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REPORT<br />

_____________________________________________<br />

REGIONAL INDUSTRY DIALOGUE 2010<br />

“SEMI PROFESSIONAL MANPOWER DEVELOPMENT<br />

IN SABAH”<br />

Date : 13th May 2010<br />

Time : 10.30 am – 1.00 pm<br />

Venue : Promenade Hotel, Kota Kinabalu, Sabah<br />

Chairman :<br />

Y.Bhg. Dato’ Hj. Imran bin Idris<br />

Director General<br />

Department of Polytechnic Education<br />

Ministry of Higher Education<br />

ORGANISED BY :<br />

THE DEPARTMENT OF POLYTECHNIC EDUCATION<br />

MINISTRY OF HIGHER EDUCATION MALAYSIA<br />

1


TABLE OF CONTENTS<br />

Contents<br />

Page<br />

EXECUTIVE SUMMARY 3<br />

PREFACE 6<br />

PROCEEDINGS : 6<br />

Keynote Address : Collaborating for Workforce Capacity Building –<br />

Engaging Industries<br />

Y.Bhg. Dato’ Hj. Imran bin Idris<br />

Director General, DPE<br />

Presentation : Sabah Development Corridor : Needs and Perspectives<br />

Ms. Janiah Zaini<br />

Assistant Vice-President, Sabah Economic Development<br />

& Investment Authority (SEDIA)<br />

QUESTION & ANSWER SESSION 9<br />

CONCLUDING REMARKS 14<br />

2


EXECUTIVE SUMMARY<br />

The 2010 Luncheon Dialogue, themed “Semi Professional Manpower Development in<br />

Sabah” is the first luncheon dialogue, organized <strong>by</strong> the Department of Polytechnic<br />

Education (DPE), Ministry of Higher Education (MoHE).<br />

This regional dialogue has a two-fold objective. First, to enable DPE to gain better<br />

understanding and grasp of the needs of industries nationwide. The input will be used<br />

for developing and reviewing the polytechnic curriculum and training programs to<br />

ensure the right match between workforce produced and industry needs. Secondly, to<br />

enhance existing industry-institution collaboration in Sabah.<br />

The Director General, in his keynote address, reiterated the importance of strong<br />

academia industrial ties to enable polytechnics to produce graduates capable of<br />

meeting the challenges in the job market. His keynote address, “Collaborating for<br />

Workforce Capacity Building – Engaging Industries”, provided an overview of the<br />

Technical and Vocational Education Training (TVET) system in Malaysia followed <strong>by</strong><br />

programs available at polytechnics. DPE’s Collaboration Model which has produced<br />

several desired outcomes were highlighted. Amongst the desired outcomes mentioned<br />

were the Industry Advisory Committee, the Employability Advisory Committee, the 1-<br />

STOP Corporate Industry Services & Employment Centre (CISEC), the Annual National<br />

Industry Dialogues, special focus group discussions, knowledge sharing <strong>by</strong> guest<br />

lecturers from foreign universities, overwhelming response from industries for staff and<br />

student’s industrial placement and signing of MoUs with well-known local and<br />

international companies.<br />

The Assistant Vice President of the Sabah Economic Development & Investment<br />

Authority (SEDIA) spoke on “The Sabah Development Corridor (SDC) : Needs and<br />

Perspectives”, touching on strategies in the SDC’s blueprint to turn Sabah into a high<br />

3


value manufacturing and services centre through rapid development in agriculture,<br />

tourism, manufacturing and logistics. The presentation also showed how SDC’s<br />

strategic development thrusts in the four areas will enhance human capital<br />

development, move Sabah up the value chain, reduce regional imbalances and<br />

increase participation in the K-economy. The presentation also showed how the goals,<br />

characteristics and strategic reform initiatives contained in the New Economic Model<br />

(NEM) will help Sabah deal with the challenges posed <strong>by</strong> the nation’s current economic<br />

slowdown. The last part of her presentation touched on the importance of quality<br />

education and training to produce a creative and critical workforce. This, together with<br />

an industry driven curriculum, upgrading of skills in line with market needs and<br />

availability of short technical and vocational programs for the non-academically inclined<br />

were pointed out as strategies for moving forward.<br />

The issues raised in the Question and Answer session can be categorized into three<br />

main categories : labor, curriculum/programs and outline perspectives contained in the<br />

