The government must adopt a long-term plan that empowers the ageing population to lead productive post-retirement lives. — AFP
MALAYSIA faces a dual challenge – a rapidly ageing population and the need for dynamic human capital development.
The recent Budget 2024 announcement reflected the government’s priority on developing new talent that are highly skilled and adaptable to a rapidly evolving world.
What challenges does the country face and what are the measures we can take to close the talent gap and drive productivity?
Ageing population: Meeting future demands
Malaysia’s ageing population is growing at an accelerated rate, with over 15% projected to be above 65 by 2050.
This demographic shift has wide-ranging implications, including increased healthcare costs and reduced workforce participation.
To mitigate these challenges, the government must adopt a long-term plan that empowers the ageing population to lead productive post-retirement lives.
Allocation of funds to retrain and upskill vulnerable groups such as the elderly and people with disabilities will help these individuals in seeking gainful employment.
National upskilling programmes, such as the Madani Training Programme initiative by the Human Resource Development Corp (HRD Corp), can be implemented in a way that helps incentivise and encourage businesses to tap into this underutilised talent pool.
Drawing inspiration from international models, Malaysia can consider incentives for hiring and retaining older workers, offering subsidies for training, and modifying workplace infrastructure.
Human capital development: Shaping the workforce of tomorrow
While investments in upskilling is crucial for human capital development, the focus must shift to clearly defined in-demand skills that lead to higher-paying employment.
Ultimately, skill will be the driving force in improving Malaysians’ earning power.
The National Technical and Vocational Education and Training (TVET) Policy is expected to be launched in June 2024, which would address the coordination of TVET education activities between 12 ministries and 1,344 TVET institutions across the country.
Additionally, clarity is needed on the priority sectors, jobs, and skills that Malaysia requires to drive growth and productivity.
The RM6.8bil allocated under Budger 2024 for TVET education is a move in the right direction with a focus on key skills and sustainable jobs, as well as comprehensive development programs that deliver high-value results.
Close attention should also be given to address the earning capacity of lower-income workers. With the rising cost of living, social safety nets alone would be insufficient to ensure that they live out their lives meaningfully and with dignity.
The People’s Income Initiative (IPR) announced by the Economy Ministry are steps in the right direction in running programmes targeted to upskill citizens to command higher incomes.
Ongoing monitoring and governance of such programmes would be crucial to ensure the desired outcomes are achieved over time.
Besides upskilling, another key aspect of improving workforce productivity and income is leveraging technology to create higher-value jobs.
The recently announced Progressive Wage Policy policy outlines upskilling, incentives, and wage uplift for Progressive Wage Employers, but the policy had stopped short of encouraging companies and employers to rethink the jobs within their businesses for increased productivity resulting from upskilling efforts.
Talent attraction and retention: The Millennial and Gen Z perspective
The Deloitte Millennial and Gen Z Survey 2023 underscores the financial stress faced by younger generations, climate change concerns, and the need for skills development and meaningful work.
In today’s interconnected world, public awareness and action have risen sharply on a wide range of social, political, environmental, and economic issues, with individuals feeling an increased sense of empowerment and responsibility to stand up for what they believe in.
More organisations need to recognise and remain committed to creating a workplace culture that empowers and nurtures employee well-being.
This is vital to support their personal development and career aspiration while enabling them to contribute to organisational growth and the nation’s development.
Empowering women’s return to the workforce
Getting Malaysian women back into the workforce involves addressing areas of job flexibility, biased perceptions, and affordable childcare.
Ideally, the work environment should enable women to return to the workforce in a capacity befitting their skills and qualifications with equitable pay.
Recent efforts by the government in pushing for affordable daycare, Career Come Back programmes, and nursery fee subsidies at work are steps in the right direction.
Skills development and training programmes tailored particularly to women should also be emphasised to empower Malaysian women to be up to date with latest industry practices.
Conclusion
As Budget 2024 takes shape, a collaborative, multi-faceted approach is essential to navigate the everchanging human capital landscape effectively while securing the nation’s future prosperity and global competitiveness.
With a budget of RM1.6bil allocated to HRD Corp in 2024, the right measures, taken at the right time and through the right channels, will be essential to drive talent development to meet evolving employer and industry needs.
Lee Yun-Han is human capital consulting director of Deloitte South-East Asia. The views expressed here are the writer’s own.
