Associate Professor. Ts.

Dr. Mohamad Sattar Rasul

Preparing TVET Graduates for the

Digital Economy

Chairman, STEM Enculturation Center,

Universiti Kebangsaan Malaysia

Assoc. Prof. Ts. Dr. Mohamad Sattar Rasul Chairman, STEM Enculturation Center

Universiti Kebangsaan Malaysia

Preparing TVET Graduates for the Industry 4.0 and Digital Economy

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The term 'Digital Economy' was first mentioned in Japan

by a Japanese professor and research economist in the

midst of Japan's recession of the 1990s.

According to Thomas Mesenbourg (2001),[3] three main

components of the 'Digital Economy' concept can be

identified:

•e-business infrastructure (hardware, software,

telecoms, networks, human capital, etc.),

•e-business (how business is conducted, any process

that an organization conducts over computer-mediated

networks),

•e-commerce (transfer of goods, for example when a

book is sold online).

Digital economy refers to an

economy that is based on digital

computing technologies, although

we increasingly perceive this as

conducting business

through markets based on

the internet and the World

Wide Web.

IoT has now truly brought the

digital economy into the business

to business (B2B) world

Bussiness to Consumer (B2C)

- B2B transaction is more than

twice the B2C world

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It has disrupted age old industries while giving rise to

completely new ones. It has upended the way brands are

built. It has transformed the economics of celebrity. It has

added a unique enigma to the generation of our youngest

adults, the revered Millennials. It has become the top issue

in boardrooms across industries around the world.

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In the world of B2C (business to consumer) e-

commerce, the products and services that are

marketed and sold are the same as in bricks-

and-mortar transactions. In the bigger B2B (business to

business) world, the products themselves are changing. And the big

product is data – reams and reams of it. Data is central in B2B

business.

Steve Bolze, President and Chief Executive Officer of GE Power,

USA, did not mince words: “Digital transformation is the single biggest

thing in my company and will be for the next 20 years.” The aim: to

get more out of the company’s installed base. By analysing even just

a small percentage of data, a tremendous amount of productivity can

be released, Bolze reckoned. “All of our businesses are being

reimagined by software,” with a chief digital officer in each division.

“Embedded in GE is a $6 billion software company.”

Digital transformation is allowing companies not just to be in tune with

their customers, but also to identify their ultimate consumers and very

quickly drive the evolution of business models. With digital technology

applied to its products, for example, a sports apparel maker can

evolve into a health and fitness company. “We can set a higher

purpose for a company – to improve people’s lives and help the world

run better,” explained Bill McDermott, Chief Executive Officer of SAP,

Germany.

A key challenge in this digital new age is the issue of privacy and data

ownership. Not everybody is willing to share data.

Leadership is crucial for successful digital transformation. Education

for people to be digital-ready should be a broader concern. “We have

to initiate the uninitiated into the digital economy “We have to retrain

people, including blue-collar workers that don’t feel a part of this

economy. How do we connect them and give them the skills so they

can participate in this world we are now in?”

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2020 Skills Demand Trend

By 2020, 50% of the

companies would require

talent related to software

development, followed by

database management and

networking and network

security.

MALAYSIA DIGITAL ECONOMY CORPORATION

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Drivers of the 4th Industrial Revolution Physical

Autonomous vehicles (not just cars)

3D printing (more uses to come)

Robotics (collaboration between humans & machines)

Smart materials (self-healing, self-cleaning)

Digital Internet of things (relationship between people & things

Sensors, Remote monitoring, Digital currency (“Bitcoin”)

Biological Genetics

Synthetic biology

Engineering

Humanising Potential

make (something) more humane

to give or attribute human character to.

Humanizing Technology: A History of Human-

Computer Interaction

Today, billions of people roam the Internet from

computer phones they hold in their hands.

Social media. Virtual reality. Internet of Things. Artificial

Intelligence. Technology and humans are becoming ever

enmeshed. We rely on technology like never before; we

use it to stay in touch, complete work, get the news,

shop for groceries, manage our finances… the list goes

on. And on.

