Lai Wei Sieng says industry-linked training is crucial to ensure local workers benefit from growing investment opportunities in Melaka.
The state attracted RM28.96 billion in approved investments involving 752 projects between 2023 and 2025, potentially creating 25,100 jobs.
In 2025 alone, investment approvals reached RM14.69 billion, a 77.7% increase from RM8.26 billion in 2024, the state’s highest level in 22 years.
Of the total approved in 2025, RM8.43 billion came from foreign investments and RM6.26 billion from domestic investments, involving 312 projects expected to create 4,612 jobs.
Economist Lai Wei Sieng said the performance reflected growing investor confidence in the country’s administration, supported by Melaka’s strategic location, established industrial base and access to regional markets.
He said the state had the potential to move into higher-value manufacturing and services, particularly semiconductors, automotive components and green technology.
Although manufacturing investment fell from RM4.44 billion in 2024 to RM2 billion in 2025, approvals in the first quarter of 2026 more than doubled to RM396 million from RM184.4 million in the corresponding period a year earlier.
Lai said the drop in investments did not necessarily indicate weakening appeal, as large projects tend to be approved at different times.
Among the major investments was Texas Instruments’ second assembly and test factory, which opened in November 2025 and could attract up to RM5 billion in investments over time while creating up to 500 local jobs when fully operational.
For Nazrul Johari, 33, a Texas Instruments employee who previously worked as a technician in Negeri Sembilan, the opportunity has brought better pay and greater financial security for his family.
“This job allows me to better support my immediate and extended family financially,” he said, adding that Melaka residents stand to benefit from the additional job opportunities.
Another project is EP Manufacturing’s RM200 million vehicle-body painting facility in Alor Gajah, expected to begin operations in 2027 and support more than 200 jobs in automated manufacturing processes.
Preparing workers for higher-value industries
Recognising the need to prepare workers for such opportunities, the federal government has allocated RM5.6 million for electric vehicle (EV) training equipment at the Advanced Technology Training Centre Melaka in 2026 as part of a RM7 million project.
Another RM5.6 million was allocated to Universiti Teknikal Malaysia Melaka for academic equipment in renewable energy, artificial intelligence and advanced materials, under a RM41 million project.
Budget 2027 also highlighted the Melaka Centre of Excellence, which offers high-technology technical and vocational education and training (TVET) aimed at preparing local youths for skilled, better-paying jobs.
Nationally, the government allocated RM8 billion for TVET in 2027, including RM3 billion through HRD Corp to provide three million skills-training opportunities.
At TVETMara Jasin, deputy director for academic affairs Kamarul Ariffin Mahumdin said students were trained in automotive, electrical and mechanical fields, with industrial placements involving companies such as Hino, Komatsu and YTL.
He said more than 90% of students were recruited by the companies where they completed industrial training, illustrating how close collaboration with employers could provide a direct pathway into employment.
Lai said such partnerships were essential to ensure training programmes matched the technical, digital and professional skills required by increasingly sophisticated industries.
“If skills development does not keep pace with investment growth, companies may have to recruit skilled workers from elsewhere, while local residents are left with lower-skilled, lower-paid jobs,” he said.
He also highlighted the federal government’s New Industrial Master Plan 2030 and New Incentive Framework, which aim to attract higher-value investments that support better-paying jobs, technological development and stronger local supply chains.
Better wages, stronger careers
Melaka’s median monthly wage increased from RM2,528 in 2024 to RM2,773 in 2025, although it remained below the national median of RM2,940.
Lai said attracting higher-value industries must go hand in hand with improving workers’ skills and productivity through retraining and upskilling.
He said employers should also provide clear career progression opportunities to help young workers move into better-paid positions.
“This is important so that young people in Melaka do not have to move to other states to find better jobs and pay,” he said. - FMT
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