials, upgrading technical skills, minimising demand and supply mismatch, and increase graduate employability (Kamaliah et al., 2018; Raihan, 2014). One of the strategies is to provide TVET education attractive career development and academic progression for TVET graduates.

Strategic collaboration has the ability to bridge the skills gap and technology gap by leading the graduates to possess the relevant skills for industrialisation that are necessary to enhance graduate employability (Ali, Triyono & Koehler, 2020; Kenayathulla, Ahmad & Idris, 2019). Simultaneously, this would reduce the workforce mismatch between supply and demand in various sectors of the economy.

This initiative also offers human capital with competence, competitiveness, and adaptability to the ever-changing work environment. The cooperation aims to address the skills and competency gap among graduates of TVET programmes by aligning their skills with the specific requirements of the industry. The collaboration also allows industries to facilitate an industry-led curriculum to ensure the contents are relevant to various industries’ current technologies. The model in Figure 1 shows that the coordination synergy between institutions and industries is required to produce a productive workforce (Cheong & Lee, 2016; Jee-Peng., 2013). Being a demand and industry-driven institution contributes to economic and social growth by lifting the employees from poverty (Arthur-Mensah & Alagaraja, 2013; Cheong & Lee, 2016).

Figure 1.

The conceptual framework for a system approach to workforce development. Reprinted from “What Matters for Workforce Development: A Framework and Tool for Analysis” by Jee-Peng et al., 2013, SABER Working Paper Series, 6, p. 8. Copyright 2013 by Education Department, Human Development Network, World Bank.