FMM PRESS STATEMENT: FMM Welcomes the National Education Plan 2026–2035 as a Key Enabler of Industrial Transformation, Productivity Growth and Innovation
January 29, 2026
Head Office, KL
Kuala Lumpur, January 23, 2025 — The Federation of Malaysian Manufacturing (FMM) welcomes the launch of the National Education Plan 2026–2035 and commends the Government for setting out a comprehensive and forward-looking education reform agenda that is closely aligned with the New Industrial Master Plan 2030 (NIMP 2030) and the implementation priorities under the Thirteenth Malaysia Plan (RMK-13).
As Malaysia enters a critical delivery phase of industrial transformation, FMM views the National Education Plan as a foundational enabler of productivity growth, workforce upgrading and long-term competitiveness. Human capital quality remains a key constraint for industry, and sustained improvements in education outcomes are essential to support higher value-added manufacturing, automation, digitalisation and the transition to future industries envisioned under NIMP 2030.
FMM fully recognises the importance placed under the National Education Plan 2026–2035 on strengthening mastery of Bahasa Malaysia as the national language and a unifying medium of communication in society and the workplace. At the same time, FMM strongly supports the emphasis placed on language proficiency, particularly English, which remains the primary language of business, technology, science and global knowledge. For many years, industry has highlighted weak English proficiency as a factor affecting graduate employability, workplace productivity and firms’ ability to integrate into global value chains. In this regard, FMM supports the strengthened focus on English and greater immersion approaches as practical tools to improve competency. FMM has previously called for English to be made a must-pass subject, and the renewed emphasis under the Plan represents a positive step towards addressing long-standing industry concerns.
The recognition of multilingualism as a strategic asset is also timely and positive. Exposure to additional languages such as Mandarin, Tamil and Arabic will enhance Malaysia’s human capital competitiveness, particularly in international trade, regional supply chains and investment-driven industries. Multilingual capability is increasingly important in a global business environment where cultural and linguistic fluency supports market access and cross-border collaboration.
FMM also strongly endorses the focus on Technical and Vocational Education and Training (TVET) and STEM education, which are central pillars of NIMP 2030 and Malaysia’s productivity agenda. The introduction of TVET exposure from Primary One is a bold and progressive initiative. FMM has consistently advocated for early exposure to TVET, including at the kindergarten level, to shape positive perceptions from a young age. Early exposure is critical to building a clear and respected pathway for technical and vocational skills development and repositioning TVET as an equal and attractive pathway alongside academic routes, rather than being viewed as a last option for school leavers.
The expansion of vocational colleges, increased training capacity and the streaming of TVET pathways from Form One are important and necessary steps towards strengthening Malaysia’s skilled talent pipeline. These measures will help address skills mismatches, support productivity upgrading and enable firms, particularly SMEs, to adopt automation, advanced manufacturing and new technologies more effectively.
FMM welcomes the realignment of STPM and matriculation programmes under the Ministry of Higher Education. This reform will contribute to a more coherent and seamless transition between secondary and post-secondary education, better aligning students with appropriate academic, technical or vocational pathways. From an industry perspective, improved alignment across the education system is essential to strengthening the education-to-employment pipeline, reducing talent leakage and ensuring that learning outcomes translate more directly into workforce readiness and productivity gains.
The strong emphasis on STEM education and future-oriented skills in technology, digitalisation and emerging fields is another encouraging development for industry. Manufacturers have long called for greater emphasis on STEM to support Industry 4.0 adoption, innovation-led growth and higher labour productivity. The Plan’s focus on future-ready skills is therefore well aligned with RMK-13 priorities to raise productivity, accelerate industrial upgrading and move Malaysia up the value chain.
FMM underscores that the success of the New Industrial Master Plan (NIMP 2030) and the aspiration to build an “economy in complexity” will depend significantly on how higher education institutions respond to evolving industry needs.
From an industry perspective, greater emphasis should be placed on strengthening postgraduate education, particularly at the Masters and PhD levels, in strategic fields such as advanced manufacturing, semiconductors, artificial intelligence, automation, materials science and industrial technologies. A larger pool of research-trained graduates is essential for Malaysia to move beyond technology adoption towards the development of home-grown innovation and intellectual property.
In this regard, FMM encourages the Ministry of Higher Education to further strengthen industry–academia collaboration as a core pillar of education reform. This includes promoting industry-driven research, improving alignment between university curricula and industrial demand, and expanding applied research, industrial PhDs and joint research programmes that directly support national industrial priorities.
FMM also sees the need for stronger mechanisms to translate research outcomes into commercial and industrial applications. Closer collaboration between universities, industry players and research agencies will help ensure that public investments in higher education and R&D deliver tangible economic outcomes, support productivity growth and enhance Malaysia’s competitiveness in high-value industries.
FMM looks forward to working closely with the Government and the Ministry of Higher Education as a key partner in the effective implementation of the National Education Plan 2026–2035. As industry transformation accelerates under NIMP 2030 and RMK-13, FMM stands ready to play a proactive role in shaping industry-relevant talent, strengthening applied research, and advancing Malaysia’s transition towards a high-income, innovation-driven economy. In particular, FMM will support the advancement of the TVET and STEM agenda through stronger industry participation, where manufacturers can act as ambassadors and role models by providing meaningful work-based learning opportunities, apprenticeships, industrial attachments and early exposure to real-world applications, career pathways and technologies. Such close collaboration between government, industry and education institutions will be critical to making TVET and STEM more relevant, accessible and attractive to students, while ensuring that education reforms deliver tangible productivity outcomes and sustain Malaysia’s competitiveness in the decade ahead.
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Mr Jacob Lee Chor Kok
President, Federation of Malaysian Manufacturing
FMM Advocates Transparency, Integrity, Accountability and No Corruption
About FMM
The Federation of Malaysian Manufacturing (FMM) (formerly known as Federation of Malaysian Manufacturers) has been the voice of the Malaysian manufacturing sector since 1968, advocating policies and initiatives that drive industrial growth, competitiveness and workforce development. Representing over 13,300 member companies (4,200 direct and 9,100 indirect) from the manufacturing supply chain, FMM is actively engaged with government and its key agencies at Federal, State and local levels. FMM is also well-linked with international organisations, Malaysian businesses and civil society. Apart from benefitting from FMM’s advocacy, FMM members enjoy value-added services including training, business networking and trade opportunities as well as regular information updates.
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