The Malaysia polytechnics is expected to lead the field of thrust programs (niche area) and specific technology that can produce quality graduates with entrepreneurship abilities. The paper seeks answers how current entrepreneurship education in Malaysia polytechnics encourages the development of entrepreneurship education in the institutions. In this study, data were collected from Higher Learning Institutions Tracer Study Report from 2012 until 2015 and Key Performance Index (KPI) 2016 and 2017 for Entrepreneurship in Malaysian Polytechnic. A finding shows that entrepreneurship has inclined in Malaysia Polytechnics according to industrial needs and based-on the development of the country. The establishments of Malaysian Polytechnic Entrepreneurship Centre (MPEC) become a great achievement for polytechnic education system in Malaysia. The findings will draw a clearer understanding and better picture of the common features exist in what seems to be a fragmented field of study.

1. 1
Redesigning Entrepreneurship Development in Malaysia
Polytechnics, Ministry of Higher Education, Malaysia
Mohamad Ali Bin Hamzah
Department of Polytechnic Education
Abstract
The Malaysia polytechnics is expected to lead the field of thrust programs (niche area) and
specific technology that can produce quality graduates with entrepreneurship abilities. The
paper seeks answers how current entrepreneurship education in Malaysia polytechnics
encourages the development of entrepreneurship education in the institutions. In this study,
data were collected from Higher Learning Institutions Tracer Study Report from 2012 until 2015
and Key Performance Index (KPI) 2016 and 2017 for Entrepreneurship in Malaysian
Polytechnic. A finding shows that entrepreneurship has inclined in Malaysia Polytechnics
according to industrial needs and based-on the development of the country. The
establishments of Malaysian Polytechnic Entrepreneurship Centre (MPEC) become a great
achievement for polytechnic education system in Malaysia. The findings will draw a clearer
understanding and better picture of the common features exist in what seems to be a
fragmented field of study.
Keywords: polytechnic-entrepreneurship education-MPEC
1. Introduction
Youth is a valuable asset that can contribute to the economic development of
Malaysia. At this period of time, most of the youth are currently in the process of
completing their studies and preparing themselves for the job sector. As we
understand, most of the vacancies in the public and private sectors require the
candidates to have an appropriate level of education as one of the criteria to be
fulfilled. Indeed, the level of education of this generation will determine the type
of job that they are qualified to apply.
Entrepreneurship has become a focus in many countries around the
globe as a catalyst for sustainable economic growth and as a saviour from
economic difficulties. The crucial role of entrepreneurs in the economy is widely
recognised as they create new enterprise, introduce new products and services,

2. 2
speed-up disruptive innovation in the economy, thereby contributing to the
creation of new jobs and productivity growth.
Many Malaysian universities and higher learning institutions started to
introduce subjects and courses related to entrepreneurship or entrepreneurship
programme since the mid-1990 in addition to traditional business courses such
as finance, economic, management, accounting and marketing at both
undergraduate and postgraduate levels (see Cheng et al., 2009). The
expectation is that more and better entrepreneurship education and training
would result in more and better entrepreneurs with the adequate business
knowledge, skills and competencies to engage in a more enterprising,
innovative and flexible manner in a fast changing and dynamic global business
environments (Matlay, 2008; Falkang and Alberti, 2000).
In Malaysia, the government is very supportive of entrepreneurship
development, graduates of polytechnics included. In addition, the Malaysian
Higher Education system is undergoing significant transformation to remain
competitive and relevant in a rapidly-changing global economy. The Ministry of
Higher Education (MOHE) is continuously enhancing the higher education
system to be more inclusive, innovative and entrepreneurial to ensure that our
graduates are not only equipped with the skills required to thrive at future
workforce, but also become job-creators rather than job-seekers.
Among the initiatives undertaken by the MOHE to promote ‘Education for
Self-Employment’ are the introduction of both the policy and the action plan on
entrepreneurship education through Malaysian Education Blueprint 2015 –
2025 (Higher Education), particularly Shift 1, which aim to produce ‘Holistic,
Balanced, and Entrepreneurial Graduates’, and Entrepreneurship Action Plan
of Higher Education Institutions 2016 – 2020. These initiatives aim at
creating a conducive ecosystem for the development of quality and
entrepreneurial graduates, essential to drive the nation’s economic growth.
2. Development of entrepreneurship education in Malaysian
Polytechnics
In Malaysia context, one of the main social development difficulties
facing the government is graduate unemployment. Generally, there are four

