Training must prove worth

Digital adoption and practical skills vital to maintaining long term competitiveness

KUCHING: Sarawak’s businesses must translate workforce training into measurable productivity gains to cope with rising wage costs and remain competitive.

Universiti Malaysia Sarawak (UNIMAS) Faculty of Economics and Business senior lecturer Farhana Ismail said additional investment in technical and vocational education and training (TVET) under Budget 2027 should equip workers with practical skills that improve business efficiency.

She said training must keep pace with technological changes, particularly the growing use of digital tools and artificial intelligence (AI) in daily operations.

“In the era of digitalisation and artificial intelligence (AI), workers need to be equipped with the skills to integrate digital tools and AI into their daily tasks to streamline operations and improve productivity,” she told Sarawak Tribune.

Farhana called for closer collaboration between training institutions and employers to ensure programmes met industry needs.

She said firms should also invest in technology, equipment and more efficient work processes to maximise the benefits of workforce development.

“As businesses adjust to higher wage requirements, productivity growth will become increasingly important in helping firms generate greater value added per worker, manage rising labour costs more effectively and maintain long-term competitiveness,” she said.

She added that sustained productivity improvements could support better wages, working conditions and career opportunities while strengthening business performance.

On household spending, Farhana said higher personal income tax relief and reductions in selected tax rates under Budget 2027 could boost disposable income, particularly among middle- and higher-income taxpayers.

However, she said the benefits to Sarawak’s consumer-facing businesses would depend on household spending decisions.

“Sectors such as food and beverage, retail, transportation and education could experience stronger demand if households increase their discretionary spending,” she said.

She added that stable employment, real wage growth and price stability would be equally important in strengthening consumer confidence and sustaining domestic demand.