KUALA LUMPUR, 21 OCTOBER 2024 – Talent Corporation Malaysia Berhad (TalentCorp) welcomes the progressive initiatives presented in Budget 2025, which aim to position Malaysia as a leader in technology, sustainability and innovation. The initiatives strike a crucial balance between driving economic progress and promoting the well-being of the people, ensuring that societal needs remain a priority. With a strong emphasis on government efficiency and improving public services, Budget 2025 sets the foundation for a more resilient nation ready for long-term success.
“Aligned with national goals, allocations in Budget 2025 support TalentCorp’s ongoing efforts to cultivate a skilled and resilient workforce capable of meeting evolving industry needs. As the strategic think tank of the Ministry of Human Resources (KESUMA), we collaborate closely with stakeholders to align Malaysia’s talent development strategies with the nation’s growth ambitions. Initiatives such as the MyMAHIR Future Skills Talent Council (FSTC) and the Malaysia Critical Occupations List (MyCOL) play crucial roles in identifying and addressing skills gaps, and taking steps to build a globally competitive workforce,” commented Thomas Mathew, Group Chief Executive Officer, Talent Corporation Malaysia Berhad.
Bridging Talent Gaps through Structured Internships
A prominent measure in Budget 2025 is the extension of the National Structured Internship Programme (MySIP) until 2030, now also incorporating students interning in regulatory bodies. This expansion aims to provide young talents with critical hands-on experience, enhancing their employability and ensuring a stronger alignment between education and industry requirements. The focus on expanding internship opportunities reflects a broader strategy to bridge the gap between academia and the professional world.
Another key initiative that supports this strategy is the Internship Matching Grant for SMEs and Start-ups (LiKES). Launched in March 2024, LiKES has received an additional RM10 million to support quality internships, particularly in STEM fields. By early October 2024, over 774 companies had registered under LiKES, hiring 6,000 interns across Malaysia. This funding aims to empower SMEs and start-ups, especially those outside major urban areas, providing them with the resources to nurture young talent and drive innovation.
Preparing the Workforce for a Changing Landscape
In parallel, the RM7.5 billion allocation towards Technical and Vocational Education and Training (TVET) is evidence of the government’s commitment to workforce readiness, with a focus on key sectors such as Maintenance, Repair and Overhaul (MRO), Electric Vehicles (EV), aerospace, and Artificial Intelligence (AI) to prepare Malaysians for the evolving landscape of emerging industries and economic demands.
“By equipping the workforce with specialised skills, the government aims to future-proof Malaysia’s talent pool and strengthen its competitiveness in high-value industries. TalentCorp remains dedicated to supporting these efforts through initiatives that nurture high-value employment opportunities and foster a resilient talent ecosystem,” he added.
Promoting Work-Life Sustainability and Inclusive Practices
Budget 2025 extends tax incentives for employers hiring women returning to work after a career break. These incentives, valid for applications from 1 January 2018 to 31 December 2027, offer a 50% additional deduction on employment expenses for a 12-month period, encouraging greater female workforce participation.
Recognising the challenges faced by working caregivers, the government has introduced a 50% additional deduction for employers who provide paid caregiving leave of up to 12 months. This policy aligns with Malaysia’s broader care economy efforts to support job retention and promote work-life balance for employees fulfilling caregiving responsibilities for children, ill or disabled family members.
To further enhance workplace flexibility, Budget 2025 offers a one-off tax incentive for employers investing in capacity building and digital tools to implement flexible work arrangements (FWA). The expenses eligible for the incentive are capped at RM500,000 and must be verified by TalentCorp. “We are further playing a part in supporting work-life balance through TalentCorp’s Work-Life Sustainability advocacy programme, where we offer free workshops to assist employers in effectively implementing FWAs, reinforcing our commitment to fostering a healthier and balanced workforce,” Thomas Mathew remarked.
Commited to Long-Term Success
Looking ahead, TalentCorp is geared up to maintain a robust pace in empowering Malaysia’s workforce to adapt and thrive in an evolving economic landscape. “By collaborating with industry leaders and stakeholders, we aim to catalyse a talent ecosystem that integrates innovation, sustainability and inclusivity, positioning Malaysia as a global hub for talent and innovation,” he concluded.
