GOVT TO REFORM EDUCATION SYSTEM TO BOOST TALENT

KUALA LUMPUR: The government will review the education system to produce talent needed for an advanced nation and also offer perks to lure home highly-skilled Malaysians and retain global talent to develop a quality workforce.
At the same time, it will reduce reliance on cheap unskilled foreign labour by imposing equal labour standards for local and foreign labour and a levy for unskilled foreigners in line with sector needs.
These are among measures outlined in Part One of the New Economic Model (NEM) unveiled by Prime Minister Datuk Seri Najib Tun Razak Tuesday.
The NEM sounds a blunt warning that Malaysia's human capital is reaching a "critical stage" because of a lack of talent development, rapidly rising migration of skilled Malaysians and declining numbers of expatriates coming here.
Stressing that people are the most valuable asset in a fiercely competitive globalised world, the NEM says Malaysia must retain and attract talent to compete on a regional and global scale.
"Malaysia must be seen by its people and others as a land of equal opportunity to earn a good living and provide a secure, happy life for each individual and the family," it says.
It notes that 80% of the local workforce are only educated up to Sijil Pelajaran Malaysia and complaints of inadequate creativity and English proficiency are among the top obstacles faced by companies, according to a study on Malaysia's investment climate.
Among the measures proposed by NEM are:
* review the education system to shift from rote learning to creative and critical thinking;
* increase emphasis on reintroducing technical and vocational training colleges;
* enhance English language proficency;
* deliver high-quality education within reach of all localities;
* upgrade skills of the Malaysian workforce with continuing education and training;
* establish a safety net for displaced workers;
* formalise international quality standards and skills certification;
* allow wage levels to be reflective of skill level;
* review existing programmes to attract highly-skilled Malaysians to return home;
* offer permanent residence for ex-Malaysians and their families;
* centralised oversight of foreign labour and expatriates to enable coherent practice; and
* simpler work permit and immigration procedures.
The NEM says greater use of foreign talent will increase the demand for Malaysians to upgrade their skills, while the ensuing combination of global and domestic talent will generate higher production and lead to more robust wage raise.
"Another barrier that has to be addressed is the regulation of professional associations which prohibit domestic employment of foreign professionals.
"This is a critical issue since Malaysia's policies are unusually restrictive compared with other East Asian countries.
“Without substantial inflows of foreign talent, firms do not have the incentive to move up the value chain but still have to cope with wage cost pressures," it says.
To remove labour market distortions that hinder wage growth, the NEM suggests the revision of the legislation and institutional framework for hiring and firing practices.
Workers, not jobs, should be protected through a stronger safety net and a labour market flexibility should be encouraged while pay rise should be based on productivity and not regulation. - Bernama
The Star Online – 30 March 2009

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