Kuala lumpur: Malaysia and China will strengthen their cooperation to jointly develop future industries, with a focus on Technical and Vocational Education and Training (TVET) as Malaysia's primary approach to preparing for the future economy, Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi announced.
According to BERNAMA News Agency, Ahmad Zahid emphasized the need for both nations to advance beyond traditional trade, pinpointing areas such as electric mobility, battery technology, renewable energy, smart manufacturing, digital systems, and talent development as key sectors for collaboration. He noted that Malaysia offers strategic geography, a growing industrial base, and a young, trainable workforce, while China contributes technological depth, industrial scale, and expertise in new energy industries.
During his keynote address at the Malaysia-China Forum on Electric Vehicle (EV), Battery, and New Energy Talent Development and Innovation (MCEF 2026) at the Asia School of Business, Ahmad Zahid highlighted the potential for the partnership to strengthen regional value chains, support ASEAN's industrial transformation, and create a meaningful alliance for the region's future.
The Deputy Prime Minister underscored the significance of the transition to EVs, batteries, and new energy, describing it as a major industrial revolution. He noted that global EV sales reached approximately 21 million units in 2025, with China leading the transition. In the ASEAN-6, sales of electric and electrified vehicles increased by 62 percent in the first nine months of 2025.
Ahmad Zahid emphasized that this transition encompasses more than vehicles, extending to batteries, charging infrastructure, semiconductors, software systems, energy storage, grid readiness, and advanced manufacturing. He stated that Malaysia aims to become an active participant in the regional EV and clean energy ecosystem.
To support these goals, Malaysia has positioned TVET as the frontline for preparing the future workforce, producing skilled workers such as engineers, system designers, technical specialists, and software talent to meet industry demands. National TVET graduate employability reached 95.9 percent in 2025, up from 95.6 percent in 2024, illustrating the alignment of training with industry needs.
As Malaysia enhances TVET to support advanced manufacturing, the digital economy, green technology, and energy transition industries, Ahmad Zahid stated that the government aims to create 700,000 new manufacturing jobs and 500,000 digital economy jobs.
At a subsequent press conference, Ahmad Zahid announced the establishment of the Malaysia-China Institute (MCI), which will focus on high TVET and advanced technologies. The institute is modeled after the German-Malaysian Institute and Malaysia-Japan Industrial Institute, with a specialized focus on future technologies linked to China's industrial strengths. The development cost for the institute is expected to exceed RM500 million upon completion.