SDC.<br />

Labor<br />

The acute labor shortage in the timber and oil palm industry is the result of paradigm<br />

changes which have taken place in these industries, which demand new skills from the<br />

existing workforce. These challenges have been further aggravated <strong>by</strong> an over<br />

dependence on foreign labor. These challenges brought to light the importance of<br />

having in place mechanisms suitable for different sectors of the industry which will<br />

ensure smooth adjustments in the labor market.<br />

Curriculum/programs<br />

Positive response received from participating industries to work together to further<br />

enhance the curriculum, especially training of skilled manpower in the oil palm industry<br />

in the three critical areas – mechanical, bio-technology and agriculture technology.<br />

Other suggestions include incorporating coal fire technology in the finishing school<br />

program, having work-based learning programs to overcome the cost and time<br />

4


constraints of developing new curriculum. Concern was expressed over the phasing out<br />

of polytechnic certificate level programs.<br />

Outline perspectives in the SDC<br />

The main concerns were related to challenges faced in achieving the desired outcomes<br />

given the present economic slowdown and availability of grants for young<br />

entrepreneurs.<br />

A Dialogue Survey was carried out during the Regional Dialogue Industry. 91.8% of<br />

industry participants responded to the survey. The findings revealed that 87.5% of the<br />

respondents were interested to collaborate with DPE in the following areas : students’<br />

industrial training, conducting short term courses, giving career talks, sharing their<br />

expertise for curriculum development, industrial placements for polytechnic staff,<br />

students’ final semester project, become guest lecturers and advisory committee<br />

members, presentation of papers at seminars and conferences. 37.5% responded that<br />

they already have polytechnic graduates working in their organizations and are highly<br />

satisfied with their performance and attitude (integrity, quality of work, teamwork and<br />

overall performance). However, there was still room for improvement in the<br />

communications area.<br />

The issues raised during the Question & Answer session and the findings of the<br />

dialogue survey call for the following course of action :<br />

♦<br />

♦<br />

♦<br />

Further institution-industry networking<br />

Curriculum development that caters to the developments in the timber and<br />

palm oil industries in Sabah.<br />

Working closely with industries to ensure skills of workforce match industries’<br />

requirements, improving student employability.<br />

5


PREFACE<br />

The 2010 Regional Industry Dialogue, themed “Semi Professional Manpower<br />

Development in Sabah”, is the first to be held in Sabah. The dialogue, organized <strong>by</strong> the<br />

Department of Polytechnic Education, Ministry of Higher Education, is aimed at<br />

enhancing existing ties with the industries as well as obtaining a better understanding of<br />

the skills needed <strong>by</strong> the industries nationwide to ensure the correct match between<br />

workforce produced <strong>by</strong> polytechnics and needs of the industries.<br />

61 participants from 55 organizations and 43 senior officers from the Ministry of Higher<br />

Education and polytechnics attended the dialogue.<br />

PROCEEDINGS<br />

KEYNOTE ADDRESS : Collaborating for Workforce Capacity Building –<br />

Engaging Industries<br />

Presenter<br />

: Y.Bhg. Dato’ Hj. Imran Bin Idris<br />

Director General, DPE<br />

The Director General highlighted the importance of strong academia industrial ties to<br />

enable polytechnics to have a good understanding of the type of skills required <strong>by</strong> the<br />

industries in this very FIRST Luncheon Dialogue held in Sabah. Dialogues from such<br />

ties will provide invaluable input for the development of an industry-relevant curriculum,<br />

introduction of industry-driven programs, preventing mismatches between needs of<br />

industries and workforce produced <strong>by</strong> institutions.<br />

The Director General proceeded to present an overview of the Technical and Vocational<br />

Education Training (TVET) system in Malaysia followed <strong>by</strong> the programs available at<br />

polytechnics.<br />

He further elaborated on DPE’s Collaboration Model which comprises three main areas<br />

– Industry Input, Industry-Institution and Institution Output. The importance of gathering<br />

input for curriculum development through meetings with its Industry Advisory Committee<br />

