1

OPERATIONALISING EDUCATION 2030 :

TOWARDS HUMAN CAPITAL DEVELOPMENTS

AMIR BIN OMAR DIRECTOR HUMAN CAPITAL DEVELOPMENT SECTION ECONOMIC PLANNING UNIT PRIME MINISTER’S DEPARTMENT 23TH AUGUST 2016

27 years of experience in the public sector focusing on human capital

issues include:

• Economic modelling - Economic-wide model on HRD and

labour market

• Forecasting – demography; labour market; and agriculture

sector projection

• Demand side HCD planning – labour market analysis

• Involvement in formulation of economic plan documents

Economic Planning Unit:

- Human Capital Development

- Agriculture Section

Ministry of Human Resources:

- Director of Institute of Labour

Market Analysis and

Information (ILMIA)

Bachelor in Economics &

Administration

(Rural Economics)

University of Malaya, 1986

Post Graduate Diploma

in Economics, University

of Manchester,

United Kingdom,1995

Master of Arts in

Economics,

University of Manchester,

United Kingdom, 1996

Amir Bin Omar

Director

Human Capital Development

Section

Economic Planning Unit

Prime Minister's Department

Tel: 03-8872 5312

Email: amir.omar@epu.gov.my

Technical assistance on HCD planning :

• Sudan - The Long-Term Perspective Plan 2003-2027;

• Saudi Arabia - The Long-Term Strategy 2005-2025;

• Philippines - Region of Mindanao

Experience and Specialisation

Institution

Education

3

Outline Of The Presentation

1. Sustainable Development Goals (SDGs) : Goal 4 Targets

2. Education Sector - An Important Enabler In Producing Quality Human Capital

3. Human Capital Development (HCD) Planning

4. Overview of Malaysia Economy

5. Human Capital Development In The Eleventh Malaysia Plan, 2016-2020

6. Way Forward

Economic Planning

Unit

4

17 Sustainable Development Goals (SDGs) that make up

the Agenda 2030 for sustainable development

Economic Planning

Unit

5

Outline Of The Presentation

1. Sustainable Development Goals (SDGs) : Goal 4 Targets

2. Education Sector - An Important Enabler In Producing Quality Human Capital

3. Human Capital Development (HCD) Planning

4. Overview of Malaysia Economy

5. Human Capital Development In The Eleventh Malaysia Plan, 2016-2020

6. Way Forward

Economic Planning

Unit

6

3rd 4th 2nd 5th 6th 7th 8th 9th 10th

Razak Report

1956

Education

Ordinan 1957

Rahman Talib

Report &

Education Act

1961

Cabinet

Report

1979

New Primary School

Curriculum (KBSR) 1983

Integrated Primary School

Curriculum (KBSR) 1993

National Education Philosophy 1988

1st

Education

Blueprint -

2025

Private Higher Education

Institution Act 1996, National Higher Education

Fund Corporation Act

(PTPTN) 1997

1&2

Share to total DE (Development Expenditure) National Council on Higher

Education Act 1996

HRDF PTPK

SLDN

26% 19%

20%

14%

Merger of

MOE & MOHE

The amount allocated for

education was 3.8% GDP

(2011) and the figure was

higher than OECD countries’

average of 3.4%

7,7605,8124,840

2,15276339131,062

43,295 43,729

20,185

DE (RM mil)