10% of people will wear clothes connected to internet

10% of reading glasses connected to internet

30% of corporate audits performed by AI

Taxes collected by a government blockchain (like Bitcoin)

90% using smart phones

80% of people with digital presence in internet

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Industry 4.0 With the advent of Industry 4.0 and smart factories, manufacturing sector has been experiencing

exponential technology growth. Convergence of novel disruptive technologies with previous

generation technologies in manufacturing play an important role in transforming key industries

such as aerospace, automotive, industrial automation, healthcare, power generation and oil and

gas.

Technologies such as AR and VR have the

potential to elevate automation levels

achieved in various industries.

IoT will drive manufacturers of all sizes-

small, medium and large- to invest in

achieving efficiency in logistics.

Digital technologies reduce the distance

between manufacturing and consumers

unlike in traditional manufacturing set up.

For example 3D printing will allow

increased customised product design and

selling leading to reduction in import.

With digital infrastructure learning new

skill or connecting to an expert is made

comparatively easier through online

learning platforms and communities.

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The new changes of labor market in China

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With the Industrial 4.0, the demand for low-skilled workers is decreasing while the demand

for middle/high-skilled workers is increasing.

The need of the front-line skilled operators greatly reduces due to the intelligent

manufacturing, and there is a huge decrease in the demand for the secondary

vocational education which trains “the blue collar workers”.

As for quantity, the demand for middle/high-skilled workers is increasing.

31%

39%

30% Secondary vocational

education

Higher vocational

education

The need proportion of different levels of technical and skilled

talents for the positions related to industrial robots

white collar

grey collar

blue collar

Changes in "contents of work" in the 4th Industrial Revolution

Upstream process (management planning, product planning,

marketing, R & D)

High skill work – [ ↑] As new businesses and markets expand in various industrial sectors e.g.) management strategy in charge, M & A in charge, data scientist, marketers, researchers and developers

Middle skill work as support for high skill work

– [ ↑] Operation staff that embodies the business

creation process centered on data scientist etc.

Production / procurement

Because of IoT, robots and others make labor

saving / unmanned factories common sense.

Job related to

manufacturing

– [ ↓]

Procurement job – [ ↓] Because of Automation and efficiency

improvement of supply chain using IoT

Smart Farming Solutions

autonomous-robots-plant-tend-and-harvest-

entire-crop-of-barley

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Digital Malaysia Plan In 2011, the Government

of Malaysia launched Digital Malaysia as a

critical national programme to advance the

country towards becoming a developed digital

economy by 2020. The original target set for

Digital Malaysia’s contribution to GDP was 17%

by 2020. However, given the rapid growth of the

segment, already contributing over 17.1% to

GDP by 2016, Digital Malaysia’s target has been

revised to account for 20% of Malaysia’s

economy by 2020. 1

eUsahawan is a programme run by MDEC to expose Malaysian youth

and micro, small, and medium enterprises (MSMEs) to digital

entrepreneurship.

eUsahawan Muda is a collaborative effort between MDEC and

Technical Education and Vocational Training Institutions (TVETs) to

foster the growth of digital entrepreneurs. The programme

introduces digital entrepreneurial knowledge into the curriculum of

TVET courses. Since 2015 almost 351 TVET institutions such as MARA

Skills Institute, MARA Higher Skills College, Community College,

MARA Professional College, National Youth Skills Institute and

GIATMARA have participated in this programme. Source: MDEC

Digital Malaysia Plan

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Future of the Digital Industry in Malaysia

Higher demand for digitalisation from different verticals to increase efficiency and save on

operational costs

1. Manufacturing and Natural Resources: a. Driven by Industry 4.0, digital technologies

such as robotic process automation (RPA), are increasingly being used in the

manufacturing and natural resources sectors, e.g., automation in palm harvesting b. The

government is encouraging local industry participants to embrace automation and

smart manufacturing through the use of IoT

2. Government: a. With eGov 3.0, ICT adoption in the government sector is moving towards

an open government model, increasing public participation through technologies such

as big data and cloud computing b. Public sector ICT initiatives include the Gallery of