6


(IAC) was mentioned. The IAC, made up of industry captains from various sectors of<br />

the industry, is established at both institutional as well as departmental levels. The<br />

Director General also pointed out that the four national annual industry dialogues have<br />

provided an invaluable platform to gather input for curriculum and workforce<br />

development. The practice of having small focus groups, comprising industry experts to<br />

deliberate on specific issues, as in the recent Round-Table Discussion on the 2010<br />

Polytechnic Transformation Plan, was also highlighted. The keynote address also<br />

showed that DPE’s industrial linkages have resulted in guest lecturers from foreign<br />

universities sharing their expertise in a number of Professional Tea Talks and Logistics<br />

Seminars.<br />

The address also drew participants’ attention to various collaborations between DPE<br />

and its institutions which have greatly benefitted both staff and students of the<br />

polytechnics. 8200 companies/agencies have come forward and offered places for<br />

industrial attachment for 37,300 polytechnic students. Polytechnic staff have also<br />

benefited from these industrial linkages. 63 of polytechnic staff were attached to 60<br />

firms in 2009. Industries have benefitted through customized training programs<br />

designed specially for their staff. MoUs signed with local as well as international names<br />

such as Malaysian Airlines System, CISCO, Faber, NGV Tech SDN BHD, Siemens,<br />

MAH Kedah/Perlis were also highlighted. The Director General also made special<br />

mention of Proton - DPE’s partner in work-based learning. Other developments under<br />

Institution Output highlighted plans for establishing the Employability Advisory<br />

Committee and a 1–STOP Corporate Industry Services & Employment Centre (CISEC)<br />

where institutions and industries can work together to enhance workforce capacity<br />

building.<br />

The Director General concluded his keynote address <strong>by</strong> stating that polytechnics have<br />

the potential to become regional TVET institutions with the capacity to produce<br />

graduates with the required certifications for various sectors. In a nutshell, this dialogue<br />

is the best platform to engage institution-industry’s commitment in a two-way<br />

relationship for mutual benefits.<br />

7


Presentation : Sabah Development Corridor : Needs and Perspectives<br />

Presenter : Ms. Janiah Zaini<br />

Assistant Vice President -Sabah Economic Development &<br />

Investment Authority (SEDIA)<br />

Ms. Janiah Zaini gave an overview of the SDC blueprint, the impact on human capital<br />

needs, challenges faced and the way forward in her presentation on the “Sabah<br />

Development Corridor : Needs and Perspectives”.<br />

The presentation revealed strategies in the SDC Blueprint to turn Sabah into a high<br />

value manufacturing and services centre <strong>by</strong> leveraging on Sabah’s strength in<br />

agriculture, tourism and natural resources within the time-frame from 2008 -2025. The<br />

presentation pointed out that the first stage of development will focus on infra-structure<br />

building and high economic impact and poverty eradication projects, followed <strong>by</strong> higher<br />

order value added activities to accelerate growth and attract foreign direct investments.<br />

The second part of the presentation which dealt with the impact on human capital needs<br />

elaborated on the direction of the agenda and SDC’s strategic development thrusts.<br />

The areas earmarked for development are agriculture, tourism, manufacturing and<br />

logistics. The expected outcomes of these developmental thrusts are the enhancement<br />

of human capital, moving Sabah up the value chain, reducing regional imbalances and<br />

increased participation in the K-economy.<br />

The third part touched on challenges faced given the country’s economic slowdown. It<br />

also provided information on the goals, characteristics and strategic reform initiatives<br />

contained in The New Economic Model. The presentation highlighted the importance of<br />

developing a quality workforce through quality education while simultaneously reducing<br />

the dependency on foreign labor as a strong talent base will improve productivity and<br />

provide the foundation for sustained economic growth.<br />

8


The last part of the presentation shared pointers on the way forward. The importance<br />

of quality education and training which prioritizes growth and the production of a<br />

creative and critical workforce, an industry driven curriculum, upgrading one’s skills and<br />

the provision of short technical and vocational programs for the non-academically<br />

