RM1.3 Billion Election Cost Could Be Better Spent on Schools and High-Skilled Workforce, Says Economist
PETALING JAYA: The estimated RM1.3 billion required to conduct Malaysia’s 16th General Election (GE16) could deliver far greater long-term economic benefits if channelled into education, skills development and workforce transformation initiatives, according to an economist.
Aimi Zulhazmi Abdul Rashid said the projected expenditure, which represents approximately 0.35 per cent of the country’s gross domestic product (GDP), could be redirected towards strategic investments capable of generating sustainable economic returns over the next decade.
He noted that the amount would be sufficient to build as many as 200 new schools nationwide or provide technology and digital-skills training to more than 500,000 workers, helping Malaysia prepare for the demands of a rapidly evolving global economy.
According to Aimi, countries that invest aggressively in human capital are generally better positioned to attract high-value investments and strengthen their competitiveness in emerging industries.
“Economic growth today is increasingly driven by talent, innovation and technological capability.
“If resources of this scale are invested in workforce development, Malaysia can significantly improve its attractiveness as a destination for advanced manufacturing and technology investments,” he said.
Aimi explained that part of the allocation could support talent-development initiatives such as the Malaysia AP Talent Fund, particularly for industries linked to semiconductors and advanced electronics manufacturing.
He estimated that approximately 5,000 highly skilled workers could be trained to meet growing industry demand for semiconductor packaging and advanced chip-production activities.
Such an initiative, he said, could help attract up to RM30 billion in foreign direct investment through the establishment of multiple advanced semiconductor facilities in Malaysia.
“Global investors are increasingly looking for locations with strong talent pipelines rather than relying solely on tax incentives.
“Countries capable of producing skilled workers will enjoy a stronger competitive advantage in attracting strategic investments,” he said.
However, he warned that Malaysia faces intense competition from regional economies such as Vietnam, which continue to strengthen their own technology and manufacturing ecosystems.
Beyond workforce development, Aimi said the RM1.3 billion could also be used to modernise the country’s Technical and Vocational Education and Training (TVET) ecosystem.
Under such an approach, approximately 100 vocational colleges and 50 community colleges could be upgraded into Industry 4.0 training centres equipped with advanced technologies.
Facilities could include industrial robotics, computer numerical control (CNC) systems, semiconductor laboratories and renewable-energy technologies that better reflect real industry requirements.
He added that providing students with hands-on exposure to modern industrial technologies would improve employability and help bridge skills gaps in the labour market.
The economist also proposed offering full training subsidies to as many as 200,000 SPM graduates from lower-income families, enabling them to pursue high-demand technical qualifications.
According to him, graduates equipped with specialised skills could potentially earn salaries exceeding RM3,500 per month, well above the national minimum wage level.
The debate over GE16 costs resurfaced after former Election Commission deputy chairman Wan Ahmad Wan Omar suggested that the next general election could cost more than RM1.3 billion.
Earlier, Prime Minister Anwar Ibrahim stressed that the government’s current focus remains on economic recovery, investment attraction and addressing public concerns.
Meanwhile, Universiti Malaya sociopolitical analyst Awang Azman Awang Pawi argued that election spending should not be viewed purely as a cost because it represents an essential component of democratic governance.
He said that if GE16 produces a stable government with a strong mandate to govern for a full term, the expenditure could also be seen as an investment in political stability and democratic institutions.
