Malaysia gained independence in 1957 and during the period the economic activities of the country was dependant on commodities like rubber and tin. The Government then came up with a strategy to reduce poverty. With the economic activity influenced by industrialisation, the Government came to the conclusion that human resource in the industrial sector would be one of the driving forces for the countries socio economic growth. The countries development plans and policies as well as the economic development lead to the country being knowledge based economy.
The concept of k-economy is the generation and utilization of knowledge in contributing towards the economic growth and creating the nation’s wealth. Knowledge is currently the key driving factor for growth strategy other than labor, capital, raw material and entrepreneurship in production.
The notion of knowledge-based economy is ability of the human capital to create, innovate, generate and exploit new ideas as well as apply technology and exercise superior entrepreneurial skills. Organizations are to become more knowledge-intensive when more industries are adopting the concept of knowledge-based workforce. Accordingly, the economy will be characterized by knowledge-based activities and high-technology industries accounting for a significant share of employment, GDP and exports. Hence, knowledge will become a commodity to be traded, besides being a factor of production.
The government has started implementing several initiatives to facilitate the smooth development of k- economy, particularly in the areas of HRD, science and technology (S&T), research and development, info-structure and financing. Examples of some of these initiatives include the launching of the National IT Agenda (NITA) and the Multimedia Super Corridor (MSC). These initiatives is to position itself in the global-map of knowledge-based economies and to undertake measures in ensuring that equitable access is targeted to all segments of Malaysia society.
HRD Policies and Legislation
The Government’s plans of developing the economy based on knowledgeable workforce are clearly apparent under the National Vision Policy (NVP). Out of seven critical thrusts in the NVP, two thrusts specifically relates to:
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Developing a knowledge-based economy as a strategic move to raise the value-added of all economic sectors and optimizing the brain power of the nation.
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Strengthen human resource development to produce a competent, productive and knowledgeable workforce.
Last Updated on: 20-11-2009
