Docwmsnt of The World Bank FOR OCLAL USE ONLY .0g) 2CoG/-}49 Repwt N. 5411-MA STAFF APPRAISAL REPORT MALAYSIA SECOND INDUSTRIAL TRAINING PROJECT April 26, 1985 Projects Department East Asia and Pacific Regional Office l This docuumet bra a resIcd dibutiom and may be used by recip_atsoly in the perfomce of thdir eicI d dies Its coatems =my t oderwie be dois d wihout Wodd Bank aud_ zatom. CURRENCY EQUIVALENTS (April 1985) Currency Unit - Ringgit (N$) US$1.00 M$ 2.5 M$ 1.00 = US$0.4 FISCAL YEAR January I - December 31 ACADEMIC YEAR January 1 - December 31 ABBREVIATIONS USED EPRD - Educational Planning and Research Division ITI - Industrial Trainiug Institute MARA - Majlis Amanah Rakayat (Council of Trust for Indigenous Peoples) MOE - Ministry of Education MOL - Ministry of Labor MPS - Manpower Planning Section ~'YCS - Ministry of Youth, Culture and Sports PSD - Public Service Department RPD - Research and Planning Division TAVED - Technical and Vocational Education Division FOR OCLIAL USE ONLY MALAYSIA SECOND INDUSTRIAL TRAINING PROJECT STAFF APPRAISAL REPORT Table of Contents Page No. BASIC DATA .................................................. (iii) LOAN AND PROJECT SUMMARY ........... ................. (v) I. THE INDUSTRIAL MANPOWER AND TRAINING SECTOR ..........1....... Introduction and Overview ................................... 1 The Demand for and Supply of Industrial Manpower 1.......... 1 Expenditure on Industrial Training ........ -- ..... ...... 3 Shortcomings of the Present Industrial Manpower Training System ............................o....... 4 Deficiencies in the Supply of Industrial Manpower ........ 4 Regional Distribution of Training Facilities . 4 Management of Training ..... ................. 4 Manpower Development Planning .. ..............5 Government Strategy and the Bank's Role .......... 5 Rationale for Bank Involvement ......... -....... 7 II. THE PROJECT ..........7o ................. -.-. .- 7 ProjecL. Objectives and Scope ............ o ............... 7 Project Components . . .8 Technician Training . . . . .-...- ..... . ....... . 8 Skilled Worker Training .... ..........................8 Manpower Development Planning ...... o.............- 9 Project Implementation .... ........o ...........-....... 10 Status of Project Preparation . . . 11 Cost Estimates and Financing Plan .... ........ o......... o 11 Recurrent Costs ........ ................ . ..... ......... 15 Procurement .......... -- ............................... 15 Disbursements .............. o............................ 16 Reporting and Audit ........... o ...........o.......... 17 Benefits and Risks ..... o ..................... o............ 17 Critical Implementation Dates .. . 18 III. AGREEMENTS TO BE REACHED AND RECOMMENDATION -o ............. 19 This report is based on the findings of an appraisal mission that visited Malaysia in October 1984, following an earlier mission in April 1983. Mission members included C. Hunting (mission leader), R. Montague (architect), P. Dhillon (operations assistant) and L. Crabbe (vocational trainer, consultant). This document has a estricted distribution and may be used by recipients only in the performance of their official duties. Its contents maY not otherwise be dischced without World Bank authorization. Page No. TABLES IN TEXT 1. Summary of Project Costs by Component ......................... 12 2. Summary of Project Costs by Category of Expenditure ........... 13 3. Financing Plan ........................................... ...... 15 4. Project Expenditure by Procureme=t Category .......... ......... 16 APPENDICES 1. Comparative Education Indicators 2. Industrial Manpower Requirements and Supply Table 1: Employment by Sector, 1980-85 Table 2: Actual and Projected Employment by Sector, 1980-90 Table 3: Projected AnnuaL Requirements for New EmpLoyees by Occupational Group, 1980-90 Table 4: Enrollments in Existing Polytechnics, Industrial Training Institutes, and Other Technical and IndustriaL Training Institutions 3. Technician Training Table 1: Polytechnic Development Plans - Courses and Enrollments Table 2: Polytechnic Staffing, 1987-89, Additional Staff Needs by Year, Specialization and Grade Table 3: Technical Assistance and Polytechnic and TAVED Staff Training Programs 4. Skilled Worker Training Chart 1: Training Service Division: Manpower Department (HOL) Organization 1985 Table 1: Capacity of Industrial Training Institutes by Skill Area and Estimated Training Staff Requirements Table 2: Technical Assistance and Staff Training Program 5. Manpower Planning and Planning of Education and Training 6. Implementation Schedule 7. Project Costs Table 1: Detailed Project Costs Table 2: Project Expenditure by Year and Purpose Table 3: Unit Capital Costs and Areas for Project Institutions Table 4: Estimated Schedule of Disbursements 8. Selected Documents and Data Available in the Project File MAP IBRD No. 18710 - lLl - MALAYSIA SECOND INDUSTRIAL TRAINING PROJECT Basic Data /a 1980 1985 lb ( '000O) ( '000) General Total population 13,745 15,500 Labor force 5,109 6,000 Employment 4,817 5,600 GNP per capita (US$) 1,840 1,860 (1982) Percentage of corresponding Education by Level Enrollment age group Primary (Grades 1-6) 2,149,000 97 Secondary (Grades 7-11) 1,224,000 72 including technical and vocational 19,000 Postsecondary and Higher 200,000 Ic 10 Technician Training Enrollment Output Polytechnics (MOE) 4,360 1,300 Tunku Abdul Rahman College 1,000 300 Skilled Worker Training Industrial training institutes (MOL) 2,100 1,500 MARA skill training institutes 4,300 2,200 MYCS skill training centers 1,400 1,300 Vocational secondary schools (MOE) 14,000 7,000 /a Data for 1984 unless otherwise indicated. lb Estimates - Source: Mid-Term Review of the Fourth Malaysia Plan, 1981-85; March 1984. /c Includes approximately 50,000 studying overseas. - iv - Expenditure on Education and Vocational Training Recurrent: Percentage of GNP devoted to public education 5.6 expenditure (1983) Percentage of public recurrent expenditure devoted to 22.7 education and training of which: Ministry of Education expenditure 17.6 Other ministries 5.1 Percentage of public recurrent education 2.0 expenditure devoted to technical and vocationaL education Investment: Percentage of public development expenditure for 32.0 education and training 1981-85 devoted to technical and vocational education Percentage of public development expenditure 7.7 1981-85 devoted to education and training v MALAYSIA SECOND INDUSTRIAL TRAINING PROJECT Loan and Project Summary Borrower: Malaysia Amount: US$73.3 million equivalent Terms: Repayable in 15 years, including three years of grace, at the standard variable rate. Project Description: The project which would assist the Government to complete the long-term investment program in technician and skilled worker training started under the first Industrial Training Project (Loan 2145-MA), is designed to (a) increase the supply of technicians and skilled workers; (b) further improve the quality of training and strengthen management of training; and (c) improve manpower development planning. It would provide for: (i) construction and equipping of three poly- technics, at Kota Bharu, Kuching and Port Dickson, with a total enrollment of 4,500 and a planned annual output of about 2,200 technicians; intro- duction of new training courses to meet industrial needs, training for polytechnic staff, and strengthening of management; (ii) construction and equipping of two industrial training institutes, at Alor Setar and Kota Bharu, with a total training capacity of about 1,000 places and a planned annual output of about 1,300 skilled workers; introduction of new training programs to meet industrial needs, training for industrial training institute staff, and strengthening of management; and (iii) improve- ment in the manpower development planning capacity of selected governmental agencies. The project, from 1990 onwards, would increase the annual supply of technicians and skilled workers by about 2,200 and 1,300 respectively; upgrade train- ing and introduce new programs; strengthen manage- ment of training; improve the regional distribution of training opportunities and increase effective- ness of manpower planning and labor market infor- mation as an input to national planning. There is a risk of delay due to limited capacity of the Ministry of Labor to implement its project compo- nent; however, under the project the Ministry's staff would be strengthened and technical assistance would be provided to minimize that risk. - vi - Estimated Cost: Local Foreign Total :7USs million) - Technician training: Physical development 29.3 35.8 65.1 Course, staff and management development 0.8 8.3 9.1 Subtotal 30.1 44.1 74.2 Skilled worker training: Physical development 5.5 9.0 14.5 Course, staff and management development 0.4 4.7 5.1 Subtotal 5.9 13.7 19.6 Manpower development planning 0.0 2.5 2.5 Base Cost 36.0 60.3 96.3 Physical contingencies 3.6 5.3 8.8 Price contingencies 5.0 10.9 15.9 Total Project Cost 44.6/a 76.4 121.0 Financing Plan: Local Foreign Total --- (USs million) ---- IBRD 0.0 73.1 73.3 CIDA 0.0 3.1 3.1 Government 44.6 0.0 44.6 Total 44.6 76.4 121.0 Estimated Disbursements: Bank FY 1986 1987 1988 1989 1990 1991 ------- (US$ million) - Annual 1.5 9.5 20.0 24.0 13.0 5.3 Cumulative 1.5 11.0 31.0 55.0 68.0 73.3 /a Including approximately US$2.0 million in duties and taxes. MALAYSIA SECOND INDUSTRIAL TRAINING PROJECT I. The Industrial Manpower and Training Sector Introduction and Overview 1.01 To meet the demand for skilled workers and technicians in Malaysia, the Government, in 1982, initiated a major program of expansion and upgrading of training with assist V ce from the Bank under the first Industrial Training Project (Loan 2145-MA).- The project would complete that development program. The overall objective over the period 1983-90 is to expand polytechnic facilities for the training of technicians, from two polytechnics to seven, and to expand the industrial training institutes (ITIs) for skilled worker training, from five ITIs to ten. The Demand for and Supply of Industrial Manpower 1.02 Estimates of demand for industrial manpower are based on the projections for industrial dtyelopment and employment in the Mid-Term Review of the Fourth Malaysia Plan1 The original plan envisaged annual growth in industrial output of 10% and employment of 3.2% over the period 1981-85 (compared with an actual growth in employment of 3.92 p.a. over the period 1970-80). The manufacturing sector was expected to grow by 11.0% p.a. and to create 267,000 new jobs, with employment growing at 5.9% p.a. The global economic recession over the period 1981-83, which also had its concomitant impact on the Malaysian economy, contributed to the slow down in the growth of both output and employment during the early part of the Plan period. Overall, employment grew by 2.9% p.a. over the three years 1981 to 1983 compared with the 1981-85 target of 3.2%; but there were marked differences in the performance between sectors. In manufacturing, employment grew by only 2.2% and resulted in about 50,000 new jobs. Employment in construction grew by 8.9% p.a. - more than double the expected rate - and created nearly 80,000 jobs. Within the tertiary sector, the government services sector was the largest generator of jobs with employment growing at 6.5% resulting in 144,000 jobs; but most of the expansion took place in 1981 under a deliberate exercise to fill vacant posts, and by 1983 the effect of the partial freeze in new posts was to slow the annual rate of increase to 3.4% (Appendix 2, Table 1). 