inclined were cited as strategies for the way forward.<br />

QUESTION & ANSWER SESSION<br />

Panelists : -<br />

1) Y.Bhg. Dato’ Haji Imran bin Idris<br />

Director General, DPE<br />

2) Ms Janiah Zaini<br />

Assistant Vice-President<br />

Sabah Economic Development & Investment Authority<br />

(SEDIA)<br />

3) Y.Bhg. Datuk Ir. Chong Hon Lee<br />

Chief Executive Officer KKIP Sdn. Bhd.<br />

Question 1 : Mr Fong Ming San – Sabah Timber Industry Association<br />

Much emphasis has been given to downstream activities and clusters in KKIP. Special<br />

attention should be given to downstream activities in tree plantation. The set skills and<br />

the type of skilled personnel needed for tree plantation are quite different from the skills<br />

required in traditional planting which just involves cutting the trees and transporting to<br />

the mills. In tree plantation, the whole process, starting from clearing the forests,<br />

planting the trees, field culture, harvesting, transporting and finally back to the mills, has<br />

to be carefully planned. Statistics indicate that there is an acute shortage of skilled<br />

personnel to deal with the paradigm changes that has taken place in the planting and<br />

agriculture industries. It is hoped that our input regarding the critical shortage of<br />

personnel with the required skills would be addressed as soon as possible. It should<br />

also be noted that we appreciate this opportunity to provide input for curriculum<br />

development and review as tree planting is envisaged to become the next major supply<br />

of the raw materials for the timber industry.<br />

Response : Y.Bhg. Dato’ Haji Imran<br />

The suggestion will be noted. <strong>Politeknik</strong> Sandakan will address the issues mentioned.<br />

As mentioned earlier to Datuk Chong, today’s session is a networking session,<br />

providing a platform for DPE and its institutions to know the needs of the industries<br />

9


efore coming out with more detailed and concrete arrangements which would benefit<br />

both parties.<br />

Question 2 : Mr Ismail Salkilan – Sawit Kinabalu<br />

Noticed that there are no provisions in the polytechnic curriculum to train skilled<br />

personnel to work in the oil palm industry even though Sabah has the largest oil palm<br />

plantation in Malaysia. The Sabah oil palm industry is facing a number of challenges as<br />

a result of labour shortage due to the high turnover rate and difficulty in recruiting<br />

resources with the right agricultural background. To solve this problem, Sawit Kinabalu<br />

has started some collaboration with UMS especially in the area of management and<br />

milling technology. Sabah is expecting a new quantum leap into downstreaming eg. the<br />

development of POIC in Lahad Datu and Sandakan which is adjacent to the education<br />

hub. Sandakan will be an important area for regional development. It is hoped that<br />

<strong>Politeknik</strong> Sandakan will be able to support POIC in terms of producing the required<br />

human resources as well as help the industry in its downstreaming activities - in<br />

mechanical, bio-tech or agri-tech as these are the present critical areas. Sawit Kinabalu<br />

will be spearheading the SDC project <strong>by</strong> SEDIA. <strong>Politeknik</strong> Sandakan should be a part<br />

of this project so as to support the oil palm industry. The polytechnic can collaborate<br />

with MPOV for example, in R&D and commercialization. This will help overcome the<br />

potential crisis faced <strong>by</strong> Malaysia’s over reliance on foreign workers.<br />

Response : Y.Bhg. Dato Haji Imran bin Idris<br />

Polytechnics will be focusing more on the supply of workforce to cater to downstream<br />

activities. An effective way to expedite the introduction of new programs is to work<br />

together with a company/companies that can provide the infrastructure. Polytechnics<br />

will oversee the curriculum design, the theoretical aspects as well as the basic lab<br />

experiences while companies should be ready to provide the industrial experience for<br />

these students. <strong>Politeknik</strong> Kota Kinabalu will discuss with Sawit Kinabalu to come up<br />

with a draft to address needs of the palm oil industry.<br />

Question 3 : Datuk Ag Buhtaman Ag Mahmun – Dewan Perniagaan Melayu<br />

Economic development spearheaded <strong>by</strong> SEDIA requires a steady supply of both<br />

professional and semi professional skilled manpower from many disciplines, ranging<br />

