SHAH ALAM – The New Industrial Master Plan 2030 (NIMP 2030) is showing strong progress as Malaysia positions itself to create millions of high-income jobs for young people through advanced manufacturing and skills-based education.
The plan was seen to be on the right track after the manufacturing sector’s value-added gross domestic product recorded a 3.7 per cent increase to RM96.9 billion in the second quarter of this year.
The growth enabled the creation of 3.3 million new jobs with starting salaries ranging from RM4,000 to RM10,000 in high-impact skills sectors such as electrical and electronics, pharmaceuticals and aerospace.
New growth areas including electric vehicles, renewable energy and advanced materials were also identified as major contributors.
From an employment perspective, the number of workers in the manufacturing sector rose by 0.9 per cent, or about 27,000 people, in the second quarter of 2025, bringing the total workforce to 2.83 million.
The median salary in the sector increased from RM2,360 in 2023 to RM2,490 last year.
Launched on Sept 1, 2023, NIMP 2030 entered its third year with implementation reflecting the government’s ambition to transform the industrial sector into one that is more competitive, technology-driven and high value-added.
Flagship projects record notable progress
Beyond macroeconomic performance, several flagship projects under NIMP 2030 recorded encouraging progress.
The Smart Tech-Up programme and smart factory recognition initiative saw 26 companies certified in the third quarter, with another 44 expected by the end of 2025, surpassing the initial target of 40 smart factories.
On financing, the Strategic Co-Investment Fund (CoSIF), launched in February with an allocation of RM131.5 million, improved access to funding for small and medium enterprises and mid-tier companies.
By October, six fundraising campaigns had been successfully completed, while 40 new campaigns were identified with a combined funding target of RM160 million.
In the electric vehicle segment, Perodua’s national EV project reached 90 per cent implementation progress, with market entry expected in the fourth quarter.
The Investment, Trade and Industry Ministry (Miti) also led the National Carbon Capture pilot project to support the development of the carbon capture, utilisation and storage sector, which was in the Front-End Loading Two engineering study phase.
SMEs and skilled talent remain key challenges
Despite the progress, Miti acknowledged that the implementation of NIMP 2030 faced challenges, particularly industry readiness and shortages of highly skilled talent.
The largest gap was identified among small and medium enterprises (SMEs) that remained at an early stage of digitalisation.
Cash flow constraints, commercial risks and reliance on traditional financing caused some SMEs to hesitate in investing in automation and new technologies.
“Not all industry players are at the same level of fitness to run this transformation marathon. That is why CoSIF was introduced to narrow the financing gap and encourage co-investment between the government and the private sector,” Miti said in a statement.
A shortage of highly skilled technical talent in automation, data, advanced engineering and artificial intelligence was also cited as a major constraint.
Miti stressed that reskilling and upskilling the existing workforce had become increasingly urgent to support NIMP 2030’s aspirations.
“Miti is actively promoting careers in the industrial sector among young people and helping industries raise their adoption of manufacturing technology to make the sector more attractive to highly skilled talent,” it said.
TVET and STEM as engines of success
Technical and Vocational Education and Training (TVET) and science, technology, engineering and mathematics (STEM) were identified as the main drivers of NIMP 2030’s success.
Their integration helped bridge skills gaps through reskilling and upskilling programmes while ensuring a smoother transition towards smart manufacturing.
TVET produced practical workers such as technicians and skilled operators who formed the backbone of automation and smart manufacturing on factory floors.
STEM graduates, meanwhile, acted as innovators driving research and development, solving complex technical problems and introducing new technologies to boost industrial competitiveness.
To ensure a sufficient talent pipeline, Miti continued to attract students by highlighting stable, high-income career prospects in the industrial sector.
Efforts included industry collaborations for company visits, sharing sessions with engineers and entrepreneurs and early exposure to automation, robotics, artificial intelligence and green energy technologies.
Miti also worked closely with the Education Ministry, Higher Education Ministry and TVET training providers to align curricula with industry needs and expand quality internships and apprenticeships.
“When students see a clear link between learning and real job opportunities, interest in TVET and STEM will grow. This is crucial to ensure Malaysia has a future-ready workforce capable of realising NIMP 2030,” it said.
From TVET classrooms to successful careers
The effectiveness of the skills-based approach was reflected in the success stories of TVET graduates.
Former student Mohamad Shafiq Zulkafli, 29, who was introduced to automotive tools while still in school, became a successful young entrepreneur after pursuing TVET education.
He eventually owned two automotive workshops in Bandar Seri Botani, Ipoh, Perak earning up to RM60,000 a month.
Shafiq studied automotive technology at the Sungai Siput Community College, Perak before furthering his education at the Sultan Azlan Shah Polytechnic in Behrang, gaining four years of combined study and hands-on experience.
“TVET gave me the opportunity to learn practically. Beyond theory, we were exposed to real workshop environments and that knowledge became the foundation of my success today,” he said.
His achievements reflected NIMP 2030’s emphasis on skills-based learning, practical training and real industry exposure.
Another TVET pathway was taken by Irfaan Nabil Mohd Faizal, 18, a former tahfiz student who pursued welding under the Malaysian Skills Certificate Level Three at the Northwestern Institute of Advanced Technical Skills in Seri Manjung, Perak.
“I saw TVET as a more direct route to employment in a field I enjoy. Even though I studied religion, my family supported my choice because they saw the potential,” he said.
His story reflected NIMP 2030’s goal of developing an inclusive skilled workforce that included students from religious and moderate academic backgrounds.
Industry demand for TVET graduates
Industry players also highlighted strong demand for TVET graduates.
MAG Auto Garage Services managing director Dr Azlina Ahmad said employers prioritised TVET graduates for their practical efficiency, particularly in the automotive sector.
“Our industry needs workers who understand procedures, equipment and workplace risks without long basic training because they already have real workshop experience,” she said.
She added that TVET graduates often progressed faster, with career advancement and salaries based on performance and skills rather than academic qualifications alone.
MAG’s collaboration with the Malaysia Productivity Corporation under the Industry Academy Programme produced diploma graduates in diagnostics and IR4.0 technologies, with nine invited to attend the International Convocation at the House of Commons, United Kingdom, last month.
Their success highlights NIMP 2030’s aspiration to build a competitive and inclusive industrial workforce capable of sustaining high-income economic growth by 2030.