1.03 The Mid-Term Review of the Fourth Malaysia Plan recognizes that the original targets for output and employment will not be met. In revised projections the growth in manufacturing is, however, expected to pick up, with 1/ Malaysia: Staff Appraisal Report - Industrial Training Project (Report No. 3740a-MA), April 1982. 2/ Mid-Term Review of the Fourth Malaysia Plan 1981-85, March 1984. employment growing by 4.6Z p.a. over the two years 1984-85. Construction, transport and government services are expected to grow more slowly than in 1981-83 - but still to show growth over 1981-85 greater than that originally envisaged under the Plan. The total growth in employment for all sectors is expected to be about 760,000, equivalent to an annual growth of 3.OZ. 1.04 Projections of employment for 1985-90 are currentLy being prepared by the Government for incorporation in the Fifth Malaysia Plan. Assuming that the rates of growth by subsector for 1986-90 are the same as the revised estimates for 1981-85, employment is projected to increase by about 1.7 million over the decade, compared with the estimate of 1.9 million made in 1982 (Appendix 2, Table 2). 1.05 There is a lack of reliable survey data on the distribution and qualifications of technicians and skilled workers in industry on which to base estimates of future needs. The same approach has therefore been adopted as in the preparation of estimates in 1982, i.e., to take cross country comparisons of occupational structure by industrial sector. Using actual growth in employment for 1981-83 and estimated growth in 1984-90 and maintaining the same coefficients for occupational structure with an average annual attrition rate of 2Z, the annual incremental needs for technicians and skilled workers over the decade to 1990 are estimated to be of the order of 5,500 and 35,000, respectively (Appendix 2, Table 3). The estimated annual need for technicians is thus slightly lower than the 6,000 estimated in 1982 but that for skilled workers remains unchanged. 1.06 The Supply of Industrial Manpower. The sources of industrial skill and technician training are (a) polytechnics, which provide technician training; (b) ITIs and other skill training institutes and centers, which prepare school leavers for industrial employment and upgrade the skills of employed workers; (c) vocational secondary schools, which provide introductory skills training and produce semi-skilled new job seekers; and (d) in-plant training in industry. The polytechnics and vocational secondary schools are the responsibility of the Technical and Vocational Education Division (TAVED) of the Ministry of Education (MOE) and the ITIs are under the Training Service Division of the Manpower Department of the Ministry of Labor (MOL). 1.07 Technician training is mainly provided in two polytechnics, Ungku Omar (Ipoh) Polytechnic established in 1969 and Kuantan Polytechnic, which opened in temporary accommodation in 1977 and occupied its new building in late 1983. Two new polytechnics, which are being constructed under the first Industrial Training Project at Batu Pahat and Alor Setar, have opened with small enrollments in temporary accommodation. The total polytechnic enrollment in 1984 was about 4,400 mainly in certificate courses of 2-1/4 year duration arranged on a sandwich pattern including 5 months of industrial placement. About 60% of entrants are sponsored by employers, and about 80% of sponsored students are sponsored by government departments. There were over 25,000 qualified applicants in 1984 for the 2,000 places. The annual output of the polytechnics in 1983/84 was about 1,300. In addition, about 300 technicians graduated from the Tunku Abdul Rahman College and about 700 were estimated to have graduated from private institutions. The full development of the existing institutions including the establishment of the two new -3- polytechnics at Batu Pahat and Alor Setar will provide an annual output by 1990 of about 3,500 tec.hnicans (Appendix 2, Table 4). Thus, based on the revised projections indicated in para. 1.05, there would be an annual shortfall of about 2,000 technicians in 1990. 1.08 The annual output of new skilled and semi-skilled workers from public training institutions in 1983184 was estimated to be about 12,000. Of these, about 7,000 were semi-skilled secondary vocational school graduates. Only 1,500 completed training at the ITIs: the others were trained in centers operated by Majlis Amanah Rakayat (MARA) or by the Ministry of Youth, Culture and Sports (MYCS). Only about 100 existing workers were reported to have completed skills upgrading. The annual output from existing sources, including the three new ITIs at Ipoh, Kuantan and Malacca which are being built under the first Industrial Training Project, is expected to increase to about 17,000 by 1990 (Appendix 2, Table 4). Thus, based on the revised projections indicated in para. 1.05, there would be an annual shortfall of about 18,000 skilled and semi-skilled workers in 1990. 1.09 The Government has completed the initial phase of a study of manufacturing industry, financed under the first project, to examine training needs, cost-sharing and incentives and gther mechanisms for improving the participation of industry in training.3 The findings indicate that the present training in industry is generally unstructured and inadequate to provide the levels of practical knowledge and skills required to facilitate high product quality, improve productivity and ensure efficient use of plant and equipment. The study also confirms the need for the expansion and development of higher levels of pre-employment training and skills upgrading for existing workers. As a next phase of the study of manufacturing industry, further feasibility and other studies have been planned, also to be funded under the first project, covering (a) legislation to require employers to provide and finance training, (b) establishment of Training Councils- under a National Board to coordinate the planming, funding an! moniL .ing of trainina-, and (c) introduction of pilot schemes for training supervisors and advanced skills training and upgrading courses for electrical fitters and mechanics. Expenditure on Industrial Training 1.10 While, in terms of its total allocation of budgetary resources for education, Malaysia compares favorably with most countries in the Region, the share of its public recurrent expenditure on technical and vocational education and training has been low. It was estimated in 1984 to be only 2Z of total spending on education and training, compared with 1980 allocations of 7% and 6Z in Korea and Thailand, respectively. Only a small proportion of the cost of technician training is recovered by the polytechnic fees of M$400 p.a. which have not increased for about 10 years. No fee is charged by the ITIs. The Government will consider an increase in polytechnic fees and the 3/ Findings of W.D. Scott Ltd., on the study of Industrial Training Schemes reported at a meeting at MOL on October 24, 1984 and to be incorporated into the consultant's report. - 4 - introduction of fees for ITI training as part of the studies referred to in the previous paragraph. 1.11 Returns on Investment in Training. The social rates of return to investment in polytechnics and ITIs were estimated at appraisal of the first project in 1982 to be of the order of 16% and 12% respectively, confirming the shortage of qualified technical manpower. Since costs, salaries and employment prospects have not changed significantly since 1982, it is assumed that these favorable rates of return have been maintained. Shortcomings of the Present Industrial Manpower Training System 1.12 The main shortcomings of Malaysia's industrial training system are: (a) its inability to meet the demand for skilled and technician level manpower, particularly in the specializations required by growth industries; (b) less than optimum distribution of training facilities which does not fully reflect regional distribution and characteristics of industry; (c) weaknesses in the management systems for training; and (d) inadequate coordination in manpower development planning. 1.13 Deficiencies in the Supply of Industrial Manpower. The present training facilities, together with those being constructed under the first ,roject will not supply sufficient skilled manpower to meet the estimated needs. The annual shortfall in technicians and skilled workers is estimated as about 2,000 and 18,000 respectively by 1990, but to average about 3,000 and 22,000 per year, respectiveLy, over the period 1980-90. These estimates exclude the need for upgrading the skills and technical knowledge of existing workers which is likely to be as great a task as that of providing newly trained manpower. Recent inquiries in industry, as part of the technical assistance program under the first project, are reported to provide further evidence of shortage of appropriately trained manpower. Deficiencies in level of output are compounded by the lack of training in technologies and skills needed for the planned development of new process and manufacturing industries, particularly in the chemical, ceramics, plastics, electrical, electronics and fabricated metal products subsectors. 