PFI &

2015

8% 8%

16%

7%

10% 13%

RMK 1-10

The landscape of education and training in HCD – allocation & development

Higher

Education

Blueprint -

2025

Economic Planning

Unit

Education Sector - An Important Enabler In Producing

Quality Human Capital

7

Outline Of The Presentation

1. Sustainable Development Goals (SDGs) : Goal 4 Targets

2. Education Sector - An Important Enabler In Producing Quality Human Capital

3. Human Capital Development (HCD) Planning

4. Overview of Malaysia Economy

5. Human Capital Development In The Eleventh Malaysia Plan, 2016-2020

6. Way Forward

Economic Planning

Unit

8

Education & training

Economy

Job creation Population

Labour

force

quantity & quality

Matching the right supply of labour based on industry demand

Training

providers

Economic Planning

Unit

Human Capital Development (HCD) Planning Approach

9

Human Capital Development (HCD) Planning Framework

Economic Growth

by Sector

Factor Intensity

Labour

Supply Labour

Demand

DELIVERY SYSTEM

• Education

• Training

LABOUR MARKET OPERATION

Population

growth + Immigration

Issues

Capital + Labour

• Prices of Labour + Capital

• Industrial Incentives

• Labour Legislation

• Interest rate

• Exchange Rate

Tertiary: • University

• Colleges

• Polytechnics

• TEVT

Education: • Early childhood

• Preschool

• Basic education

• Unemployment

• Wage structure

• Productivity

• Skills requirement

• Mismatch/

Underemployment Stock

Flow

IEO Forecast Model

Labour Force Projection

Labour Market

Approach

HRD CGE Economy

Wide Model

1

2

3

5

4

Population projection

(age-cohort component

method) IEO – input, enrolment and output of education institutions

Skills

training: • ILKA

• ILKS

Manpower Requirement Approach

(MRA) (Elasticity of employment & output by

economic sector )

Tool/model/methodology - projection

Production

Technology

Labour Force

Economic Planning

Unit

10

Secretariat to the Economic

Council

Evaluate & recommend

development programmes &

projects

Undertake economic research &

advise Government on economy

sectors &

regions

socio-economic

development

long & medium term plans

Formulate policies & strategies

Socio-economic Development Planning

NDPC

Economic Council

Cabinet

Government ministries,

agencies & State Governments

Inter Agency

Planning Group

Parliament

Development Planning Machinery

Private

Sector

NDPC - National Development Planning Committee

Bottom up

approach

top down

approach

Main Functions of EPU

A focus on

People

Economy

Economic Planning

Unit

11

Outline Of The Presentation

1. Sustainable Development Goals (SDGs) : Goal 4 Targets

2. Education Sector - An Important Enabler In Producing Quality Human Capital

3. Human Capital Development (HCD) Planning

4. Overview of Malaysia Economy

5. Human Capital Development In The Eleventh Malaysia Plan, 2016-2020

6. Way Forward

Economic Planning

Unit

11MP : Malaysia to reach high-income status in 2020 …

RM27,819 (US$8,636)

RM7,101 (US$2,626)

RM36,937 (US$10,196)

RM54,100 (US$15,690)

GNI per capita (current price)

Note: • World Bank: High Income Country = AS$12,746 (2013) • Based on GDP (2010 = 100)

GNI per capita (PPP)

US$25,780

US$36,310

Note: • Estimated target of high income country = PPP AS$26,600 (2013) • Based on GDP (2010 = 100)

US$19,728

US$7,143

Per Capita Income

7.6x compared to the level of 1990

}

RM25,678 (US$7,285) US$18,733

12

Economic Planning

Unit

GDP growth (% p.a.) / % to GDP*

11MP : GDP is projected to grow 5-6% and is expected to be driven by

productivity …

Note: Based on GDP (2010 = 100)

Potential Output

11MP • GDP* : 5.9% • GDP: 5-6%

GDP growth (% p.a.)

5.3

5.0-6.0

(48.8%)

(21.4%)

(29.8%)

(40.0% kpd

KDNK)

(16.0%)

(44.0% )

13

Economic Planning

Unit

14

Most of the job creation is expected to be in manufacturing &

services sector

Employment by Sector

8

2

0

14

10

16

12

+1.6%

14.8

9.3 (63%)

8.4 (61%)

13.7

2015

0.1 1.3

1.6

0.1

2.6 (17%)

(Mil

pe

rson

)

1.2

2020

2.4 (18%)

1.6

0

600

1,200

800

400

1,000

(RM

Bil)

