TARGETED APPROACH TO DEVELOP TALENT, EDUCATION CAN ENHANCE MALAYSIA'S COMPETITIVENESS RANKING - ECONOMISTS
Malaysia's world competitiveness ranking can be enhanced through a targeted approach to develop workforce talent and education to achieve a high level of performance, thereby boosting economic growth and improving per capita income.
Juwai IQI global chief economist Shan Saeed suggested that the government collaborate with Malaysian universities to introduce smart aptitude tests focusing on English and mathematics to address workforce skill gaps. “Focusing on communication skills, presentation skills, and understanding of geography and the global economy meets a significant portion of what global organisations demand from their workforce,” Shan told Bernama.
Shan said that 80% of corporate success depends on communication skills and that technical skills can be achieved through on-the-job training.
He said with the introduction of aptitude tests, students can improve their mathematics and English skills to advance their careers.
Shan said this in response to a post on X.com (formerly Twitter) by World Bank lead economist for Malaysia Apurva Sanghi, who highlighted that a skilled workforce remains Malaysia's primary weakness.
On 24th June, Apurva addressed the debates surrounding Malaysia's drop in the latest International Institute for Management Development's 2024 World Competitiveness Ranking to 34th from 27th out of 67 countries. "But the notion that investors use these rankings to make investment decisions is a bit naive. The three most important things investors look at are policy stability (more so than even political stability), the quality of infrastructure (both physical and increasingly digital), and talent,” said Apurva.
However, Apurva did point out that Malaysia's Achilles heel, when it comes to investment, remains the talent factor.
Highlighting Apurva's remarks, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the current administration has made commendable decisions thus far in lifting Malaysia's competitiveness.
Despite the unpopularity of measures like the increased service tax rate and fuel subsidy rationalisation, he said the steps are necessary for long-term reforms. He reckons that the benefits of these actions will become evident over time, with the rationalisation of subsidies allowing savings to be redirected towards enhancing education at preschool, primary, and secondary levels.
"We will witness the results in the next 5 to 10 years when we produce high quality graduates in various fields. In the long run, investors will recognise these efforts and gradually invest in Malaysia,” he added.
Mohd Afzanizam said institutional investors, in particular, rely heavily on comprehensive research from both their internal teams and external sources. He said this multifaceted approach ensures they have a well-rounded understanding before committing to any investment.
“Key metrics in sovereign rating assessments include fiscal deficits, government debt, debt service ratio, GDP volatility, current account balance, international reserve assets, and the quality of institutions, such as governance. These factors are crucial in determining a country's economic stability and investment potential,” he added.