1.14 Regional Distribution of Training Facilities. Training facilities are not satisfactorily distributed across the country. For example, training is not available in some of the regions in which the Government Plans to develop industry in order to provide employment opportunities, such as the North East of Peninsular Malaysia and in East Malaysia. Also, there is no facility for technician training in the Selangor/Kuala Lumpur area, in which there is already a heavy concentration of industry. The location of training in industrial regions is necessary to facilitate close relationships with industry and the development of training relevant to industrial need. 1.15 Management of Training. Both the polytechnic and ITI systems are small and so far have not required elaborate arrangements for central coordination and management. The implementation of the current development plan to expand the polytechnics from two to seven and the ITIs from five to ten, and their subsequent operation will require effective organization and management. The programs of management development have started with tech- -5- nical assistance and staff training under the first project, with the aim of establishing effective internal management structures for the polytechnics and ITIs and strengthening the management capacity of both the TAVED of HOE and the Training Service Division of MOL. Within TAVED a new Development Unit is being formed, the Intake Unit is being strengthened to deal with the central administration of polytechnic admissions, and the Polytechnic Unit is assuming a stronger policy-making role. Within MOL the reorganization and strength- ening of the Training Service Division of the Manpower Department under the first project has not been fully implemented because of the Government's policy of restricting the growth of public services staff; the proposed project would address this question (para. 2.08). 1.16 Manpower Development Planning. The agencies concerned with manpower planning have limited capacity and lack coordination in their work. The Government, in 1982/83, reviewed its arrangements for manpower planning and defined more clearlv the responsibilities of the agencies concerned. It is taking steps to strengthen them and to improve coordination. 1.17 The main planning agencies are: (i) the Research and Planning Division (RPD) of the HOL (responsible for studies of private sector empLoyment and labor market); (ii) the Manpower Planning Section (MPS) of the Public Service Department (PSD) (responsible for manpower planning in the public sect.,r); and (iii) the Educational Planning and Research Division (EPRD) of the MOE (responsible for planning in the formal education system). These agencies are in need of strengthening through improvement in the qualiiications and experience of staff (including postgraduate training), strengthening of their data handling, and improvements in the design and impLementation of their planning systems. The project would address these problems. Government Strategy and the Bank's Role 1.18 The Government's objectives are to expand and raise the quality of skill and technician training to meet industrial manpower needs and to achieve a balanced distribution of training opportunities in relation to regional dis- tribution of population and industry. Under the revised Fourth Malaysia Plan the Government has allocated 32X of the total development expenditure on education and training to the development of technical and vocational education. The Government is also taking steps to strengthen the agencies responsible for planning and management of manpower development and training and is exploring the possibilities for industry to contribute more effectively to the provision of training. 1.19 The Bank, through several projects, has been active in the development of skilled worker and technician training in Malaysia. The establishment of a second polytechnic was financed under the Third Education Project (Loan 974-MA) of April 1974. The capacity for skills training was increased by the establishment of three new ITIs at Labuan, Kuala Trengganu and Johor Bharu, raising the total to fivc-, under the Fourth Education Project (Loan 1329-MA) of November 1976. -6- 1.20 A major program of expansion and upgrading of training was initiated with the first Industrial Training Project (Loan 2145-MA) signed in October 1982 and scheduled for completion by June 1987. The project provides for the design, construction and equipping of two new polytechnics (at Alor Setar and Batu Pahat' having a combined annual output of about 1,400 technicians, and three new ITIs (at Ipoh, Kuantan and Malacca) having a combined annual output of about 1,800 skilled workers, together with the design, site acquisition and site preparation for an additional three polytechnics and two ITIs. The project also included provision for a sizeable technical assistance program to help with the detaiLed planning of new training programs, and the upgrading of training and management systems. Fellowships were provided for skills and technical upgrading of staff and for management training. 1.21 in spite of a slowdown in public sector development in 1982-84, good progress aas been made with the implementation of the first project. Sites have been p-_pared for all five institutions which are to be built under this proje-.. Construction of the two polytechnics has begun and will start shortly for the three ITIs. All constructi3n is expected to be completed by December 1986 which would be only three to six months behind appraisal estimates. The start of technical assistance and trainirg programs was delayed but the programs are under way and are expected to be completed in accordance with appraisal estimates. New management systems are being set up, effective links with private industry established and training. programs revised in accordar.ce with industrial needs. Staff training has also started. The Government, with the assistance of consultants, has also started the program of studies of training in industry which are designed to lead to the adoption of policies to improve industrial participation in training (para. 1.09). Implementation of the ITI component has been somewhat slower than planned, mainly because the staff of the Development Unit of MOL has not been increased as expected and the existing staff has been occupied with the completion of the ITI cosponent of the Fourth Education Project. 1.22 The design and preparation for the additional three polytechnics and two ITIs to be constructed and equipped in a second phase has proceeded without delay. All sites for these institutions have been acquired: site preparation is almost complete for two of the polytechnics, about six months ahead of appraisal estimates. Site work for the third polytechnic and the two ITIs will be combined with construction. 1.23 Four Bank education projects have been completed: one has been audited, the second was exempt from audit and the completion reports on the other two are in draft. Overall, the projects have been successfully implemented, but with delays. Problems with site acquisition and construction, which were the main causes of delay in the first four projects, h.-ve been eliminated in subsequent projects by ensuring :hat projects siLes are acquired at an early stage in project processing, and by the employment of private architects in place of Public Works Department staff. Educational objectives have been achieved. A follow-up study of graduates from the Kuantan Polyt. -nic, established under the Third Education Project showed that they are readily absorbed into employment - this is attributed in part to the shortage of technicians and partly to the beneficial effect of the period of training in industry included in the courses. Staff training has played an important part - 7 - in earlier projects: experience with recruitment and training for Kuantan Polytechnic has been favourable and the turnover rate of polytechnic teachers is reasonable at about 5Z p.a. Rationale for Bank Involvement 1.24 The project would complete the long-term development program initiated under the first IndustriaL Training Project. It would complete the institutional development for which initial investment in the planning, detailed design and site acquisition and preparation was provided in the first project. The objectives of the development of technician and skilled worker training remain valid since shortages in the supply of technical manpower constitute a major bottleneck to economic and social development and are expected to persist at least until the end of the decade. II. THE PROJECT Project Objectives and Scope 2.01 The project wouLd assist the Government to continue with the investment program in technician and skilled worker training started with the support of the first project. The project would (a) increase the supply of technicians and skilled workers, with attention to the regional distribution of training facilities in relation to the distribution of population and industry; (b) improve the quality and strengthen the management of training; and (c) strengtien manpower development planning. 2.02 The project would provide civil works and related professional services, equipment and materials, furniture, and technical assistance to: (a) extend and upgrade technician training through the construction and eiiDping of three polytechnics, at Kota Bharu, Kuching and Port Dickson, to provide an annual output of 2,200 technicians; introduce new training programs; improve management of training and upgrade teaching and management staff; (b) extend and upgrade skilled worker training through the construction and equipping of two ITIs, at Alor Setar and Kota Bharu, to provide an annual output of about 1,300 skilled workers; introduce new training programs; improve management of training and upgrade training and management staff; and (c) strengthen selected key agencies responsible for manpower development planning, including the provision of 63 man-years of fellowship training and relevant equipment and facilities. -8- Project Components Technician Training (US$74.2 million excluding contingencies) 2.03 Physical Development. For the three polytechnics at Kota Bharu, Kuching and Port Dickson, pLanning, design and site preparation is being completed under the first project. Each polytechnic would have the capacity for a total enrollment of 1,500 equivalent full-time students, including 1,200 in certificate courses of 2-1/4 years duration and the equivalent of 300 in part- time specialist and diploma courses. The total enrollment in these new poLytechnics would increase to 4,500 by 1989 and by 1991 the new polytechnics would contribute an estimated annual output of 2,200 technicians to the overall annual output of about 6,400. 