from tourism to manufacturing. It would be unfair to expect polytechnics alone to solve<br />

the issues pertaining to fulfilling the human resource requirements of the industries. A<br />

more feasible alternative is to look into existing programs available at the polytechnics<br />

and see how best to collaborate with appropriate industries to ensure a supply of the<br />

required manpower.<br />

The New Economic Model consists of plans for (a) increasing the per capita income of<br />

the population at large (b) inclusiveness and equal distribution of growth and (c)<br />

sustainability. Some clarification is needed concerning the issue of increasing the per<br />

capita income of the people of Sabah to RM14,784 <strong>by</strong> 2025. It is stated in the New<br />

Economic Model that the existing average per capita income be increased to RM49,500<br />

10


y 2025. If that is the case, the target is still short of more than RM30,000 and this<br />

issue needs to be addressed. Given the current economic slowdown in Malaysia, what<br />

are the strategies that will be deployed to achieve the target of RM 49,500 per capita<br />

income <strong>by</strong> 2025.<br />

Industries appear to be in a dilemma as to the type of recognition to be given to<br />

polytechnic graduates. Polytechnic graduates who are diploma holders are classified<br />

as middle level semi-professionals. However, their education and training have<br />

equipped them with skills and knowledge above the requirements of middle level semiprofessionals,<br />

but they cannot be recognized as engineers.<br />

It would appear that work-based learning is a good place to start institution-industry<br />

collaboration to overcome the high cost and time-constraint of developing a new<br />

curriculum to meet pressing needs of the industries.<br />

Response: Ms Janiah Zaini<br />

Confident that plans to increase the existing average per capita income from RM23,100<br />

to RM49,500 <strong>by</strong> 2025 is achievable in the light of the special emphasis given <strong>by</strong> SDC,<br />

the strategic initiatives pursued <strong>by</strong> the government to reform the workforce and the<br />

national agenda to move the country from the middle income to a higher income country<br />

<strong>by</strong> 2025. Economic experts, in a recent briefing, explained that the economy only<br />

needs to grow <strong>by</strong> 6% yearly to achieve this objective.<br />

Response: Y.Bhg. Dato Haji Imran bin Idris<br />

Polytechnics are not in a position to address all problems related to shortage of skilled<br />

manpower faced <strong>by</strong> the entire industry as programs in polytechnics are generic in<br />

nature. Our programs try to cater to the needs of various sectors. The concept of<br />

Finishing Schools is our stop gap measure to address the specific skills of a particular<br />

sector of the industry. The Finishing Schools try to bridge the gap between what<br />

industry’s requirements and what is provided in the formal program. Only particular<br />

skills, found to be needed <strong>by</strong> the industry, will be embedded in our formal program.<br />

This strategy is adopted during curriculum is being reviewed, resulting in a more flexible<br />

and dynamic curriculum.<br />

Question 4 : Dr. Zhambree Gulam Rasul - Institut Usahawan Muda<br />

Any grants allocated for young entrepreneurs to participate in SME development<br />

programs?<br />

Response : Ms Janiah Zaini<br />

One of our focus areas is the SME development and we work closely with training<br />

providers such as polytechnics, SIRIM and MARDI. Grants are allocated for skills<br />

training and development of young entrepreneurs.<br />

11


Question 5: Mr Baharuhom K.K Sugon - <strong>Jabatan</strong> Kerja Raya<br />

Is it true that the certificate level programs will be phased out? If so, when will the<br />

exercise commence and who will take up this responsibility of training certificate level<br />

staff?<br />

Is the Diploma level programs equivalent to the Diploma programs offered <strong>by</strong> the local<br />

universities?<br />

Response: Y.Bhg. Dato Haji Imran bin Idris<br />

Polytechnic certificate level programs will be phased out. In fact, starting this year –<br />

2010, polytechnics will no longer take in students for certificate level programs. The last<br />

cohort of polytechnic certificate level students to graduate will be one and a half years<br />

from now. It’s a bit difficult, at this point, to ascertain the training provider for certificate<br />

level programs. However, many other institutions like IKM, ILP and also community<br />

colleges still conduct certificate level programs.<br />

In terms of recognition, our diploma level programs is equivalent to the diploma offered<br />