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primary issues concerning the employment of graduates in Malaysia. Firstly,
rising unemployment among graduates; secondly, a mismatch between the
skills of graduates and the requirements of employers in the organisation;
thirdly, the appropriateness of graduate employment; finally, the shrinkage of
employment in the public sector and growth in the private sector (Annie-Wong
and Jamil-Hamali, 2006). According to the Central Bank of Malaysia Report, the
total number of unemployed graduates stood at 38,800 in 2001. By 2002, the
number had risen to 45,400 (Annie-Wong and Jamil-Hamali, 2006). A recent
survey conducted by the Economic Planning Agency found that almost 60,000
graduates are unemployed (The Economist, 2005; Mohar et al., 2008). One
solution to this problem is through entrepreneurship (Bogenhold, 2004). He
writes, it is being lauded in propaganda terms as the ‘medicine’ to cure
stubbornly high unemployment is sometimes much more appropriately seen as
the thermometer indicating how acute the sickness of unemployment really is.
This is in line with the findings of previous studies in which entrepreneurship
has been seen as a major source of job creation (Birch, 1979; McMullan and
Long, 1987; Gibb, 1996) and economic development (Gibb, 1996).
The Malaysian government considers involvement in entrepreneurship
as a possible solution to the problem of graduate unemployment. This is
because many economists and politicians agreed that entrepreneurship
stimulates the generation of employment opportunities and wealth creation
(Dana, 2001; Garavan and O'Cinneide, 1994; Kong, 1996). In addition, formal
EE has been found to affect attitudes amongst university students in such a way
that entrepreneurship is seen as a career option (Hansemark, 1998). In this
context, Entrepreneurship Education may promote an awareness of self-
employment as a career option; it is suggested that this awareness motivates
young people to equip themselves with the skills, knowledge and experience
required for effective business ownership (Flemming, 1996). In Malaysia, the
field of entrepreneurial studies is still new and is currently undergoing great
changes (Othman et al., 2008; Mohar, et al., 2008). To resolve these issues, a
re-evaluation of Malaysia higher education system is needed to find out the
stumbling blocks that hinder the growth of entrepreneurship development.

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3. Malaysian Polytechnic Entrepreneurship Centre (MPEC)
The establishment of Malaysian Polytechnic Entrepreneurship Centre (MPEC)
on October 30, 2011 is the starting point of the entrepreneurship development
centre in Malaysian Polytechnic. MPEC determines the policy and direction of
entrepreneurship education development at polytechnics through transformation
initiatives to enhance student marketability and entrepreneurship. The
compilation of entrepreneurial development programs that are organized and
relevant are embedded across the curriculum and co-curriculum in order to
facilitate the achievement of MPEC’s objectives. It’s aim to;
1. To develop human capital with attribute of thinking and entrepreneurs
values.
2. To develop entrepreneurs skill and knowledge among students in era of
world economic globalization as well as environmental issues.
3. To increase number of entrepreneurs among polytechnic graduates
4. Study Methodology
The paper reflects on the experiences of practitioners, including the author, in
embedding entrepreneurship education in Malaysian Polytechnic. Hence, in
seeking to develop a holistic approach which connects enterprise and
employability through personal and career development of the students.
5. Data Collection and Analysis
In order to do this, students in Malaysian polytechnics, a higher vocational
institutions is chosen for the study. The data gathered from Higher Learning
Institutions Tracer Study Report from year 2012 until 2015. The data were
analysed manually. The data also gathered from Key Performance Index (KPI)
which setting by Ministry of Higher Education (MOHE) for years 2016 and 2017.

5. 5
5.1 Findings:
Table 1 shown the number of graduate from all polytechnics in Malaysia and the
field of study. The highest number of students in Malaysian polytechnics are
studying in technical compared the social science.
Year
Number
of
Graduate
Studying
Total
Technical
Information
Technology
Social
Science
2012 33,839 68.7% 5.7% 25.6% 100%
2013 31,514 64.8% 9.6% 25.6% 100%
2014 26,460 56.3% 9.3% 34.4% 100%
2015 25,492 58.8% 11.0% 30.1% 100%
Table 1: The Respondents
Table 2 show the increasing number of polytechnics graduates’ involved in
entrepreneurship within six (6) months after finish their study. In 2015, 2.03% of
graduates are choose to be entrepreneurs compared 1.24% in 2014, 0.796% in
2013 and 0.895% in 2012.
Year Number of Graduate
Number of
Entrepreneurs
Percentage
2012 33,839 303 0.895%
2013 31,514 251 0.796%
2014 26,460 329 1.24%
2015 25,492 517 2.03%
Table 2: Number of graduates become as an entrepreneurs within six (6)
months after graduated.