2.04 Course and Staff Development. The three polytechnics would be located in regions of existing and planned industrial development and courses would be related to regional industrial needs including new subjects and specializations, e.g., agricultural engineering, plant engineering, highway engineering, water engineering, timber technology, printing, and textiles (Appendix 3, Table 1). At full development the three new polytechnics would require an additional 450 teaching staff (Appendix 3, Table 2). Teachers' salaries, although comparable with salaries of engineers in other government departments, are not sufficiently attractive to draw a significant numi-er of experienced engineers from private industry to polytechnic teaching. esnce, it would be necessary for the MOE to recruit potential teachers from the graduates of secondacy schools, sponsor them in basic courses and provide further upgrading and experience. Senior staff would be drawn from the existing polytechnics. This is a satisfactory approach. At negotiations the Government agreed with the Bank a schedule for appointment of polytechnic staff. The project would support the expansion and upgrading of polytechnic staff by including 65 man-years of fellowships for overseas training for about 50 existing staff in selected specialist fields of postgraduate training and industrial experience, about 530 man-years pre-service degree training for about 130 new staff and about 290 man-years of fellowships for preservice diploma and first degree training in Malaysia for about 70 new staff. To assist in the development and initial impLementation of training in new technologies, and in the related in-service training of staff the project would provide specialist assistance on short assl3nments - 72 man-months foreign and 72 man-months local (Appendix 3, Table 3). 2.05 Management. As the polytechnic system grows, the management structures of the polytechnics and the arrangements for polytechnic management within the TAVED are evolving with the help of the technical assistance and training program under the first project. The proposed project would continue the program of strengthening management of the polytechnic system by the provision of 12 man-years of fellowships for management training overseas and 6 man-years for local training for senior staff of the polytechnics and the TAVED (Appendix 3, Table 3). Skilled Worker Training (US$19.6 million equivaLent, excluding contingencies) 2.06 Physical Development. For the two additional ITIs at Alor Setar and Kota Bharu, designs and site preparation are being completed under the first - 9 - project. The project would provide civil works, i.e., workshops, classrooms, administration and communal buildings and staff and trainee housing, equipment, furniture and professional services. 2.07 Course DeveLopment. Each of the new ITIs would have a training capacity of about 500 places and provide an output of about 650 skilled workers (Appendix 4, Table 1). The project would support the continued development of new and upgraded training methods and materials and the development of training courses in new specialist skills and technologies related to industrial needs in the regions in which the ITIs would be located. To assist in the detailed planning and initial implementation of training modules required in new skills and technologies and to provide the related in-service staff training, the project would provide about 216 man-months of technical assistance from overseas training specialists (Appendix 4, Table 2). 2.08 Staff and Management Development. The project would provide technical assistance and staff training for the management and staff development necessary to establish effective training programs including the promotion of, and support for, increased training by industry. The Training Service Division of MOL would be reorganized into two units - a Technical Unit and an Operational Unit - and would delegate to the ITIs some responsibilities for planning and development, including the deveLopment and upgrading of in-plant industrial training. The proposed structure of the Training Service Division is shown in Appendix 4, Chart 1. To implement successfully the proposed Second Industrial Training Project in paralleL with the first project, adequate additional senior staff would be required. The staffing of the Training Service Division would therefore be increased from the present 8 to 18 by 1987; staffing for each ITI would include at least 5 additional posts for development including in-plant training development. The two new ITIs would require about 90 new instructors, and as for the polytechnics (para. 2.04) these will have to be recruited and trained (Appendix 4, Table 1). Details of the main responsibilities and schedules of appointment of the new and reorganized posts of the Training Services Division and the training, planning and development posts in the ITIS were agreed with the Government. To support staff development, the project would provide 103 man-years of overseas fellowships for specialist skills and management training for senior instructors and other MOL staff and 200 man-years of local training in basic skills (Appendix 4, Table 2). The project would provide 60 man-months of consultant services from overseas specialists to assist in management and the setting up of effective industrial liaison and planning and development systems in the ITIs. Manpower Development Planning (US$2.5 million excluding contingencies) 2.09 The project would improve the capacity of relevant agencies to carry out manpower development planning through the financing of staff training, advisory services and supporting equipment and materials for: (a) the EPRD of the MOE; (b) the RPD of MOL, and (c) the MPS of the Establishment Division of the Public Service Department (Appendix 5). 2.10 EPRD (MOE): The project would finance 18 man-months of specialist consultant services to provide advice and in-service training for the Educational Planning and Research Division, in order to establish the operating - 10 - and data management systems for the proposed MOE computer system. In addition, 56 man-years of fellowships would be provided for overseas training of EPRD staff. The project would also finance the purchase of books, periodicals and reproduction equipment for the EPRD library/documentation center (Appendix 5, Table 2). 2.11 RPD (MOL): To improve the capacity of the Research and Planning Division of MOL to provide policy advice on the labor market, particuLarly within the private sector, the project would finance 24 man-months of specialist consultant services and 51 mcn-months of fellowships for training overseas, together with supporting microcomputers and software (Appendix 5, Table 3). 2.12 MPS (PSD): In order to strengthen the capacity of the Manpower Planning Section to plan for the overall requirements, supply and deployment of manpower in the public services sector the project would finance 18 man-months of consultant services and 68 man-months of fellowships for training and internship assignments overseas for MPS staff, together with supporting microcomputers and related equipment and software (Appendix 5, Table 4). Project Implementation 2.13 The project would be managed as follows: (a) the technician training component by the existing Development and Supplies Division of MOE in coordination with the TAVED; (b) the skilled worker training component by the Development Unit of the MOL Manpower Department; and (c) the planning component by the three divisions or sections directly involved. The Development and Supplies Division of MOE and the Development Unit of MOL are responsible for the management and implementation of the first project. Coordination of project management between the two ministries without a separate coordinating entity has not posed any difficulty for the Bank. With regard to the proposed planning component, EPRD would be assisted by the Development and Supplies Division of MOE and RPD by the Development Unit of MOL in respect of the procurement of equipment, materials, consultants and training and of the maintenance of accounts for the project activities. 2.14 In the case of technician training, the division of responsibilities for implementation between the Development and Supplies Division and TAVED would be the same as that established and working effectively for the first project. The staffing of the two divisions is adequate. 2.15 The delay in increasing the technical staff of the Development Unit of the MOL under the first project has been a major factor in delay in implementation of the MOL component of the first project. There are only four of the planned seven staff in post; the three vacant posts should be filled to strengthen staffing for equipment procurement, administration of technical assistance and training programs and liaison with other agencies and the Bank. The strengthened staffing together with the provision of technical assistance to support the Unit, particularly for procurement of goods and services, would be essential to ensure prompt and effective implementation of the ITI component of the project. The Government has agreed to appoint the three additional staff to the Development Unit: the appointments would be a condition of effectiveness of the proposed loan (para. 3.02). - 11 - Status of Project Preparation 2.16 The project is poised for implementation and would be implemented over a five-year period from mid-1985 to mid-1990 (Appendix 6). All project sites have been acquired. Site works and infrastructure, financed under the first project, have been compLeted for the Kuching Polytechnic site and are expected to be compLeted for Kota Bharu Polytechnic by May 1985. Tendering for their construction began in January 1985 and construction is planned to start in mid- 1985; contractors have already been prequalified. The site works for Port Dickson Polytechnic will be combined with construction in a single contract to be tendered in early 1986. Detailed design of the two ITIs at Alor Setar and Kota Bharu has been completed. Tenders for construction and site works will be invited in May 1985 and construction is planned to start in mid-1985. Master equipment lists have been agreed for the main subjects. Cost Estimates and Financing Plan 2.17 The total cost of the project is estimated at US$121.0 million equivalent. The estimated cost by project component is summarized in Table 1, and by category of expenditure in Table 2. (Detailed costs are given in Appendix 7, Table 1 and project expenditure by year and purpose in Appendix 7, Table 2.) - 12 - Table 1: SUMMARY OF PROJECT COSTS BY COMPONENT Foreign Local Foreign Total Local Foreign Total as Z of --- (M$ million ) -- (USs million) -- Total Technician Training Physical Development: Kota Bharu Polytechnic 23.0 29.1 52.1 9.2 11.6 20.8 55 Kuching Polytechnic 27.5 32.4 59.9 11.0 13.0 24.0 56 Port Dickson Polytechnic 22.9 27.8 50.6 9.1 11.1 20.3 54 Course, Staff and Management Development 1.9 20.8 22.8 0.8 8.i 9.1 92 Subtotal 75.3 110.1 185.4 30.1 44.1 74.2 59 Skilled Worker Training Physical Development: Alor Setar