Malaysian Government is confronted by two problems; one is how to sustain and to develop the existing export-oriented economic structure, and the other is how to manage the multiracial country.
That economic structure has been made mainly by the foreign direct investments (FDI), especially from Japan. The insentive policies for the foreign company and the low wage costs in Malaysian economy have been the main causes for the investments. But the wage costs have been rising because of the labour shortage occurred by high economic growth in the country. The supply of the skilled labour in the country is generally important to develop the manufacturing sector. On the other hand, the supply of skilled-labours would become the next incentives for FDI. So the Human Resource Development (HRD) policy should be one of the important polisies to sustain and to develop the Malaysian economy.
The other concern of HRD policy is to assist the ‘Bumiputera; Malay and other indigenous people’ on the HRD activities, for them to take part in the urban economic activities and to improve their incomes.
Malaysian government has advanced the wide-ranging vocational education and training facilities; universities, polytechnics, institutes of technics, and vocational training centers. The government has also advanced some programs for HRD; so-called apprenticeship program and HRD Fund.
It can be said that the HRD system has some own problems to be solved; the shortage of supply of human resources, people's poor preference to enrollment of the technical education and skills-related training, and the gaps between the demand and the supply of the human resources.
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