This policy report is part of IDEAS’ project entitled Challenges in Hiring and Talent Upskilling in Malaysia as an Upper Middle Income Country: Paving the Way Forward for a Resilient, Skilled Workforce in the Manufacturing and Services Sectors.

Malaysia’s economy is on an upward trajectory to recovery from the effects of COVID-19 pandemic and the freshly elected federal government following the country’s 15th General Election. The World Bank (2021) predicted that Malaysia would soon transition from its current status as an upper-middle-income economy to a high-income economy between 2024 to 2028. The manufacturing and services sectors have always been at the forefront of Malaysia’s economic growth. These sectors are the major contributors for the country’s gross domestic product (GDP)

This policy report discusses the importance of Malaysia’s manufacturing and services sectors towards GDP contribution, employment and trade. This report further examine the challenges in hiring and talent upskilling, including the governance of TVET.

The authors’ provided some key policy recommendations focused on upskilling and reskilling, adopting a holistic approach to education, and encourage better collaboration between skills institutions and industry.