ITI 7.4 12.4 19.8 3.0 5.0 7.9 63 Kota Bharu ITI 6.3 10.0 16.3 2.5 4.0 6.6 61 Course, Staff and Management Development 1.0 11.8 12.8 0.4 4.7 5.1 92 Subtotal 14.7 34.2 48.9 5.9 13.7 19.6 70 Manpower Development Planning EPRD (MOE) 0.0 3.5 3.5 0.0 1.4 1.4 99 RPD (MOL) 0.0 1.5 1.5 0.0 0.6 0.6 98 MPS (PSD) 0.0 1.4 1.4 0.0 0.6 0.6 99 Subtotal 0.1 6.4 6.4 0.0 2.5 2.5 99 Baseline Cost 90.1 150.7 240.8 36.0 60.3 96.3 63 Contingencies Physical 8.9 13.2 22.0 3.6 5.3 8.8 60 Price 12.6 27.2 39.8 5.0 10.9 15.9 68 Subtotal 21.4 40.4 61.8 8.6 16.2 24.7 66 Total Project Cost 111.5 191.1 302.6 44.6 76.4 121.0 63 Note: Total project costs include approximately M$5.0 million (US$2.0 million) in duties and taxes. - 13 - Table 2: SUMMARY OF PROJECT COSTS BY CATEGORY OF EXPENDITURE Local Foreign Total Local Foreign Total --- (MA million ) --- --- (USS million) Construction: Academic and communal facilities 43.9 25.3 69.2 17.6 10.1 27.7 Boarding 5.4 3.1 8.5 2.2 1.2 3.4 Staff housing 18.1 10.4 28.5 7.2 4.2 11.4 Subtotal 67.4 38.8 106.2 z7.0 15.5 42.5 Furniture 12.5 4.5 17.0 5.0 1.8 6.8 Equipment and materials 7.2 69.1 76.3 2.9 27.6 30.5 Subtotal 19.7 73.6 93.3 7.9 29.4 37.3 Technical Assistance Specialists 0.4 9.9 10.3 0.2 4.0 4.2 Fellowships 2.5 28.4 30.9 1.0 11.3 12.3 Subtotal 2.9 38.3 41.2 1.2 15.3 16.5 Base Cost 90.1 150.7 240.8 36.0 60.3 96.3 Contingencies 21.4 40.4 61.8 8.6 16.2 24.7 Total Project Cost 111.5 191.1 302.6 44.6 76.4 121.0 Note: Discrepancies in totals are due to rounding. - 14 - 2.18 Base costs refer to April 1985 prices. Estimated construction costs are based on recent tender prices for the two polytechnics being estabLished under the first project, which incLude similar designs for classroom and laboratory buildings, workshops and student and staff housing, tender prices for Kuching Polytechnic, and on quantity surveyors' estimates of costs for the ITIs. Estimated equipment costs are based on master-lists and the recent cost of polytechnic and ITI equipment. Furniture costs are estimated at about 15% of construction costs. Based on MOE's past experience, the estimated cost of equipment and furntiure for the Kuching Polytechnic in Sarawak will be significantly higher than in Peninsular Malaysia due to transportation and higher labor costs. Technical assistance and training fellowship costs are estimated on the basis of recently negotiated contracts under the first project. Customs duties and taxes on building materials are estimated to amount to about 1.7% of total project costs. Equipment and teaching materials imported under the project would be exempt from duties and taxes. 2.19 The unit areas and costs for the project institutions are in line with recent Bank median values for comparable facilities (Appendix 7, Table 3). 2.20 The foreign exchange component of US$76.4 million, representing about 63% of the total estimated cost, has been calculated on the basis of the following estimated foreign exchange percentages (with taxes and duties excluded): civil works - 35%; professional services - 20%; equipment and library and reference materials - 901; furniture - 25Z; foreign consultants and overseas training fellowships - 100%; and local consultants and fellow- ships - 20%. Physical contingencies of 10% have been allowed for construc- tion, furniture, equipment and materials and professional services and 5X for technical assistance. Price contingencies which are equivalent to about 15% of base costs plus physical contingencies were calculated in accordance with the implementation schedule and the following expected average annual increases: local and foreign - 5.0% for 1985, 7.5Z for 1986, and 8.0% for 1987 to 1990. 2.21 The Canadian Government, acting through the Canadian International Development Agency (CIDA), intends to make a grant of about Canadian $4 million (US$3.1 million) to finance part of the technical assistance and staff training for the skilled worker training component. The memorandum of understanding is expected to be signed in early July 1985 and the grant will be effective as soon as soon as the Bank loan becomes effective. The plan of operation for the technical assistance has been agreed between the Bank, CIDA and the Government. The proposed Bank loan of US$73.3 million would equal the balance of the foreign exchange component and would finance 61% of the total project costs excluding duties and taxes. The proposed financing plan is shown in Table 3. - 15 - Table 3: FINANCING PLAN IBRD Government IBRD CIDA Total share Category of expenditure --------- (US$ million) - (Z) Civil works (incliding professional services) 30.9 16.7 - 47.6 35 Equipment, furniture and materials 9.8 33.8 - 43.6 78 Technical assistance - 16.9 3.1 20.0 85 Unallocated 3.9 5.9 - 9.8 60 Total 44.6 73.3 3.1 121.0 60 Recurrent Costs 2.22 The recurrent expenditure on education and training represents 22.7% of total federal recurrent budget and 5.6% of GNP. The estimated incremental annual recurrent cost of the proposed project when all institutions are operating at full capacity is about US$4.5 million (at 1984 prices) for the technician training component and US$1 million (at 1984 prices) for the skilled worker training component. These costs would represent about 0.25Z of the MOE operating budget and 2.3% of MOL's in 1990 assuming these budgets grow at about 5% p.a. Procurement 2.23 Civil works contracts of more than US$2.5 million would be awarded on the basis of ICB in accordance with Bank guidelines. Civil works contracts for less than US$2.5 million would be awarded on the basis of competitive bidding advertised locally in accordance with government procedures which are acceptable to the Bank. Equipment and furniture would be grouped to the extent possible into attractive bid packages to facilitate bulk procurement. Packages estimated to cost US$200,000 or more (estimated value US$30 million) would be awarded on the basis of ICB in accordance with Bank guidelines. In the comparison of bids for equipment and furniture, local manufacturers would be extended a margin of preference of 15% of the c.i.f. costs of competing imports or the actual customs duties, whichever is lower. Equipment and furniture packages estimated to cost less than US$200,000 (estimated value US$16.3 million) and which, because of content are not expected to interest foreign suppliers, would be awarded on the basis of competitive bidding advertised locally in accordance with government procurement practices which are acceptable to the Bank. Miscellaneous items in packages not exceeding US$25,000 in value and aggregating to not more than US$3 million equivalent would be purchased on the basis of quotations from a minimum of three suppliers or through Treasury contracts for bulk purchase. Books, computer software and other instructional materials would be procured through direct purchase after negotiation for the lowest price. Table 4 provides a breakdown - 16 - of project expenditure by procurement category. Prior Bank review of bidding documents and proposed contract awards would be required for all contracts for civil works, equipment and furniture awarded on the basis of ICB, estimated to cost a total of about US$80 million including contingencies 66X of the value). Table 4: PROJECT EXPENDITURE BY PROCUREMENT CATEGORY (US$ million) Total cost including Category of expenditure ICB LCB Other contingencies Civil works 49.2 2.5 - 51.7 (17.3) (0.9) - (18.2) Equipment, furniture and materials 30.0 13.0 5.5 48.5 (24.4) (9.1) (3.9) (37.4) Technical assistance - - 20.8 20.8 - - (17.7) (17.7) Total 79.2 15.5 26.3 121.0 (41.7) (10.0) (21.6) (73.3) Note: Figures :- oarentheses refer to loan allocations. 2.24 Technical Assistance. Under the first Industrial Training Project major technical assistance and staff training contracts were signed with con- sultants in accordance with Bank guidelines. Similarly, a series of contracts should be arranged for the technical assistance and overseas training under this project. Terms of reference, timetables for consultant services and overseas and local training and criteria and procedures for selection of staff for the award of fellowships have been agreed. Disbursements 2.25 The proposed loan of US$73.3 million would be disbursed over a period of six years. Disbursements would be made on the basis of (a) 35Z of the cost of civil works and professional services; (b) 100% of the c.i.f. cost of imported equipment, furniture and materials, 100% of the ex-factory cost of locally manufactured equipment, furniture and materials, 60Z of the cost of imported equipment, furniture and materials procured locally; and (c) 100% of the cost of consultant services and fellowships. To the extent practicable, withdrawal applications would be aggregated in amounts of US$100,000 or more prior to submission to the Bank for reimbursement out of the proceeds of the loan. In view of the satisfactory budgetary procedures and financing for earlier education and training projects it was agreed to accept the - 17 - earlier education and training projects it was agreed to accept the Government's preference not to establish a special account and matching operating account before it has weighed the advantages and disadvantages in more detail. Disbursements for miscellaneous equipment and furniture items, books, computer software and other instructional materials and local fellowships would be based on statements of expenditure. Supporting documents would be retained by the project implementing units and made available for review by visiting Bank missions. All other disbursements would be made against full documentation. 