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Table 3 shows the percentage of graduates in ten (10) entrepreneurship areas
that are the main choice of graduates after graduation. Year 2012, 13.2% of
graduates chose engineering as the main choice of entrepreneurship. In 2013,
13.9% of graduates chose the restaurant as a preferred entrepreneurial option.
Starting in 2014, most graduates are beginning to shift by making online
business an option by 12.2% and 15.1% on 2015.
No Business Area
2012
N = 303
2013
N = 251
2014
N = 329
2015
N = 517
1. Direct Selling 7.3% 8.4% 9.1% 5.0%
2. Contractor / Engineering 13.2% 12.7% 8.5% 9.5%
3. Online Business - 7.6% 12.2% 15.1%
4.
Graphic / Printing/
Advertisement
6.6% 6.8% 3.3% 5.6%
5. Restaurant 9.6% 13.9% 10.6% 10.4%
6. Food Processing 4.6% 2.8% 7.6% 5.2%
7. Consultant 2.3% 0.8% 1.2% 0.8%
8. Farming and Agro 6.3% 2.4% 3% 3.3%
9. Boutique 3.0% 4.4% 2.7% 5.2%
10 Insurance 2.0% 2.0% 2.1% 2.5%
11. Others 45.1% 38.2% 39.7% 37.4%
Total 100% 100% 100% 100%
Table 3: The percentage of polytechnics entrepreneurs in top 10 business area

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5.2 Key Performance Index
MOHE also put a few key performance indicators (KPI) and one of them
is accelerating entrepreneurship education programs in universities,
polytechnics and community colleges. Despite the expansion of
Entrepreneurship Education (EE) in the educational system especially in higher
learning institutions, the development of entrepreneurial mind and spirit are still
weak among students. The academic programmes of most universities tend to
teach students to become ‘employees’ or ‘paid-oriented graduates’ and rarely
focuses in developing creative skills, innovative capabilities and competencies
that enable them to pursue a career in self/small business employment or to
become entrepreneurs as an alternative graduate career path (Matlay, 2005).
Table 4 shown the achievement of Key Performance Index (KPI) for Malaysian
Polytechnics. In 2016, Malaysian Polytechnics have 33 campus with the
capacity of 99,551 students in campus and 24,522 graduates. Malaysian
Polytechnic has achieved the KPI set by the Ministry of Higher Education during
the year.
Key Performance Index
No of
Student
Target Achievement
% of
Achievement
1.
Students actively
involved in
entrepreneurship
activities and
programmed
99,551
60%
N = 59,731
81,623 82%
2.
Become entrepreneurs
after pursuing their
tertiary education within
6 – 12 months
24,522
2.5%
N = 613
715 2.92%
3.
Students venture into
entrepreneurship while
they are pursuing
studies
99,551
3%
N = 2,987
4292 4.31%
Table 4: Key performance index (KPI) 2016 for Malaysian Polytechnics

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Table 5 shown the achievement of Key Performance Index for Malaysian
Polytechnics. In 2017, Malaysian Polytechnics have 34 campus with the
capacity of 102,321 students in campus and 25,323 graduates.
Key Performance Index
No of
Student
Target Achievement
% of
Achievement
1.
Students actively
involved in
entrepreneurship
activities and
programmed
102,321
80%
N = 82,000
82,323 80.4%
2.
Become entrepreneurs
after pursuing their
tertiary education within
6 – 12 months
25,323
3.95%
N = 1,000
611 2.41%
3.
Students venture into
entrepreneurship while
they are pursuing
studies
102,321
5.28%
N = 5,400
4971 4.86%
Table 5: Key performance index (KPI) 2017 for Malaysian Polytechnics until July
2017
5.3 Malaysian polytechnic entrepreneurship best practice
5.3.1 Kiosk and Incubator
MPEC in collaboration with Malaysian polytechnics has built
entrepreneurship kiosks in the campus to enable students to do business
in the campus. This entrepreneurial kiosk does not charge expensive
rental. Where students are able to do business without any loss.
Students are encouraged to run a business that they are interested in the
kiosks provided by the polytechnics.
Entrepreneurial incubators – to help entrepreneurs get off the
ground through mentoring, funding and facilities. Entrepreneurship
incubators have also been built in selected polytechnics according to the
courses offered at the polytechnics. For the year 2017, a total of seven
incubators were built in six selected polytechnics. They are air
conditioning incubators at Ungku Omar Polytechnic, interior design
(wallpaper, blind curtain and tiles) incubator at Port Dickson Polytechnic
and Ibrahim Sultan Polytechnic, organic fertilizer incubator at Kota Bharu

