PETALING JAYA: The Technical and Vocational Education and Training (TVET) sector will receive an increased allocation of RM7.5bil under Budget 2025.
Last year, the sector received RM6.8bil.
Prime Minister Datuk Seri Anwar Ibrahim said the focus will be on fostering collaboration with industries and creating opportunities for poor or marginalised youth and groups that would also benefit the community at large.
Anwar, in tabling the 2025 Budget in Dewan Rakyat on Friday (Oct 18), said RM100mil has been allocated for public universities to implement the Madani ‘Adopted Village' programme.
The programme will also see TVET institutions providing services like home repairs and electrical wiring to the community.
The Finance Minister also said that the government is increasing the TVET education per capita grant (PCG) rate by 15%, bringing the total PCG allocation to over RM900mil.
A grant of RM50mil has also been set aside to encourage more industries to participate in the public skills training institutions (ILKA) foster child programme.
In addition, he announced that government-linked companies (GLCs) will lead the development of new skill training programmes for their respective industries such as TNB (energy transition) and SD Guthrie (mechanisation and automation of plantations).
The Prime Minister also said that companies will receive tax deductions for new equipment and machinery donated to registered ILKA’s, polytechnics, or vocational colleges, starting from the 2025 tax year until 2027.
He also announced that employers will be allowed to use up to 50% of their HRDCorp funds, compared to the current 30%, to cover the cost of skill training facilities, including equipment and facility upgrades.
Employers hiring persons with disabilities (OKU) or ex-convicts will be eligible for a RM600 monthly incentive for three months managed by PERKESO.
RM1.2bil was also set aside for vocational colleges and technical secondary schools will continue to provide education to 77,000 students
Additionally, he announced that Skills Development Fund Corporation (PTPK) will provide financing up to RM500mil to benefit more than 20,000 trainees, with RM100mil dedicated to New Industrial Master Plan (NIMP) priority sectors like MRO, EV, aerospace, and artificial intelligence (AI).
He also said HRDCorp will use RM3bil in funds to offer 3mil training opportunities. It will also set aside 15% of the levy collection for the MADANI Training Programme, focusing on vulnerable groups, he added.
He also announced that employers are allowed to use levies to cover up to RM1,000 in allowances per graduate for one year through HRD Corp, including skills training.
Additionally, Khazanah will allocate RM200mil through its Youth Development Programme (K-Youth) to prepare 11,000 local talents for key sectors like semiconductors.
He also announced that GiatMARA and community colleges will receive RM55mil over five years to equip 10,000 huffaz students from tahfiz and pondok institutions with skills training.
GiatMARA will provide short-term training for more than 3,000 gig workers, he added.
Anwar also said that there will be a double deduction on expenses for companies implementing the MySIP Structured Training Program under Talent Corp, extending it to students in structured training conducted by industry regulatory bodies, until the 2030 tax year.
PERKESO will also build an advanced rehabilitation centre in Terengganu costing nearly RM600 million. This centre will offer comprehensive services, from rehabilitation to return-to-work programmes, strengthening efforts to create a more resilient and inclusive workforce, he added.
