In a commentary by Dr Andrew Woon, Senior Lecturer at the School of Business, Monash University Malaysia, he shared a reaction to Budget 2026. He stated, although the overall size of the 2026 Budget is smaller, it is encouraging to see the Madani Government’s continued commitment to transforming Malaysia’s economy through strategic investments in human capital development and future-oriented industries.
A total of RM7.9 billion has been allocated for Technical and Vocational Education and Training (TVET), an increase from RM7.5 billion in 2025. This expansion reflects a clear focus on AI adoption and targeted training in high-growth sectors such as electric vehicles (EVs), semiconductors, and renewable energy, all of which are aligned with the New Industrial Master Plan (NIMP).
The Human Resource Development Corporation (HRD Corp) will further enhance workforce capabilities with a RM3 billion fund, offering three million training opportunities, particularly in high-technology, digital, and energy transition sectors.
Complementing this, the Skills Development Fund Corporation (PTPK) will provide RM650 million in financing, benefiting over 25,000 trainees, especially in NIMP-priority areas like AI, EVs, and semiconductors.
Additionally, the Skills Development Department has been allocated RM34 million to implement the Industry Academy Programme, which aims to train and upskill local talent while reducing reliance on low-skilled foreign labour.
“Together, these measures signal a cohesive national strategy to future-proof Malaysia’s workforce, nurture local expertise, and strengthen the nation’s position in the global digital and green economy,” said Dr Woon.
