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Budget 2026: RM7.9b allocation to strengthen TVET, new bill in pipeline

PETALING JAYA: The government will increase the allocation for Technical and Vocational Education and Training (TVET) to RM7.9 billion in 2026, up from RM7.5 billion this year, to expand opportunities for local talent in high-growth industries.

Prime Minister Datuk Seri Anwar Ibrahim said the National TVET Council would play a greater role in strengthening the ecosystem, including through the drafting of a dedicated TVET Bill.

“More local talent in the field of TVET is needed to meet the requirements of high-growth industries. The National TVET Council will therefore enhance the ecosystem more comprehensively, including through the drafting of a TVET Bill,” he told the Dewan Rakyat when tabling Budget 2026.

He added that the increased allocation would boost access to education and training, particularly in priority sectors.

The National TVET Council will receive RM45 million to introduce digital technology and artificial intelligence skills to 10,000 tahfiz and pondok students through the IPT@Komuniti programme, while Education Ministry TVET institutions are allocated RM1.3 billion to train 79,000 students.

In addition, HRD Corp will provide three million training opportunities worth RM3 billion, focusing on high-tech, digital and energy transition sectors. The Skills Development Fund Corporation (PTPK) will channel RM650 million to support over 25,000 trainees in areas under the New Industrial Master Plan, such as artificial intelligence, electric vehicles and semiconductors.

The Skills Development Department will also allocate RM34 million through the In-Industry Academy programme to prepare locals for skilled jobs and reduce reliance on low-skilled foreign workers. GiatMARA will train more than 13,000 targeted groups including gig workers, while Community Colleges will continue lifelong learning programmes for the disabled, elderly, single mothers and Orang Asli.

Anwar said facilities would also be upgraded.

“We will strengthen TVET institutions, including building a new hangar at ADTEC Shah Alam for aircraft maintenance and a Teaching Shipyard Complex at Universiti Malaysia Terengganu to support maritime training under the blue economy. A new Vocational College will also be developed in Sabah,” he said.

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