2.26 The disbursement schedule (Appendix 7, Table 5) has been based on the implementation schedule and the experience with disbursement in education projects in the Region. The profile for the project shows a higher rate of disbursement than the historical average because of the advanced state of project preparation. To allow sufficient time for submission of final withdrawal applications following the scheduled completion date of June 30, 1990, the Closing Date would be June 30, 1991. Reporting and Audit 2.27 Project accourts would be maintained by the MOE Development and Supplies Division, by the MOL Development Unit and, in respect of the MPS planning subcomponent, by the Administrative Division of the PSD. The accounts would be maintained in accordance with sound accounting practices satisfactory to the Bank. The units concerned would submit to the Bank within six months of the end of the Government's fiscal year, statements reflecting the financial performance and position of the project together with independent auditors' reports including separate audit of accounts relating to disbursement against statements of expenditure. Six months after the Closing Date, the MOE Development and Supplies Division would submit to the Bank a project completion report covering all project components. Benefits and Risks 2.28 The main benefits would be (a) an increase and improved geographic distribution in the training capacity and supply of suitably qualified technicians and skilled workers for industry; (b) improved management capacity of the poLytechnics and ITIs; and (c) improved capacity for planning of human resource development. By 1991 the output from the three polytechnics would be about 2,200 technicians annually, representing about 33% of the total annual supply. The two ITIs would contribute about 1,300 to the total annual output of the ITI system of about 7,200 skilled workers, i.e., about 20% of that output. These increases would contribute substantially to alleviating one of the major constraints to the country's industrial development. The project would also improve the regional distribution and increase the opportunities for further education and training for secondary school leavers. The assistance to agencies responsible for manpower planning in the public and private sectors would result in the availability of improved labor-market and employment informatien as a basis for policy decisions relating to the utilization and supply of manpower. - 18 - 2.29 The main risk to the timely achievement of the anticipated benefits is MOL's capacity to ymplerent the ITI component on schedule. This has caused delay in the implementation of past projects. The requirement for strengthening the staff of the MOL Development Unit and the technical assistance are designed to minimize that risk (para. 2.15). Critical Implementation Dates 2.30 The following are the expected dates for critical activities in project implementation: Expected date Activity Start Completion Construction Polytechnics: Kota Bharu July 1985 June 1987 Kuching July 1985 Septemberl987 Port Dickson July 1986 June 1988 ITIs: Alor Setar September1985 February 1987 Kota Bharu September 1985 February 1987 Consultants Technician training July 1987 June 1989 Skilled worker training July 1986 June 1989 Manpower development planning July 1985 June 1988 Fellowships Technician training July 1985 June 1990 Skilled worker training July 1985 June 1990 Manpower development planning July 1985 June 1989 - 19 - III. AGREEMENTS AND RECOMMENDAIION 3.01 During negotiations agreement was reached on: (a) schedules for appointment of staff for the polytechnics (para. 2.04); (b) the posts for the Training Service Division of MOL and the training, planning and development positions in the ITIs, including the schedules for appointment of staff (para. 2.08); and (c) schedules for the engagement of consultant services and implementation of the staff training programs and criteria and procedures for selection of staff for the award of fellowships (para. 2.24). 3.02 The appointment of staff to fill the three vacant technical positions in the MOL Development Unit would be a condition of loan effectiveness (para. 2.15). 3.03 Subject to the above conditions, the proposed project would consti- tute a suitable basis for a Bank loan of US$73.3 million equivalent to the Government of Malaysia at the standard variable rate for a term of 15 years including a grace period of three years. -2- l CIQ t IX_ IJ toumurttIctol "aP. 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(8- (15- C12- (317 (1.1- (6. (2- (- C0a01 10.0) 45.0) 94) ) 36) 9) 119) 9) 7) 67.0 99 36) ) 29.0) 9.orrll.: Upper: . 20ME 52 35 21 30 96 7 42 o as5 23 10.4 pIdliai 4.0 15.5 4 327 13 sz 83 60 35 12 61 25 21 1.7 1.e.e 3.0 10.5 37 33 13 2 56 35 27 7 40 13 13 I0 QOrtlle .ulation: 1.1 5.3 7.5 9.0 4.0 23.0 2n.5 22.n 7.5 6.4 22.S I5.5 8.5 4.* Pa: 4.5 16.1 3 6 23 8 5 75 s0 36 16 Go 31 21 *.O Scoodned bme±arow 1.1 7.4 13 l 7 30 26 25 13 13 27 23 7 7. Ilft_ * 4.n 15.5 43 28 19 53 83 61 35 12 63 25 22 3.7 solS: P3o0wS: I - tDII? ru NM ASN OP eUS DAT D AM UPA0AVtA A - DAM PI:01 13S1T3 3 - VIIU*W OW MAa. (OM) ONLY 9NZI NIL OR lCCIWxZ S - VaTUN HOM 62r3KW 3M T14 T - PM A331l3131 SS97 on1 7 Damll3 OPESTm.A W - CO1S 11Ce U - P03C 601ZINnU O3 * INCL.3 PA*1-T. 327331 P - _ CP - 1XL3a mS-AE STOIM, X- Iw SO0WA S300m: Z - lllQ3 03a! GMT Co1me I aed 2: Word ank A6t_ r 13331 cIsl-eo. 6D.1- 3 to 14: 1333 Slnn6.. C-o_t sources seller Oen4:., St3.tatle.1 Tearheok. Ompare tt, IdC.etl-t- orteo S,entbr1 R. t.......ts.. of arivm edtSen .ycte, .3d a.lyse of relatlS statm of eductional deelop t oel_enb._S Ce eLs.. A-Wr. en tbk table Ike present dots. erns_.t I t.n_rltsom c omd be *b rose ea.d it muest castleSe. 11 se s the aloe. t"Is. t ew lee. ceollcted lar_ely ky tek mlsdo. fri oe_r.aot s*oer; tk. rem±der o_re staf cetlmtes or date r rneeto. 1fort kw.. ke mie to ot_n _r ine deflutlenm _ed. .Ithln , lit... to I the accoracy of the dat. c- lrthelee.. _eb data aetll Imperfecet to eseal _o ad thme 1rbo Is S _hing to So_r. t_- pregrse.tely ea the ccelee of Lt. opertiCeal mark. In heu cew of the dat. the fellaue qeelotiam aheeu be havte I mi.d: (1) dMcatiS_- - de.? md 1. Cth tabts Includes all odccl. a.d trolelon. both forest ad _se-f ormal (2) -PrImy edecati-o refer. to edcatlo- at the flest l..l _d -.acod_rf decatS_ re ofe to ell adcS_ia. mt the ae_ouers 1-_1 remrdlaee ef type (e.g.. gernere. trehole l. aariltwrol). C3) Litrcy ate- (ctl. 6) are oftn okbtalmd fre. rsntry consoe. Tr o-ty coe_mri eetimy ar,e only ap,e.istom sed It is debtful thet not cultuer defiultinl of Smtcr he bke fullmd elottly. (A) .akblic expe_it.rr In edetla. (cola. A and 5) rfore to all apital and recorre-t axpeediare dezeted to edecatie by publlc ane iqeel-Iblle 90iae. (3) Ehnrollment retioa (eel.. 7. 12 and 14) roetr to ockoal ler nd *r the percetw1" of aliglI ediade _roellad 1tl1-clme in the aporepriate .ethol. pvblSe aid priae ky la-_. Tber ar ortes ubkect to a _d. mm"u of errdr 1. the deelapug eutmrI e_d_ to Variations In the wcmrycr of bkilc d C (I.e.. aga-Spec poP.Dtlo.ten amd surellsonts). brollsMt (inure. freqouently m bL-br tSm_ timember of s acteetly is e- ceel. O_r_91d .todents Sho InceuSioen Is indlatad by footnote. ale. ce inflate the ratiS. MALAYSIA SECOND INDUSTRIAL TRAINING PROJECT Industrial Manpower Requirements and SuPP1Y Employment by Sector, 1980-85 1980 1983 1985 ! eat,L Average annual growth rate (2 -U0 %T O -UUU000 1981-83 1984(85 1981-85 FIP a Prim r Agriculture, forestry, live- stock and fishing 1,911 39.7 1,941 37,0 1,981 35.5 0.5 1.0 0,7 0.7 Secondary. Mining and quarrying 81 1.7 65 1,2 63 1.1 -7.0 -1.2 -4.7 0,5 Manufacture 751 15.6 800 15.3 876 15.7 2.2 4.6 3.2 5,9 Construction 268 5.5 346 6.6 387 6.9 8.9 5,R 7.6 4.4 Transport, storage and commu- nications 199 4.1 242 4.6 272 4.9 6.7 6.1 6.5 4.4 Subtotal 1,299 26.9 1,453 27.7 1,598 28.6 3.8 4.9 4.2 5.0 Tertiary Electricity, gas and water 51 1.0 57 1.1 59 1.1 3,8 2.1 3,1 4.4 Wholesale and retail trade, hotels and restaurants 598 12.4 662 12.6 719 12.9 3,5 4.2 3.8 3,0 Finance, insurance, business services 46 1.0 51 1.0 55 1.0 3.0 3,9 3.4 4.7 Government services 693 14.4 837 16.0 896 16.1 f6.5 3.4 5,3 4.6 Other services 220 4.6 245 4.6 268 4.8 3.6 4.7 4.0 4.5 Subtotal 1,608 33.4 1,852 35.3 1,997 35.9 4.8 3.8 4.4 4.6 Total 4,818 100.0 5.246 100.0 5,576 100.0 2.9 3.1 3.0 3.2 /a Original Fourth Malaysia Plan estimate. Source: Mid-Term Review of the Fourth Malaysia Plan, 1981-85, Government of Malaysia, 1984. Tables 4.8 and 4.10. -23- =psi 2 Table 2 MALAYSIA SECOND ICNUSTRIAL IRAINIIC PROJECT Industrtal Ibapower Requirements and Supply Actual and Projected EKploZet by Sector, 1980-90 1985 /a 1990 lb Total increase Avere annual increase 1980 1983 (estimated) (estiusated) 1980-90 '000 Z /b ( '000) Primary Agriculture. forestry, live- stock and fishing 1.911 1.941 1,981 2,053 142 14.2 0.72 Secondary Mining and quarrying 81 65 63 50 (59)/c -31 (-22) -3.1 (-2.2) -4.7 (-3.0) M_nfacture 751 600 876 1,025 274 27.4 3.2 Construction 268 346 387 558 290 29.0 7.6 Transport. storage and conum- nlcations 199 242 272 374 175 17.5 6.5 Subtotal 1.299 1.453 1,598 2,007 .(2,016) 708 (717) 70.8 (71.7) 4.4 Tertiary Electricity, gas and water 51 57 59 69 18 1.8 3.1 Wbolesale and retail trade, horels and restauranuL 598 662 719 868 270 27.0 3.8 Flnance, Insurance. business mervices 46 51 55 64 18 1.8 3.4 Covernment services 693 837 896 1,161 (1,059) 468 (366) 46.8 (36.6) 5.3 (4.3) Other services 220 245 268 326 106 10.6 4.0 Subtotal 1,608 1,852 !,997 2,488 (2,386) 880 (778) 88.0 (77.8) 4.5 Total 4.818 5.246 5.576 6,548 (6,455) 1.730 (1,637) 173.0 (163.7) 3.1 /a Kid-Term Review of Fourth Malaysla Plan. /b Misslon estimates: based on assuaption that growth by subsector 1986-90 will take place at the ame average rate as for the period 1980-85. /c The values in parentheses are based on the assumption that for the mining and Government service sectors, the growth 1986-90 vill be at the same rate as that for 1984/85. MALAYS IA SECOND INDllSTRIAL TRAINING PROJECT Industrial Manpower Requirements and Supply ProJected Annual Requirements for New Thmployees by Occupatlonai Group, 19VU-9U la Estimated annual requirement /c Technicians Skilled workers Annual growth Economic Replace- Economic Replace- Sector 1980-90 /b growth ment /d Total growth mont Ic Total Primary 14,200 40 100 140 400 960 1,360 Secondary 70,800 (71,700) 3,040 (3,080) 1,120 4,160 (4,200) 15,580 (15,770) 5,720 21,300 (21,490) Tertiary 88,000 (77,800) 880 (780) 320 1,200 (1,100) 8,800 (7,800) 3,22n 12,020 (11,020) Total 173,000 (163.700) 3,960 (3 900) 1,540 5 500 (5.440) 24.780 (23.970) 9.900 34.680 (33.870) 9 /a The needs for upgrading of existing workers are not included in these estimates. 