66

2015

493 (57%)

76

273 (24%)

72

208 (24%)

35

6.0% 1,159

863

60

684 (60%)

54

2020

Agriculture

Mining

Services

Construction

Manufacturing

Construction

Agriculture

Manufacturing

Services

Mining

GDP by Sector Productivity by Sector

120,000

105,000

90,000

30,000

15,000

0

2015

(RM

/wo

rke

r)

2020

Services

Manufacturing

Agriculture

Construction

Mining

3.6%

9.3%

4.7%

3.4%

3.6%

CAGR 11MP

Economic Planning

Unit

Transformed from an agro-

based to manufacturing and

services-based economy

2 Diversification of export

products from

agricultural to manufactured

goods

1

Changing Structure of the Economy Economic Planning

Unit

Tremendous achievement in

poverty eradication Wealth inequalities has declined

Changing Structure of the Economy Economic Planning

Unit

Half of households remain in low middle-

income group Income Distribution

Lagging productivity level Productivity

Limited fiscal space

Declining comparative advantage

Slow structural transformation

Product

Competitiveness

Structural

Transformation

Fiscal Sustainability

Insufficient high-income jobs and skilled

labour Human Capital

Challenges to be Addressed

Economic Planning

Unit

Outline Of The Presentation

1. Sustainable Development Goals (SDGs) : Goal 4 Targets

2. Education Sector - An Important Enabler In Producing Quality Human Capital

3. Human Capital Development (HCD) Planning

4. Overview of Malaysia Economy

5. Human Capital Development In The Eleventh Malaysia Plan, 2016-2020

6. Way Forward

Economic Planning

Unit

19

Human Capital Development In The Eleventh Plan,

2016-2020

STRATEGIC THRUST 1

STRATEGIC THRUST 6

STRATEGIC THRUST 3

STRATEGIC THRUST 4

STRATEGIC THRUST 2

STRATEGIC THRUST 5

Enhancing inclusiveness towards an equitable society

Improving wellbeing for all

Accelerating human capital development for an advanced

nation

Pursuing green growth for sustainability and resilience

Strengthening infrastructure to support economic

expansion

Re-engineering growth for greater prosperity

Economic Planning

Unit

20

Transforming TVET to meet

industry demand

Strengthening the governance of TVET for better

management

Enhancing quality and delivery of TVET programmes

to improve graduate employability

Rebranding TVET to increase its attractiveness

Strengthening lifelong learning

for skills enhancement

Improving effectiveness of programmes to meet

learning needs

Improving regulatory and funding support

to broaden access

Improving the quality of

education for better

student outcomes and

institutional excellence Enhancing access and quality to improve

student outcomes

Enhancing governance and stakeholder

partnerships for better school support Raising the quality of

graduates and programmes,

and strengthening research

for innovation

Strengthening IHE

governance and financial

sustainability towards

institutional excellence

Improving labour market

efficiency to accelerate

economic growth

Improving labour productivity and wages through

the shift to high skilled jobs

Enhancing labour market operations to maximize

efficiency and effectiveness

Improving management of

foreign workers

Accelerating Human Capital Development

For An Advanced Nation: Focus Area

20

Education &

Higher Education

TVET as game

changer

Economic Planning

Unit

STRATEGIC THRUST 3 :Accelerating human capital

development for an advanced nation. Main strategies and selected outcomes

Improving labour

market efficiency

to accelerate

economic growth

Transforming

TVET to meet

industry demand

Strengthening

lifelong learning

for skills

enhancement

Improving the quality

of education for better

student outcomes and

institutional

excellence

Game Changer

3.7% Labour productivity growth rate per annum

40% Compensation of employees to GDP in 2020

RM2,500 Monthly

median wage in 2020

60% of the 1.5

million jobs that will

be created during

the Eleventh Plan

will require TVET-

related skills