<strong>by</strong> local universities. However, the approach used in polytechnic diploma level<br />

programs are slightly different from that of universities. Polytechnic diplomas enable<br />

their graduates to be industry ready, able to contribute productively at the workplace<br />

upon graduation. University diplomas, in comparison function as stepping stones to a<br />

degree program. Findings from the Tracer Studies show that the number of polytechnic<br />

diploma students getting employed upon graduation are much higher compared to a<br />

university diploma holder.<br />

Question 6 : Ms Zainurah Abdullah - SESB<br />

Have polytechnics ever considered embedding coal fire technology in their finishing<br />

schools because there is a demand for qualified personnel in this sector.<br />

Response : Y.Bhg. Dato Haji Imran bin Idris<br />

The finishing school is a stop gap measure. It is not possible to change the curriculum<br />

overnight. Only some of the important critical skills that require immediate attention are<br />

picked up and addressed in our finishing schools. However, your concern is noted and<br />

will be discussed during our curriculum development meeting.<br />

Question 7 : Mr Fong Ming San - Sabah Timber Industry Association<br />

Would like to inform participants that at the present moment, the timber sector has not<br />

found a robust matching mechanism where labor is concerned. The timber industry<br />

experience the perennial problem of having a smooth adjustment in the labor market. It<br />

is important to come up with a benchmark to see how well this so called labor market<br />

12


adjustment can be smoothened. It is timely for a robust discussion on the issue of<br />

foreign workers which will be sensitive to the needs of different sectors of the industry,<br />

as mechanisms which bring about change in one industry may not be applicable to<br />

another industry.<br />

Response : Ms Janiah Zaini<br />

We do recognize that benching mechanisms require a holistic approach where<strong>by</strong> all the<br />

departments or ministries or industries have to play their roles. Matching the supply and<br />

demand of our labor force is a difficult task which involves taking a lot of actions. The<br />

dependence on foreign labor is particularly high in the plantation and timber sectors of<br />

Sabah. Open discussions need to be carried out and this is where institutions of higher<br />

learning and industries need to work together to address the mismatch between the<br />

supply and demand of our labor force.<br />

Response : Y.Bhg. Dato Haji Imran bin Idris<br />

DPE welcomes all feedback to enable us to overcome our shortcomings and in the case<br />

of this discussion, we would like to take the opportunity to solicit as much feedback as<br />

possible for the future directions of our programs.<br />

Question 8 : Hj Isa bin Hj Ismail – <strong>Politeknik</strong> Sandakan Sabah<br />

Since polytechnics under MoHE have carried out measures to comply with the needs of<br />

industries at the present moment, can we have an indication of the commitment from<br />

industry, so that both parties can meet halfway and have a win-win situation?<br />

Response : Y.Bhg. Datuk Ir. Chong Hon Len<br />

Basically, polytechnics play an important function here. From what I observe, what is<br />

needed to make our product marketable is to improve the quality of the product required<br />

<strong>by</strong> the industries and polytechnics are doing a good job training quality skilled<br />

manpower in the respective areas.<br />

There is a lack of collaboration between the private sectors and institutions in Sabah.<br />

The NGOs which represent the industries are not well organized as they do not receive<br />

adequate funding. There is an urgent need for closer cooperation between the public<br />

and private sectors. In order to bridge the gap, I would like to see more of this kind of<br />

forum being organized.<br />

13


CONCLUDING REMARKS<br />

Y.Bhg. Dato’ Hj. Imran Bin Idris, Director General, DPE<br />

Y.Bhg. Dato’ Hj. Imran thanked all participants for their support and active participation<br />

in this dialogue. The Director General assured participants that such dialogues would<br />

continue to be held in Sabah in order to foster and establish strong relationships<br />

between the industry and the polytechnic. :<br />

The issues raised during the Question & Answer session will be addressed through :<br />

♦ Further institution-industry networking<br />

♦ Curriculum development that caters to the developments in the timber and<br />

palm oil industries in Sabah.<br />

♦ Working closely with industries to ensure skills of workforce match industries’<br />

requirements, improving student employability.<br />

14

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