7T Obtained from Table 2: the values in parentheses are based on the assumption that for the mining and Govern- ment service sectors, the growth 1986-90 will be at the same rate as that for 1984/85. /c The same occupational coefficients have been adopted as those used in the 1982 appraisal: Coefficient Sector Technicians Skilled workers Primary 0.0025 0.025 Secondary 0.043 n,22 Tertiary 0.01 0.1 See Table 1.2 of Staff Appraisal Report: Malaysia, Industrial Training Project, April 1982, Report 1740a-MA. Note: Annual requirements have also been esiimated by subsector using average values for occupational coefficient for relevant technician level and skilled workers - see working papers. /d Taken as 2% p.a. (of the 1980 stock). - 25 - Appendix 2 Table 4 MALAYSIA SECOND INDUSTRIAL TRAINING PROJECT Industrial Manpower Requirements and Supply Enrollments in Existing Polytechnics, Industrial Training Institutes and Other Technical and Industrial Training Institutions Enrollment Output 1980 1984 1990 1980 1984 1990 Technician Training Polytechnics Ungku Omar (Ipoh) 1,560 2,300 2,300 530 900 1,000 Wuantan 450 1,700 1,700 130 400 700 Batu Pahat - 240 1,500 - - 700 Alor Setar - 120 1,500 - - 700 Subtotal 2.010 4.360 7,000 660 1.300 3.100 Tunku Abdul Rahman College (certificate level) 450 1,000 1,000 230 300 400 Private technician-level institutions /a 1,500 1,500 1,500 700 700 700 Total Technicians 3,960 6.860 9,500 1,590 2,300 4.200/c Skilled and Semiskilled Workers Industrial training institutes 1,500 2,100 4,000 1,000 1,500 4,800 MARA skill training institutes 4,200 4,300 5,000 900 2,200 3,000 Skill training centers (MYCS) 1,000 1,400 1,500 600 1,300 1,300 Vocational secondary schools /b 12,700 14,000 26,000 6,000 7,000 8,000 Total Skilled and Semiskilled Workers 19,400 21.800 36,500 8.5no 12,000 17.100 /a Estimated as about one-third of total enrollment :_d output of these institutions; the remaining two-thirds assumed as general education qualifications. /b Output is only semi- or partially skill-trained; enrollments based on Mid-Term Review Report. /c Estimated output includes about 700 business studies graduates. - 26 - Appendix 3 Tanle 1 - MALAYSIA SECOND INDUSTRIAL TRAINING PROJFCT Technician Training Polytechnic Development Plans - Courses and Fnrollments Port Kota Dickson Rharu REuching Full-Time Certificate Courses Mechanical IEngineering: General 12n 120 120 Production engineering 60 - Automotive and diesel 60 60 fin Air-conditioning and refrigeration 60 60n 6( Plant engineerinR 60 _ 6n Agricultural enRineerinR g 6_ Subtotal 360 300 3n0 Electrical Engineering: Power 120 12n 120 Electronics and comnunications 120 12n 60 Instrumentation and control 60 - 6n Computer technoloty 60 - - Subtotal 360 240 240 Ci7il Fngineering: Construction 180 120 12n Rydraulics/public works - 6n - Highways - 60 - 'uilding services - - 60 Land survey - 60 Subtotal 1RO 24n 240 Comwerce: Business studies 60 120 60 Accountancy (Diploma) 120 - 60 Accounts assistant (Certificate) - 60 - Secretarial 60 - 6n Data processing 60 Subtotal 300 isn iRO Process Technologies: Printing - 120 12n Textiles - 12n Timber 12n Subtotal- 240 240 Total 1,2no 1,mno 1,200 Part-Time Short Specialist and Xiploma Courses, Full-Time Equivalent F.nrollments Mechanical 60 120 3n Electrical 60 - 12n Civil 12n 120 60 Commerce 60 30 30 Other including process technology - 30 60 Total 300 In 3nn GRANn TOTAL 1,500 1,500 1,500 -27 - Appendix 3 Table Z X1AAYSIA SECOND INDUSTRIAL TRAINING PROJECT Technician Training Polytechnic Staffing, 1987-89 Additional Staff Needs by Year, Specialization and Grade /a 1987 1988 1989 Total DI T1172 D T1/2 D1 T1T/T D TI/Z Civil Engineering 13 7 22 11 7 4 42 22 Land survey 1 1 2 1 1 0 4 2 Building services 1 1 2 1 1 0 4 2 Electrical Engineering 10 5 15 8 5 3 30 16 Electronics 5 3 10 4 3 2 18 9 Instrumentation/control 3 1 4 2 1 1 8 4 Computer technology 2 1 2 1 2 1 6 3 Mechnical Engineering 10 5 20 8 6 3 36 16 Automotive 4 2 6 3 2 1 12 6 Plant engineering 3 1 4 2 1 1 8 4 Air-conditioning and 3 2 6 3 2 1 11 6 refrigeration Agricultural engineering 1 1 2 1 1 0 4 2 Production 1 1 2 1 1 0 4 2 Process Technologies: Chemical engineering 1 0 0 1 1 0 2 1 Textile engineering 3 1 4 2 1 1 8 4 Printing technology 5 3 7 3 3 1 15 7 Timber 3 1 4 2 1 1 8 4 Commerce: Business Administration 8 3 10 6 4 2 22 11 Secretarial 3 1 4 2 1 1 8 4 &Acountancy 5 3 8 4 3 1 16 8 Data Processing A 1 2 1 1 0 4 2 Other General/Science/ 14 6 14 6 2 3 30 15 Mathematics Total 300 150 /a For calculation of staffing needs, see Working Papers. 7W DI: Degree/level 7TE T1/2: Diploma and certificate levels. - 28 - Appendix 3 Table 3 M4ALAYSIA SECOND INDUSTRIAL TRAINING PROJECT Technician Training Technical Assistance and Polytechnic and TAVED Staff Training Programs Total Program Year number of Purpose participants 85/86 86/87 87/88 88/8q 89/90 Total Fellowships (manryears) Local: 4-year diploma and degree pre- service for polytechnic staff 72 20 72 72 72 52 288 Short (3 months) management for polytechnic and TAVFD 24 2 2 2 - - 6 Total Local 96 22 74 74 72 52 294 Overseas: 4 - year (average) degree pre--service 133 35 133 133 133 98 532 1 to 2-year post-graduate and specialist courses for poly- technic and TAVErI staff 50 - 24 20 18 3 65 6-month-1-year management course 8 - 2 2 2 - 6 Short (3 months) management course 24 2 2 2 - - - 6 Total Overseas 215 37 161 157 153 101 609 Consultants (man-months) Local { Implementation of 4 to 6 - - 42 30 - 72 { new Foreign { specialist courses 4 to 6 - - 30 42 - 72 Appendix 4 - 29 - Chart 4.1 MALAYSLA SECOND INDUSTRIAL TRAINING PROJECT Trauiing Servce Division: Manpow Deportment (MOL) Organkdation 1985 Dwecor DI ujl DiectIr Technical Unit Opeia Unit I Head (Senior Instrucc) I Head (Senior lnranjcr) 6 Techiccd Saff (Gadc I) 6 Teclwwcd Staff (Glade I) I I I I I ~~~~~~~I I IFnk Eitg Induridl Tralingl New Idosril 1rrcin Intiues Institutes 1. KuoloLurnuw 1. Ipoh 2 i'rao 2 Kuantgn Loan 2145-MA 3a Johor 3. Melaka I 4. Kua Tr Lonnu n1329-MA 4. Alor Setor 5 Labuon 5. Kota Bhau I This Ptoi Woad Br*n-26821 - 30 - Appendix 4 Table 1 MALAYSIA SECOND INDUSTRIAL TRAINING PROJECT Skilled Worker Trainint Capacity of Industrial Training Institutes by Skill Area and Estimated Training Staff Requirements /a Alor Setar Kota Bharu Total Staff Staff Staff Capa- require- Capa- require- Capa- require- city ments city ments city ments Workshops Mechanical department: General 60 6 30 3 90 9 Machines 30 5 30 5 60 10 Foundry - - 30 5 30 5 Motor vehicles 30 5 30 5 60 10 Earth-moving/construction 30 5 - - 30 5 machines Heavy commercial vehicles 30 5 - - 30 5 Welding 30 5 30 3 60 8 Engineering drafting 30 3 - - 30 3 Subtotal 240 34 150 21 390 55 Electrical engineering department: Electrical fitting (domestic and industrial) 60 6 30 3 90 9 Radio and TV servicing 30 5 30 5 60 10 Air-conditioning and refri- 30 3 30 3 60 6 geration Subtotal 120 14 90 11 210 25 Construction department: Woodworking machines - - 30 5 30 5 Carpentry and joinery - - 30 3 30 3 Cabinet making - - 30 3 30 3 Subtotal _ - 90 11 90 11 Classrooms and Drawing Office Classrooms (10) 150 -/b 150 -/b 300 -lb Drawing office (1) 15 - 15 - 30 - Subtotal 165 - 165 - 330 - Total 525 48 495 43 1,020 91 /a Excluding senior management and development staff. 7T; Teaching staff requirements included in specialist workshops. - 31 - Appendix 4 Table 2 MALAYSIA SECOND INDUSTRIAL TRAINING PROJECT Skilled Worker Training Technical Assistance and Staff Training Program Pro4ram Activity and purpose 85/86 86/87 87/88 88/89 89/90 Total Fellowships (man-years) Local: Skills training (preservice) for 100 instructors in programs of general and specialist skills 25 50 50 50 25 2no Overseas: Skills upgrading and attachments for new skills (see below) upgrading in other selected skills and management aspects - 34 34 34.75 102.75 Consultants (man-months) Foreign: Planning, development,and staff training for new skills training programs including: Glass and .cramics, plastics and rubber technology, die-casting, instrument mechanics and tool and die-making 24 55 51 48 38 216 Coordination (including team leader) and management aspects including: Development of a pilot demonstration ITI, industrial liaison systems and support to the MOL Development lunit for implementation of the poject 12 12 12 12 12 60 Note: Schedules and terms of reference are described in working papers. - 32 - Appendix 5 Page 1 MALAYSIA SECOND INDUSTRIAL TRAINING PROJECT Manpower Planning and Planning of Education and Training Introduction 1. Mhe proposed project would improve the capacity of relevant agencies responsible for manpower planning in the private and public sectors and for the planning of education. The assistance would be narrowly-based and would focus on the improvement of systems and operations, mainly through the provision of consultant services and staff training, the latter by fellowships for training overseas, and by in-service on-the-job training. Three key agencies would be assisted: (a) the Education Planning and Research Division (EPRD) of MOE; (b) the Research and Planning Division (RPD) of MOL, and (c) the Manpower Planning Section (MPS) of the Public Service Department (PsD). Education Planning and Research Division (EPRD) 2. The EPRD serves as the technical support and secretariat of the Education Planning Committee of MOE and provides the data .7nd analysis for the formulation of policy and implementation strategy. The Division-comprises five units - Planning, Research and Coordination, Evaluation, Data, and Policy. There is a total staff establishment of 119 of which 90 posts are currently filled (Table 1). 3. The Education Data Unit is responsible for the management infor- mation system for MOE. It is already provided with microc«oIputers and, following a recent Ministry-financed study, expects to install a main-frame computer system for general MOE service by January 1986. The proposed project would provide consultant services to establish the operating systems and to supervise the initial development of software - including the in-service training of staff. 4. The project would also finance 56 man-years of fellowships for overseas training to improve the qualifications and experience of EPRD staff. The library/documentations center would also be strengthened by the supply of books, periodicals and reproduction equipment. The technical assistance program is shown in Table 2. Research and Planning Division (RPD) of the MOL 5. The RPD of the MOL is responsible for manpower development planning for the private sector. Major activities include an Annual Survey of Employ- ment and Earnings in selected industries, a triennial Occupational Wage Survey - 33 - Appendix 5 Page 2 in select industries in the manufacturing sector and surveys of labor market mechanisms - the first pilot being undertaken in 1982. The RPD is organized in two sections: one for research and planning and the other for statistical anaLysis. The technical staff of eight is not expected to be increased significantly during the next few years due to the restriction on new appointments for the public service. 6. The project would improve the capacity of the RPD to undertake research and planning and to supervise and commission studies, by providing specialist consulting services, staff training and supporting microcomputer facilities and related software. The technical assistance program is shown in Table 3. Manpower Planning Section (MPS) of PSD 7. The PSD is the central personnel agency of Government, responsible for formulation and implementaticn of all personnel policies for public sector empLoyees. It has a key role in implementing the present policies for curtailing g-owth and increasing productivity in the public sector. 