225,000 Intake

of SPM leavers to

TVET programmes

58% Increase in

number of

employees that

will benefit from

expansion of the

HRDF act

To be at least at

par with the

international average in

PISA and TIMSS

assessments

100% Student

enrolment from preschool

to upper secondary

Top 100 2 universities

in Top 100 of the QS

World University Rankings

1 4 3 2

*TVET as catalyst in producing high skilled workers

Economic Planning

Unit

Issues and Challenges in education towards The Eleventh Plan, 2016-2020

Students Outcomes

Enrolment rate

National examinations

International assessments

Teaching and learning

Parental and community

involvement

Governance

Overlapping functions

1 2

Economic Planning

Unit

Outline Of The Presentation

1. Sustainable Development Goals (SDGs) : Goal 4 Targets

2. Education Sector - An Important Enabler In Producing Quality Human Capital

3. Human Capital Development (HCD) Planning

4. Overview of Malaysia Economy

5. Human Capital Development In The Eleventh Malaysia Plan, 2016-2020

6. Way Forward

Economic Planning

Unit

24

Moving Forward:

Focus For The Education System Is To Improve The Quality Of Education

From Preschool To Post Secondary

The education system plays a

crucial role

To supply world class talent

To develop knowledge, skills

and attitudes

Economic Planning

Unit

25

Eleventh Plan, 2016-2020 : Way Forward

12 Initiatives In The Strategy Canvas For Education

Economic Planning

Unit

IHE Programmes

that are irrelevant

to industry

Commercial-

sation of

R&D

26

• More than 60% of job creation under Eleventh Plan require TEVT related qualification

in skilled and semi-skilled jobs categories

• Global trends towards enhancing and recognising TEVT

164k intake in 2013

Accreditation agencies

(MQA, MoE & DSD,

MoHR)

No specialisation

Star rating for private

TEVT institutions

registered with DSD,

MoHR

Limited recognition &

low premium

225k intake by 2020

Single governance body

(Academic & TEVT)

Institutions to specialise in

niche area and creation of

Centre for Excellence

Unified rating system for

Public and Private TEVT

Wider recognition & better

premium establishment of

MBOT

Improving perceptions and

intake of SPM leavers to

TEVT

Identifying TEVT governance

Specialisation of TEVT

institutions

Assessment in institutions

performance

RecognisingTEVT

qualifications

As is To be How

TEVT as GAME CHANGER

Economic Planning

Unit

27

Upgrade student’s knowledge and skills to enable Malaysia be at par with international average in TIMSS and PISA

Increase student’s proficiency in LINUS and ensure every student will be proficient in Bahasa Melayu and English

Increase enrolment for all levels of education

Enhance leadership skills, self-esteem, spirituality and patriotism for more holistic development of students

Strengthen the governance and quality of the education delivery system

1

2

3

4

5

SELECTED NATIONAL OUTCOMES FOR EDUCATION BY 2020

Economic Planning

Unit

28

Mainstream TEVT to provide better access and opportunity

Improve the efficiency and coordination of TEVT governance

Enhance the quality of TEVT teaching staff

Intensify the quality of workforce through continuous education/life-long learning

Promote entrepreneurship among youth through better training and enculturation

6

7

8

9

10

SELECTED NATIONAL OUTCOMES FOR EDUCATION BY 2020

Economic Planning

Unit

29

Conclusion

Economic Planning

Unit

To that end, under the

Eleventh Plan, the

Government ensure

inclusive and equitable

quality education and

promote lifelong learning

opportunities for all.

It enable Malaysia to

achieve high-income

economy that is inclusive

and sustainable by 2020.

AMIR BIN OMAR DIRECTOR

HUMAN CAPITAL DEVELOPMENT SECTION ECONOMIC PLANNING UNIT, PRIME MINISTER’S DEPARTMENT

www.epu.gov.my

Economic Planning Unit, Prime Minister’s Department

www.facebook.com/pages/Unit-Perancang-Ekonomi

Economic Planning

Unit

THANK YOU