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Speech by Penang Chief Minister Lim Guan Eng on GDVT Engagement with the Industry

On the 18th of September last year, the State Government signed a RM2 million – Penang State Government sponsorship agreement with the Penang Skills and Development Centre (PSDC), to finance the German Dual Vocational Training (GDVT) programme in Penang.

Today, I am very pleased to announce that the programme has been successfully embraced by the manufacturing industry. The manufacturing industry’s participation is crucial if we are to succeed in deepening the talent pool for middle managers. German Vocational Training (GDVT) is the best in the world and we are proud to be able to bring it to Penang.

While many businesses in Penang are primarily export focused, many Small and Medium Enterprises (SME) are not. However, SMEs are part of the ecosystem that makes Penang such a powerful industrial cluster. So, in order to remain competitive, businesses have to continue to invest in capital and in talent. Therefore, I am proud to say that the State Government’s sponsorship is open to all companies in Penang, irrespective of whether it is a SME or an MNC. However, only Malaysian students will qualify for the sponsorship and preference will be given to Penangites.

Ladies and gentlemen

Through our website PENANGGDVT.COM, those who are interested can apply online for the programme, and their CVs and personal data will be forwarded to the participating companies. With this, we want to ensure, that the GDVT partner companies have direct access to highly talented trainees in Malaysia that they require.

I am proud to say, that less than a year after signing the sponsorship agreement, we have over 120 students enrolled in current and future batches for our Mechatronics programme. I am also pleased that the success has proven the need for a second programme, which is currently in its approval stages at a federal level. The programme “Precision Machining” is likely to start in September this year.

Ladies and gentlemen.

The German Dual Vocational Training programme in Penang is truly unique within the Malaysian educational system. While being hired by the training company as a regular staff with a monthly salary at the minimum wage of RM1000, the students get trained concurrently at the training institution to enhance their theoretical knowledge. In other words, these fortunate students are paid to study – the tuition fees paid by the State Government and the GDVT companies. In practice, this means that trainees will benefit greatly from the practical exposure primarily from the training and experiences of their senior colleagues, applying their knowledge immediately. As specialists in their own field, they will be able to attract higher pay.

Once again I would like to repeat my encouragement to our local SMEs in becoming a vocational training company along with MNCs.

Ladies and Gentlemen.

Penang’s unemployment rate is one of the lowest in Malaysia at 1.5% as at 2014, well below the natural rate of unemployment of 4%. This shows that the labour market in Penang has been very competitive.

I would now like to encourage you here today to share your thoughts and concerns regarding the GDVT programme.

Again, I would like to thank the PSDC very much for organizing this forum here today and all participating companies. Please be assured, that the GDVT programme has the State Government’s full support. Let us work together with the Penang State Government and Multi National Corporations (MNCs) together with SMEs as “GDVT corporations” to make our labour force competitive so that Penang remains the premier location to invest, learn, live, work and play. The mere association with being ‘Trained in Penang’ will brand Penang and open up many opportunities.

Thank you.