9. 9
Polytechnic, wood pallet and Arduino incubator at Sultanah Bahiyah
Polytechnic and meatball incubator at Sandakan Polytechnic.
Each incubator established, they must appoint mentors, conduct
courses with the industry for selected students, collaborate with the
industry and the incubator must get projects to generate income. Among
the successful incubators were Arduino incubators at Sultanah Bahiyah
Polytechnic, Kedah. This incubator has produced "Sumo Robot" and
several other robots for training and sale purposes. They have also been
collaborating with the Kedah State Education Department to organize
Arduino-related courses in schools throughout the State of Kedah.
5.3.2 National Blue Ocean Strategy (NBOS)
As Malaysia continues its ambitious journey towards becoming an
advanced nation by 2020, the government has adopted Blue Ocean
Strategy in its strategic planning and operations to deliver programs and
services to the public that are high impact, low cost, and rapidly
executed.
In addition, through National Blue Ocean Strategy, over 80
ministries and agencies – from the police and military, to women, youth,
and higher education organizations – are collaborating to formulate and
execute creative blue ocean strategy initiatives that are transforming the
country.
The Polytechnic Education Department (DPE) is also not
independent to implement this NBOS with other government agencies.
Among the agencies that work closely with the DPE are Federal
Agricultural Marketing Authorities (FAMA) and The Domestic Trade,
Cooperatives and Consumerism Ministry (KPDNKK). Both of these
agencies work closely with DPE to produce entrepreneurs in certain
fields. They also provide funds for potential students to become
entrepreneurs.
Together with KPDNKK, DPE has sent students to undergo
industrial training with successful entrepreneurs. They will be given
exposure on entrepreneurship according to the syllabus that has been
established and monitored by the KPDNKK and DPE.

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5.3.3 Disclosure to the real market
Students involved in entrepreneurship are also exposed to real
markets. Where they are encouraged to participate in entrepreneurial
activities conducted outside the campus whether organized by
polytechnics, ministries or other agencies.
The programs are included participating in the FAMA organized
programmed “MyBest Buy Carnival” held in polytechnic campus or
outside campus. The Siswapreneur Showcase (Student Entrepreneur
Showcase) organized by the MOHE held at selected shopping malls.
Online Business Mega Expo (OBME17) at Malacca International Trade
Center (MITC) and various other carnivals held throughout the year. The
purpose of this disclosure is to enable these entrepreneurs to build
collaborative networks with various parties, build the confidence of
entrepreneurs in the face of real market and self-confidence to market
their sales products.
DPE and Malaysian polytechnics strongly encourage students
with entrepreneurial interest to participate in these programs with the aim
of encouraging students to continue their interest in entrepreneurship.
The DPE also provides funds to all polytechnics for the purpose of
empowering this entrepreneur.
6. Conclusion
The culture of teaching and learning in Malaysia Polytechnics need to be
changed and transformed in order to produce the quality of human capital,
excellent knowledge and skills that can generate socio-economic improvement
and community with a high income. The students of polytechnics have to
increase their confident so that they can build up their enterprising skills in
which is the most important parts of an entrepreneurship and become
successful entrepreneurs.
Entrepreneurship education is particularly effective in TVET, because, as
students prepare to enter the world of work self-employment can be a valuable

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option for them. Considering the potential significant effect of entrepreneurship
education, it is included in the TVET curricula in many countries in the world.
As a conclusion, developing entrepreneurial graduates is therefore
essential for our future success. Polytechnics and other higher education
institutions should be ideally placed to expose students to environments which
foster entrepreneurial mindsets and the effectiveness of the entrepreneurship
programs are important keys to produce more young entrepreneurs in future.
The program itself can educate our young generation to be more productive
after graduating from their studies. Rather than becoming unemployed, it is
good to channel their creativity and energy towards entrepreneurship which is
now becoming a valuable field in this world. As mentioned earlier, other
countries are now doing a lot of work to develop their youth in entrepreneurship.
As a developing country, Malaysia should do the same to improve and develop
in the country’s economy. If this asset is being used in a proper way, they not
only can generate their own income but also can help our country to boost up its
economic development. All of this starts from education.
7. Recommendations
On the basis of the results of the study and the conclusion reached, it is
recommended that:
1. Although the goals of TVET as contained in the Entrepreneurship
Action Plan of Higher Education Institutions 2016 – 2020 on
education are well stated, there is the need to improve on them since we
are dynamic society.
2. Although there is ample evidence that entrepreneurship courses are
taught in the polytechnics, it is suggested that more entrepreneurship
courses should be added in order to beef up the curriculum and
strengthen polytechnics graduates.
3. The identified basic entrepreneurial skills should be introduced into the
entrepreneurship education curriculum to prepare students for self-
employment.

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4. Technical, Vocational Education and Training (TVET) lecturers and
instructors should adapt to changes by making themselves available for
training and re- training on the entrepreneurship education.
5. Entrepreneurship training should be encouraged for individual
empowerment and self-employment.
6. Adequate infrastructural facilities, enabling enrolment that support and
encourage entrepreneurship development should be provided by the
government to encourage people to go into self-employment.

13. 13
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