Malaysian Government Mobile Applications (GAMMA), 1Malaysia One Call Centre

(1MOCC), and Government Online Services (GOS) Gateway

3. Communication, Media & Services: a. Utilisation of new technologies such as fibre optics, wireless transmission, satellites, and

digitalisation alongside offerings such as 3G content, WIMAX digital TV, Voice over Internet Protocol (VOIP), and sensor

technology. b. ICT initiatives in areas such as Greater KL are contributing to better high-speed broadband and Wi-Fi availability,

while mobile broadband is making up for the lack of fixed-line infrastructure

4. Banking & Securities a. Growth of e-commerce, e-banking, and FinTech solutions are spurring ICT developments in the banking

sector to enhance core services and reduce operational costs b. Leveraging technologies such as artificial intelligence (AI), digital

payments, and big data analytics

5. Transportation a. Rapid expansion of IT services in the transportation sector’s shared services outsourcing (SSO) b. Greater

utilisation of green technology to contribute to better fuel economy and lower greenhouse gas emissions

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In 2016, Sabah recorded the highest percentage of TVET IT graduates,

representing 29% of the total number of IT graduates from SLDN.

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Improvements Needed in Student Industrial Training

“Future ready” curricula

Early exposure to work place

Certification and credentialing

Private sector involvement to improve the social status of VET

Need for constant updating – education & training throughout life

Social skills development

Closer ties to business/industry; needs of future and current employees

Broader sharing of resources – used anywhere by anyone

Classroom/lab teaching augmented with virtual materials

Teacher preparation & continued professional development

Interactive, engaging, content-rich instruction

Women Empowerment In Malaysia, woman makes up 39% of the working population an increase of

27% since 2007. 70% is employed in the service sector. More than 1 million

are professionals or in management.

Digital Natives Millennials are a powerful generation in the making, being born during the

time of the digital revolution, growing up with perks, such as broadband,

smartphones, and social networks

Migration & Cultural Diversity

Malaysia immigrants are from over 200 countries of origin. More than 30

000 choose to make Malaysia their second home in the last 10 years

Urbanisation

By 2030, two-thirds of the world’s population will reside in cities.

The number of megacities with more than 10 million people is

expected to grow to over 40

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Future of Work

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06

09

07

WO

RLD

CH

AN

GIN

G T

REN

DS

Blurring Boundaries of Traditional Sectors

Industries and sectors have been converging, reducing the clear

lines of demarcation originally defined and codified almost 80

years ago”

Hyper-Connectivity

Malaysia is ranked 31st as the most tech ready country with

approximately 150% mobile phone penetration

Globalisation & Decentralisation

Decentralized economic system defined by collaboration between

individuals and the sharing of resources

Rise of Machines

Future Productivity: Robots are cheaper, faster and efficient

10 Green & Sustainability “Smart” is the new “green” -Mega Trend of the past decade—

green products—will be replaced in this decade by Smart products

and services

01 Aging World

By 2050, the global population of older persons is projected to

more than double its size in 2015, reaching nearly 2.1 billion

Future of Work

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01

04

02

FU

TU

RE C

HA

LLEN

GES

Shrinking of Working Population

Many countries will face a major challenge in managing to

maintain and boost economic growth rates as a result of these

dramatic demographic changes”

Multi-Generational Culture

More than 30% say that their personal drive is intimidating to

older generations

Large Number of Jobs Are At Risk High skilled/specialised workers: Doctors, teachers, engineers

High –low skilled workers: Technicians, mechanics, repairmen,

Semi skilled workers: Clerks, telemarketers, sales

Greater Mismatch Approximately 65% of children entering primary school today will have

jobs that do not yet exist and for which their education will fail to prepare

them, exacerbating skills gaps and unemployment in the future workforce

05 Raising the Bar Astudy exploring the gig economy found that 93% of companies

identified a blended workforce as they sees freelance workers

teaming up with employees to work on projects together

• Everyone today living and moving to cities.