8. The proposed project wouLd focus in the strengthening of the MPS of the PSD's Establishment Division. The MPS has formulated guidelines for the organization of the manpower planning process for all public sector agen- cies. The process includes: analysis of functions and objectives, past and present stock, workload and establishment norms, supply and labor market information; forecasting of demand and supply; formulation of agency manpower plans; and implementation and evaluation. 9. The project would assist MPS by: (a) training key MPS and other public sector agency staff in courses (48 man-months) and internships (20 man-months) overseas; (b) providing consulting advisory services for: (i) in-country training of manpower planners, in association with the Institut Tadbican Awam Negara, Malaysia (12 man-months), and (ii) specialist short advisory assignments by key staff from associated overseas institutions (6 man-months); and (c) supply of microcomputer equipment and related software. The technical assistance program is shown in Table 4. 10. The Head of the MPS would be responsible for implementing this sub- component including the procurement of the technical assistance. The Adminis- trative Division wouLd be responsible for procurement of the hardware and of maintenance of project accounts. - 34 - Appendix 5 Page 3 Table 1: EDUCATION PLANNING AND RESEARCH DIVISION (HOE) STAFF ESTABLISHMENT AND STAFFING (OCTOBER 1984) Estab- Staffing in post Unit lishment Total PHID Master BA Subdegree Director/Deputy 2 2 - - 2 - Planning 27 16 - 3 9 4 Research and Coordination 18 16 1 3 7 5 Evaluation 32 22 - 3 16 3 Data 26 22 - 6 10 6 Policy 14 12 1 1 7 3 Total 119 90 2 16 51 21 Appendix 5 35 Page 4 Table 2: EDUCATION PLANNING AND RESEARCH DIVISION (MOE): TECHNICAL ASSISTANCE PROGRAM Program Type 85/86 86/87 87/88 88/89 Total Consultants (man-months foreign) Computer operation 6 - - - 6 (hardware) Computer appLica- 6 6 - - 12 tions (software) Fellowships (man-years foreign) 4 PHD: education, 2 4 4 2 12 economics, sociology, measurements 17 MA/MS: computer 6 13 11 4 34 mnnagement, information science and education research 6 Dip'oma and Certificate: - 3 2 - 5 education planning and public administration 15 Certificate: program- 1.5 2 1.5 - 5 ming - 36 - Appendix 5 Page 5 Table 3: RESEARCH AND PLANNING DIVISION (MOL): TECHNICAL ASSISTANCE PROGRAM Pro am Type 85/86 86787 87/88 Total Consultants (man-months foreign) Labor market survey, 9 9 - 18 design and implementation Statistical procedures 6 - - 6 Fellowships (man-months overseas) Short courses in 18 18 15 51 labor market survey and data processing Table 4: MANPOWER PLANNING SECTION (PSD): TECHNICAL ASSISTANCE PROGRAM Program Type 85/86 86/87 87/88 88/89 Total Consultants (man-months foreign) Manpower planning training 3 9 - - 12 Short specialist assignment 2 2 2 - 6 Fellowships (man-months overseas) Short and long (Masters) 12 12 12 12 48 courses in public sector manpower planning Internships 5 5 5 5 20 - 37 - Appendix 6 MALAYA SECOND INDUSTRIAL TRAINING PROJECT Impemn n Schedule mUD FISCAL7YEAR l Fl 9 FM CMBtR WAR CUcY C C087 cma as8 CY KOTABHAfJ PO LY. MUCHPIr- P.UOiLh1 - T ALO SE'A I - - - -:~: : u1I TE*CHrALASSISTANa cO~~UA ~*s *I 1| E| *_ . **- 1_--*._ 1_1. . . . I~~~~~~~~~~~~~~ CONSULTAM5 l * 1- -; 1-'---'' s FELLOAISF-S BU * .-MW amu imu a * a *om EFAD I1 I LTIAIERASrAR I CONSJTMJTS - F-- _. _. _ _ I09| I. . a . .uiJ.mmi m m - . . . a1 . ..... .. I Fe M 3 I ~~~I I TECUNC ME6TK EI& "I% MlL= lol CONRtTANIC - -- ._..- TECONCAL ASSTANaE CIO8SI&JANIs I mmaa am *m * e I | MI.* . . a-, . a ._ u-- - a_ _.m _._ _.m1 EOJPPE'J I ~ *~ha q~ _Mdclng Carion IEUUE1 Eq 0s m__ Ec ev & Instc llatin x Motenas* _ *- T n Erd Ikm-N -38- A£mAlx7 Table 1 NAZASTTA - DWL ThAhRnMO PRWfCT Dotalld o a tc Costs Technical, Equip- assitnCee No. of Student Civil Furni- sent end Special- Fellow- Total cost units places works teure materials lets- sbips PS'000 USS 'C00 ¶ecbnicia Tailning Physlcal development Xota Share Polytechnic Academic and coinnal 1 1,500 18,390 2.740 19,450 - - 40,580 16,230 hoarding 1 900 7,740 1,150 - - - 8,890 3,560 Staff housing 26 - 2,290 340 - - - 2,630 1.050 Subtotal 28,420 4,230 19,450 - - 52,110 A0. Kuchlb Polytech.oc Academic and comtunal 1 1,500 21,490 3,980 20,580 - - u.nso 18,420 aBording 1 900 9,040 1,670 - - - 10,710 4,280 Staff housing 26 - 2.640 490 - - - 3.130 1,250 Subtotal 33,170 6,140 20,580 - - 59,90n 23,960 Port Dickson Polytechaic Academic and comunal 1 1,500 18,390 2,740 17.970 - - 39,100 15,640 Boarding 1 900 7.740 1.150 - - - 8,890 3,560 Staff housiAg 26 - 2,290 340 - - - 2,630 1,050 Subtotal 28.420 4,230 17,970 50,630 20 250 Polytechnlc course, staff and usangement development - - - - - 2,200 20,550 22,750 9,100 Tbtal Technician Training 90,020 14.600 5& .10 2.200 20-550 185,380 74,150 Skilled worker Training Physical development Alor Setar m Academic and comunal 1 525 5,510 820 9,830 - - 16,160 6460 boarding 1 240 2,590 390 - - - 2,930 1190 Staff housing 15 - 580 90 - _ - 670 270 Subtotal 8,680 1 3no 9.830 - - 19.10 7,920 Kota Uharu m Academic and communal. 1 495 5,300 790 7.670 - - 13,760 5,500 Boarding 1 240 1,500 220 - - - 1,720 690 Staff housing 15 - 750 110 - - - 860 340 Subtotal 7.550 1,120 7,670 - 16.340 6.540 m course, staff and management development - - - - - 6,42n 6,410 12,820 5,130 Total Skilled Worker Training 16.230 2.420 17,510 6.420 6.410 48.970 19.S90 Plannlng Educational Planning and Research Divsalon (MOE) - - 270 450 2,780 3,500 1,400 Research and Planning Dlvislon (MDL) - - 280 710 520 1,510 600 Manpower Planning Section CPSD) - - 190 570 640 1,400 560 Total Planning - - 740 1.730 3.940 6,410 2.560 B aeliae Cost 106.250 17,020 76.250 10,340 30,90 240,760 96.30D Contingenles Physical 10,630 1,700 7.630 520 1.540 22,010 8,810 Price Increase 12.490 3,450 14,960 2.160 6,730 39.780 15,910 Subtotal 23,120 5.150 2,590 26 8270 61,790 24,720 Total Project Cost (M$'000) 129.370 22.170 98,U40 13.020 39,160 302,560 (US$oCo) 51,750 8.870 39,540 5,210 15.6 0 121,020 -39 - Appendix 7 Table 2 MALAYSIA SECOND INDUSTRIAL TRAINING PROJECT Project Expenditure by Year and Purpose Total Cost Base Costs (RLnggit million) Ringgit US$ 85/86 86/87 87/88 88/89 89/90 million million Technician training Physical development: Kota Bharu Polytechnic 14.2 26.1 11.9 - - 52.1 20.8 Kuching Polytechnic 13.3 23.3 23.4 - - 59.9 24.0 Port Dickson Polytechnic - 11.4 25.3 13.9 - 50.6 20.3 Course, Staff and Management Development 1.3 5.6 6.5 6.2 3.2 22.8 9.1 Subtotal 28.8 66.3 67.0 20.2 3.2 185.4 74.2 Skilled worker training Physical development: Alor Setar ITI 4.3 12.1 3.3 - - 19.8 7.9 Kota Bharu ITI 3.8 9.9 2.6 - - 16.3 6.5 Course, Staff and Management Development 1.0 3.6 3.5 3.4 1.3 12.8 5.1 Subtotal 9.1 25.6 9.5 3.4 1.3 49.0 19.6 Manpower Development Planning: EPRD (MOE) 1.1 1.2 0.9 0.4 - 3.5 1.4 RPD (MOL) 0.9 0.5 0.2 - - 1.5 0.6 MPS (PSD) 0.4 0.6 0.3 0.2 - 1.4 0.6 Subtotal 2.3 2.2 1.3 0.5 - 6.4 2.6 Baseline cost 40.2 94.2 77.8 24.1 4.5 240.8 96.3 Contingencies: Physical 3.8 8.8 7.2 1.9 0.2 22.0 8.8 Price increase 1.7 11.5 17.0 7.7 1.9 39.8 15.9 Subtotal 5.5 20.4 24.2 9.6 2.1 61.9 24.7 Total Project Cost 45.7 114.6 101.9 33.7 6.6 302.6 121.0 Foreign exchange 19.6 66.8 72.0 26.6 6.0 191.0 76.4 MALAYSIA SECOND INDUSTRIAL TRAINING PROJECT Unit Capital Costs and Areas for Project Institutions Gross area per student place or housing unit Estimated cost per student place or housing unit /a Median FY81-83 This project Medlan total cost projects FY81-83 projects This East Bank- Furni- Equip- East Bank- Project item project Asia wide Buildings /b ture ment Total Asia wide (sq m) ---- (US$) ----------------------… Polytechnics Academic and communal 15.4 14.7 13.5 5,180 840 5,160 11,180 11,335 7,860 Boarding 16.0 16.0 9.6 3,630 590 - 4,220 4,279/c 3,919 Staff housing 128.4 128.0 86.0 34,380 5,570 - 39,950 26,570/c 31,224/c Industrial Training Institutes Academic and communal 16.1 14.7 13.5 4,240 630 6,870 11,740 11,335 7,860 Boarding 13,9 16.0 9.6 3,410 510 - 3,920 4,279/c 3,919 Staff housing 87.3 128.0 86.0 17,730 2,670 - 20,400 26,570/c 31,244/c /a Unit costs exclude contingency allowances and professional fees. /b Site works costs being funded under the First Industrial Training Project. H U /c Excluding furniture costs. - 41 - Appendix 7 Table 4 MALAYSIA SECOND INDUSTRIAL TRAINING PROJECT Estimated Schedule of Disbursements Disbursements Regional education Amount per Cumulative projects disbursement IBRD fiscal year semester Amount % profile /a and semester US$ million (%) 1986 1 0.5 0.5 1 0 2 1.0 1.5 2 1 1987 1 2.5 4.0 5 3 2 7.0 11.0 15 7 1988 1 8.0 19.0 26 11 2 12.0 31.0 42 17 1989 1 12.0 43.0 59 24 2 12.0 55.0 75 33 1990 1 8.0 63.0 86 42 2 5.0 68.0 93 51 1991 1 4.0 72.0 98 60 2 1.3 73.3 100 69 /a The regional education disbursement profile is based on historical data for 29 projects and represents the initial 6 years of an average disbursement period of 9 years. - 42 - APPENDIX 8 MALAYSIA SECOND INDUSTRIAL TRAINING PROJECT Selected Documents and Data Available in the Project File A. Reports and Studies Related to the Subject A.1 MDC Sdn. Bhd., Malaysian Practical Guide to Customs Duties Order - Import, Export, Sales Tax and Surtax. All amendments up to 19 October 1984. A.2 Malaysia, Mid-Term Review of the Fourth Malaysia Plan 1981-1985. A.3 Ministry of Education, Technical Assistance for Polytechnic Development, First Consultancy Report, October 1984 by Techint International Technical Company Ltd. A.4 Study on Industrial Training Scheme(s) in Manufacturing Sector by W.D. Scott (Final report not yet received). B. Reports and Studies Related to the Project B.1 Government of Malaysia, Project Proposal for Second Industrial Training (Education VII), Volumes 1 and 2 (March 1983) and Supplementary Report, Part II (April 1983). C. Working Papers C.1 Polytechnics C.2 Industrial Training Institutes C.3 Planning and Management IBRO 1871 wr wr lor w~~~~~~~~~~lr i lbs O' MALAYSIA SECOND INDUSTRIAL TRAINING PROJECT A .SOE L%mcHFmU=,TA IA TR PLOECT A, _ PCX TECIS - EX*o AM FST \K F /A H RAILWAYS … - - - - -STATE RUDARIES B~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~~~--- L ) /N)TIOIAtKTO\ 4 oRIES - .l f, J - r t t * Su o \- a SEZA ) r ~ ~ ~ ~~ ,.- _________________NU_ muu,r : Limo K -LES r P t -- A . N Hiltr~~~~~~~~~~~~~~~~~~~~ Silgul BmgI) .qJ 1- - ~~ Kid.AFEdr . ~ ~~~~~ ~ ~~~~ r,?,1 /V N + CA NU en KdO50rw~ ~ ~ ~ ~ ~~~~~~~~~~~ow -k Go k ' '.THAILtANOAU'__ 1 - H lr PIiro -: t __ '. -, S} ~S r O ' K / R SNATA NE~SI ;A umatra - L _-__ I A N donioF 1985 . s THILANO r- b-\ w a || . tbitr ) , I --- (oEbocUi-^nci | _ t 1 [i \ /~~~N vts -- sK^UCHA ) | >>_ J O ' )0 E t ---N^ - FHIUM S| . D--E .,C |IIATICI JF-- _ A~~~~~~~~~~~~~~~~~~~~~FBUR 1985