Govt committed to upskilling workers, says Sim
Sim said Malaysia must move away from the low-wage economic model and instead attract high-value industries that can offer better-paying jobs for local talent.
"We are in a race to catch up on lost time, lost opportunities and missed progress. And indeed, when I was appointed as the minister responsible for human resources, one of the things that keeps me up at night is workers' wages.
"I want our workers to receive wages that truly reflect the value of their work. But I also recognise that wages are not determined solely by the generosity of employers or the skills of workers," he said at the launch of the P10X Academy here today.
He said that while wages were often viewed as the responsibility of employers or tied to workers' competency, the deeper challenge lies in the country's overall economic structure.
"If the majority of our workers remain in traditional sectors such as agriculture or low-skilled manufacturing, naturally, wages will remain low."
He also said Malaysia has been caught in the middle-income trap since the 1990s and must now transition towards high-value industries such as semiconductors, consulting, and advanced engineering in order to break through.
To support this, Sim said the government was actively courting strategic investments from global tech giants, including Microsoft and Google, which could create high-quality jobs for Malaysians.
"These are not just local companies, they are defining how the world uses the Internet and mobile technology. Together with local firms and government support, they can lift us up the value chain."
He said this was aligned with the Madani Economy framework introduced by Prime Minister Datuk Seri Anwar Ibrahim, which aims to "raise the ceiling" by increasing the value of economic output, and "raise the floor" by improving workers' wellbeing.
"We cannot allow companies to rake in millions while underpaying workers or ignoring minimum wage laws. Workers must be properly compensated."
Sim said the ministry was focused on three strategic priorities: improving workers' welfare, upgrading skills, and boosting productivity, which he referred to as the "3Ks" under the broader objective of "karamah insaniah" (human dignity).
"Our goal is for every worker to go to work with dignity, be fairly paid, and return home safely."
Among the initiatives introduced is the UP_TVET portal, which centralises applications to more than 600 public and private TVET institutions. The portal has received over 140,000 applications to date.
He said the ministry had also reduced the certificate processing time for national skills accreditation from two months to two weeks, with a target of just one day in the future.
To elevate the standing of technical education, he said the government was amending the National Skills Development Act (Act 652) to include Levels 6, 7, and 8, making TVET qualifications equivalent to those of a bachelor's, master's, and even PhD levels.
"We want to make it clear that TVET is not a second-class option. It is a viable and prestigious pathway to career success and national development."
He added that skilled Malaysian workers were increasingly in demand, especially those with certified technical qualifications.
"This is why we are investing over RM10 billion this year in education and skills training. If we want high-value jobs, we must build high-value people."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
an hour ago
- The Star
Long-term effects of stimulus unclear
PETALING JAYA: The goodies announced by Prime Minister Datuk Seri Anwar Ibrahim, including the RM100 cash transfers to Malaysians above 18 years of age and the lowering of RON95 petrol price, will spur economic activity although the long-term effects remain uncertain, say economists. They opined that the measures, while likely to be offset by tax reforms, subsidy rationalisation and revenue enhancement measures, might pose certain risks to the government's fiscal position. Economist Doris Liew, who specialises in South-East Asian development, said the removal of fuel subsidies, long seen as necessary for structural reform, has faced significant political resistance. 'The lowering of RON95 prices is less about sustainable economic management and more about short-term populism. 'For Anwar, who has pledged a path of fiscal consolidation with the ambitious goal of reducing the fiscal deficit to below 3% of gross domestic product (GDP), this move appears inconsistent and politically expedient,' she opined. She cautioned that the implications of the decision were many while the tangible benefits were limited. 'First, the actual reduction in the cost of living for households will likely be marginal, particularly when weighed against the long-term fiscal cost. 'Second, it undermines Malaysia's broader ambition to transition towards electric vehicles. 'Artificially suppressing petrol prices will only deepen the public's dependence on fossil fuel vehicles and weakens incentives for cleaner alternatives,' she told StarBiz. Thirdly, the move risked a steep increase in subsidy-related expenditure over time, according to Liew observed that in 2022, fuel subsidies amounted to RM52bil, equivalent to 74% of all government subsidies. Although global oil prices have declined recently, she said projections indicated a potential rebound by 2026, which could place renewed and unsustainable pressure on public finances. Nevertheless, she said to the government's credit, several revenue-enhancing initiatives have been introduced this year, including the expansion of the sales and service tax (SST), the implementation of the global minimum tax starting January and the increase in the minimum wage, which could help increase income tax collections. However, the continued reliance on broad-based subsidies remains a cause for concern, she said, as fuel subsidies in particular, are a fiscal black hole. 'Once reinstated or increased, they become politically difficult to scale back, even when economically unsound,' she said. Commenting on the RM100 cash transfers, Liew said they might offer modest relief for low-income households, but would do little to fundamentally improve welfare or address structural inequalities. Of interest, economist Geoffrey Williams opined that the cash handout was a good initiative, viewing it as a pilot for reform of the Sumbangan Tunai Rahmah/Sumbangan Asas Rahmah programme to create a possible universal basic income (UBI), which would be a first in the world and set Malaysia as a leader in welfare reform. 'It has all of the features of a UBI because it is a cash transfer to individuals, not households, without any conditions and available universally to all Malaysians without the need to apply. 