• They are moving into IR4.0 to new oil and gas,

data and IT. In term of momentum, they need a lot

of software programmers, network and

telecommunication engineers and another key

element is entreprenurship.

• The new generation likes to do a job by

themselves. They can make their own economy

and sphere. Graduate students can make their

own job by doing business in what they are expert

in and like, that is called Technopreneur.

• Three keymaker governments in term of policies

makers, universities produce the workforce and

industry needs to enhance collaboration.

• Moving forward from here, keep continuing and

being able to address, bring up and develop

generation z to become the next source of nation’s

pride.

Empowering the Quality of Skilled Workers to the World Class Standard

Empowering

the Quality of

Skilled

Workers to

the World

Class

Standard

1

2

3

4

5

Design a

relevant

method

Collaborate

s with the

industry

Trends

towards

this 4IR

Challenges

and

readiness

Importanc

e of the

IR4.0 to

the TVET

community

Technology has govern

the education and

classroom teaching and

learning where

emphasis on textbook is

less and the question is,

how far does this affect

the approach towards

skills development?.

4 key pillars support

growth of societal,

which are knowledge,

diffusion, talent

mobilization and

technology

Identify what type of skills

that we need to

transform, challenge and

the curriculum

development to upgrade

The ministry must

identify what our

partners could produce.

NOSS is quite pertinent

to at least meet

minimum standard and

for now adding up with

the professional

certification there must

be more collaborative

efforts

Who are our

stakeholders and their

character, emotion and

so on so that they can

fit in the industry

Action Plan

Create gamification in implementing

gaming mood into a project •Develop gaming as tools that can be used as a teaching and

learning approach.

Introduce fast service skill training •Introduce/ train the trainer with a new platform of teaching

method. Example: e-learning and collaborative network.

Collaboration with industries to up skill

master trainers •Reskill the trainers with the recent technology

•Create a collaboration between industry and institutions

•Attach lecturers or trainers with the industry in learning recent

technologies

•Adopt program between industry and school (Technique,

Vocational and Secondary Schools)

•Industry can adopt a school, which they can introduce and share

their experience with the student regarding skills and technologies.

•Create collaboration between local and international company in

enhancing the skills and to strengthen the marketability.

Action Plan

Needs of specific skill in advance software and

skills for technology/apps

•Introduce an attachment program for the industry and institutions in

learning a new software and skills for new technology

•Provide training services to lecturers and students in order to introduce a

new technology

Provide facilitating and coaching method by industry

experts

•Provide a mentor-mentee program between industry and institutions

•Provide an exchange program between industrial workers and academician to

improve the skills

•Introduce the recent technology, teaching and learning approach.

•Adapt an inquiry-based learning as a new learning method.

Work Based Learning emerging within the

traning institute and industry •Rearrange the learning system to match with the industry work

enviroment.

•Create an engagement between industry and institutions to get

the latest requirement by the industry in upskilling the graduates

Action Plan

ICT Teaching and learning that meet and support the needs of

the 4IR such as Flipped learning & Blended learning, Gamming

•Provide a digital teaching and learning tools in enhancing the digital skills

•Upgrade new teaching aids or equipments in making learning more innovative

•Implement learning management system in classroom

•Introduce teaching and learning approach beyond imagination using technology.

•Implement a teaching and learning method such as project-based learning, work-

oriented learning, contextual learning and collaborative learning.

•Reduce teaching and learning through theory and increase learning through practical

or hands on.

•Introduce blended learning and give freedom to the students to adapt the learning

process through blended learning.

•Introduce technology, social media and artificial intelligence as one of the teaching

aids.

•Include industry in the teaching and learning process to be more structured.

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Assoc. Prof. Ts. Dr. Mohamad Sattar Rasul

Chairman, STEM Enculturation Center

Universiti Kebangsaan Malaysia

drsattar@ukm.edu.my