Malaysia is in need for highly-skilled human resources to close the present demand-supply gap in various industries, particularly those driving economic transformation. The government has determined that the Technical and Vocational Education and Training (TVET) sector as the main route in providing highly-skilled human resources and also one of the key drivers of the economy for Malaysia to become a high-income nation. While this study recognizes that initiatives have been taken to continuously improve the sector through the TVET transformation programs, it is imperative that the governance issues faced by the key stakeholder are systematically addressed to ensure that the operating and delivery system can be optimized.

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In the 10th Malaysian Plan 2010-2015, the Government of Malaysia emphasized the mainstreaming of vocational education in its pursuit to transform Malaysia into a high-income developed nation by 2020. To achieve this vision, Malaysia needs more skilled and semi-skilled workers to become knowledge workers (k-workers). The 9th Malaysian Plan indicates that only 28 per cent of the populations in Malaysia are highly skilled workers. To meet the emerging skill requirements for k-workers, vocational education needs to be transformed to equip trainees with requisite skills. Past studies show that in Malaysia there is a gap between the skills learned in training institutions and skills required by employers. However, there are no studies and no model that explores the development process of employability skills in training institutions and the industry. To address this issue, we used a mixed research method (e.g. questionnaire, employability skills survey and grounded theory) to explore the formation of skills in training institutions. The results showed a high level of employability skills among trainees but also the need to consider a number of supporting factors to ensure that skills learned can be applied in the work context.

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