'For the moment, it is a one-off payment but it will provide useful lessons to become a regular monthly payment so that Malaysia would be the first country to have a full UBI which would be part of Anwar's legacy,' he said. Noting that the cash handout is affordable under the subsidy rationalisation savings, he said it would add consumption to the economy in the second half of the year to support economic growth especially for the low-income group as the money would be spent in local shops and communities. While noting that the cash transfer could cost the government RM2bil, Williams reckoned that the initiative would have an impact of RM6bil due to its multiplier effect. According to him, the cash transfer will not impact the government's fiscal position because it is essentially a transfer of money from one use to another. He added: 'If it supports growth, then the GDP will be higher than 4% and this helps the push towards debt and deficit ratio push targets. The funds come from subsidy rationalisation savings so development expenditure is not affected.' On the other hand, he said the small reduction from RM2.05 to below RM1.99 per litre of the RON95 fuel would be 'only marginally' helpful for boosting the economy and the subsidy rationalisation is not primarily intended to cut daily lifestyle expenses, but to reduce wasteful subsidy costs. 'The cut is very small, and so it will have a negligible impact on fuel use,' he said. Meanwhile, Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid likend the measures to a mini fiscal stimulus as the country is facing heightened economic uncertainties brought on by US tariffs and ongoing geopolitical risks. 'We have seen Bank Negara cutting the overnight policy rate by 25 basis points this month. So, it clearly shows that Keynesian economics prescriptions are at work now,' he said. Keynesian economic policies, first developed by British economist John Maynard Keynes in 1936, advocate for government intervention to stabilise or mobilise the economy when it is facing risks of a downturn. Mohd Afzanizam highlighted the fiscal consolidation exercises that had been ongoing since last year, including the SST increase by two percentage points and the diesel subsidies that had been rationalised, allowed a fiscal space to be established. 'The government is using this space to spend in order to grow the aggregate demand,' he added.
The Star
4 hours ago
- The Star
Digital payments to surge in Malaysia
KUALA LUMPUR, July 23 (Xinhua) -- Digital payment adoption is set to surge in Malaysia, with more consumers likely to use emerging digital payment methods in the next year, a new research conducted by Mastercard showed. The research, which surveyed consumers across the globe on payment preferences, has found that some 63 percent of Malaysian consumers prefer using new and innovative methods such as Tap & Go mobile payments, biometric payments, QR codes and mobile wallets, over traditional methods like cash or manual card entry, reflecting a widespread appetite for innovation. The research showed that Malaysian consumers are among the most enthusiastic to embrace payment innovation, as 93 percent are likely to use five or more payment methods in the next 12 months. While cash is still Malaysia's most used payment method, 70 percent of consumers used it in the last year, narrowly edging out QR code payments with 64 percent, usage of digital payment methods is set to rise in the next year. This preference for innovation applies to other emerging technologies as well, with 89 percent of Malaysian consumers saying they are keen to use artificial intelligence (AI) to manage their finances, particularly for fraud detection, payment automation, product personalization, and predicting financial outcomes. Meanwhile, as payment options grow, consumers are seeking hyper-convenient ways to manage money that fit seamlessly with their digital usage habits, the research revealed. It highlighted they want flexibility to customize how they pay, tapping into digitally native methods like peer-to-peer or peer-to-merchant payments, QR codes, wearables, and social commerce. "These findings reaffirm that the digital evolution in payments has firmly taken center stage in Malaysia. With digital-first and mobile-first lifestyles shaping consumer behavior, innovation and security in payments will be key to sustaining this momentum," said Beena Pothen, country manager of Malaysia & Brunei at Mastercard.
Malaysia Sun
5 hours ago
- Malaysia Sun
SharePoint flaw exploited in hacks on agencies, firms: Microsoft
WASHINGTON, D.C.: Microsoft has warned of active cyberattacks targeting a widely used server software that allows businesses and government agencies to share documents internally. The company urged customers to apply critical security updates immediately to avoid exploitation. The software under attack is Microsoft's on-premise SharePoint Server, which is commonly deployed by organizations that manage their infrastructure. Microsoft clarified that its cloud-based SharePoint Online service within Microsoft 365 is not affected. In a security advisory issued on July 19, the company described the threat as a "zero-day" attack, referring to the exploitation of a previously unknown software flaw. According to experts cited by The Washington Post, which first reported the breach, the flaw has been used in recent days to launch cyberattacks against U.S. and international government agencies and businesses. Tens of thousands of servers may be vulnerable. "We've been coordinating closely with CISA, DOD Cyber Defense Command, and key cybersecurity partners globally throughout our response," a Microsoft spokesperson said. "Security updates have been issued and customers should install them immediately." The vulnerability allows an attacker with network access to perform "spoofing"—a type of deception in which a malicious actor impersonates a trusted entity. This technique can be used to manipulate systems, financial markets, or internal communications by masking the source of malicious activity. The FBI confirmed over the weekend that it is aware of the ongoing attacks and is working with federal agencies and private-sector partners to investigate, though it provided no further details. Microsoft said it is developing updates specifically for the 2016 and 2019 versions of SharePoint. Until those fixes are available, customers unable to implement Microsoft's recommended security configurations should consider disconnecting affected servers from the internet to limit exposure. Spoofing attacks can be hazardous in environments like government networks or financial institutions, where trust in digital communications is paramount. Microsoft has provided detailed mitigation instructions for system administrators to secure their environments while patches are rolled out. This incident is the latest in a string of cyber threats affecting critical infrastructure and enterprise tools. These often involve sophisticated attackers exploiting unpatched vulnerabilities before companies are aware they exist.
