Synthesising Challenges and Opportunities in Human Resource Development for Productivity Enhancement: Toward a Framework for Malaysia’s High-Income Transition

Abstract

This paper provides an in-depth synthesis of Malaysia’s human resource development (HRD) strategies, highlighting their role in promoting productivity enhancement and supporting the nation’s transition toward a high-income economy. Malaysia has placed HRD at the centre of its economic planning through the 12th Malaysia Plan, the MyDIGITAL blueprint, and other policy initiatives. However, challenges remain in addressing the persistent issues of skill mismatch, limited TVET participation, talent mobility, and inclusivity in workforce development. Drawing from literature published between 2018 and 2023, supplemented by foundational studies that capture Malaysia’s HRD evolution, this review analyses the alignment between HRD policies, institutional mechanisms, and productivity performance. It proposes a conceptual framework that links HRD challenges, policy enablers, and productivity outcomes. The framework demonstrates how human capital development contributes to innovation, competitiveness, and sustainable economic upgrading. The paper concludes with policy recommendations and a research agenda focusing on HRD–productivity linkages, coordination mechanisms, and longitudinal policy evaluation.