There is no question that higher levels of education will boost productivity, raise wages and the standard of living, stop the brain drain, improve the distribution of income and wealth as well as drive the economic growth, competitiveness and progress of a country. Additionally, an overall better educated workforce will typically lead to stronger aggregate economic growth. We discussed these in our last article.
Human capital is a critical factor of production of a country, more so than financial capital, natural resources and machinery, which can be far more easily acquired from global markets. An educated and skilled workforce is the foundation of the economic success and wealth of nations. This is the reason why investing in, and improving accessibility to as well as quality of, public education and a training-upskilling system is so very important. And why we cannot overstate the urgency to depoliticise our education policy and reverse the secular deterioration in the quality of public education in Malaysia.
To successfully attract high-value investments and move up the value chain, the country needs people with the necessary skills and knowledge to meet the demands of the jobs to be created.
