The words you are searching are inside this book. To get more targeted content, please make full-text search by clicking here.
Discover the best professional documents and content resources in AnyFlip Document Base.
Search
Published by amanhorey, 2022-12-13 22:06:23

ARTIKEL LUAR BANDAR SEJAHTERA 2021- new

ARTIKEL LUAR BANDAR SEJAHTERA 2021- new

NO. RESEARCH TITLE PAGES
1. STUDY OF THE IMPACT OF THE RURAL BUSINESS CHALLENGE (RBC) 99
PROGRAMME IN TERMS OF PROGRAMME IMPLEMENTATION, 125
OUTPUT AND OUTCOME 138

Dr Wardatul Aishah Binti Musa, En Mohd Nasrul Hakim, Puan Siti Shariyah Binti 153
Shaari, Prof Madya Dr Zalizah Binti Awang Long, Prof Madya Dr Marhanum Binti
Che Mohd Salleh, Prof Madya Datin Dr Nooraini Othman 169

Universiti Kuala Lumpur

2. PERDA-TECH AS A HIGH SKILLS INSTITUTE: ACTION PLAN,
STRENGTHS,OPPORTUNITIES, AND SUGGESTED IMPROVEMENT

Prof Dato Dr Muhamad Jantan, Prof Dato Sr Dr Omar Osman, Prof Dr Rosni
Abdullah, Prof Dr Ahmad Fauzi Mohd Noor, Prof Madya Dr Azeem Fazwan Ahmad
Farouk, Dr Musa Ali, Dr Dayang Haszelinna Abang Ali

Usains
Universiti Sains Malaysia (USM)

3. ASSESSMENT ON THE NECESSITY TO RE-ESTABLISH
DEVELOPMENT AUTHORITY OF PAHANG TENGGARA (DARA) AND
JENGKA REGIONALDEVELOPMENT AUTHORITY (LKWJ)

Prof. TPr. Dr. Mariana Bt. Mohamed Osman, Prof. Dato’ TPr. Mansor Bin Ibrahim,
Dato TPr. Dr. Mohd Zin Mohamed, Prof. Madya Dr. Sharifah Zubaidah Bt. Syed
Abdul Kader, TPr. Dr. Syafiee Bin Shuid, Dr Noor Suzilawati Binti Rabe, Dr Zati
Ilham Bt. Abdul Manaf

IIUM Entrepreneurship and Consultancies Sdn Bhd
4. INFRA TRAINING EMPOWERMENT AND STRATEGIC PLANNING 2021 –

2025

Dr.Sharifah Syahirah SS, Prof. Madya Dr Suhaily Mohd Ramly, Dr.Fadilah Puteh,
Dr Nurisyal Muhamad, DrNisrin Alyani Ishak dan Dr. Norhaninah A. Ghani, Dr.
Hajah Anitawati Mohd Lokman

Kolej Universiti Poly Tech Mara (KUTPM)
Universiti Teknologi Mara (UiTM)

5. IMPACT STUDY ON RURAL ECONOMIC FINANCING SCHEME: (SPED)

Ts Hj Yuriny Adnan Ts Intan Suraya Razak,Prof Madya Dr Ruslin Bin Amir, Tn Hj
Ishak Bin Hj Abd Rahman,Dr Azmi Bin Aziz, Dr Isa Bin Hamzah, Cik Nur Afifah
Binti Rozali En Mohamad Afiq Bin Anuar

UKM Pakarunding Sdn Bhd

97 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

RESEARCH TITLE:

STUDY OF THE IMPACT OF THE RURAL BUSINESS CHALLENGE (RBC)
PROGRAMME IN TERMS OF PROGRAMME IMPLEMENTATION, OUTPUT

AND OUTCOME
Dr Wardatul Aishah Binti Musa, En Mohd Nasrul Hakim, Puan Siti Shariyah Binti Shaari,
Prof Madya Dr Zalizah Binti Awang Long, Prof Madya Dr Marhanum Binti Che Mohd Salleh,

Prof Madya Datin Dr Nooraini Othman
Universiti Kuala Lumpur

98 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

STUDY OF THE IMPACT OF THE RURAL BUSINESS CHALLENGE (RBC)
PROGRAMME IN TERMS OF PROGRAMME IMPLEMENTATION, OUTPUT

AND OUTCOME

Dr Wardatul Aishah Binti Musa, En Mohd Nasrul Hakim, Puan Siti Shariyah Binti Shaari, Prof Madya Dr
Zalizah Binti Awang Long, Prof Madya Dr Marhanum Binti Che Mohd Salleh,
Prof Madya Datin Dr Nooraini Othman
Universiti Kuala Lumpur

ABSTRACT
The Rural Business Challenge (RBC) programme is one of the programmes under the Government
Transformation Plan managed by the Ministry of Rural Development (KPLB). The programme was
implemented as an effort by the government to encourage rural youths to choose entrepreneurship as their
career of choice or as their source of income. This study examined the effectiveness of the RBC programme
between 2012 to 2015 from the aspect of its implementation method for youth entrepreneurs based on the
competition category approach, competition evaluation method, project implementation period, grant value
offered and monitoring method by the ministry and the output and outcome evaluation of the RBC based on
business developments resulting from the implementation of the winning projects. The respondents involved
in this study were 72 entrepreneurs under the Business Development (PP) category, 17 officers in the RBC
programme and 30 villagers. This was a qualitative study. Data were analyzed using the Atlas.ti software. This
method used the thematic and verbatim modes of analysis. The findings showed that overall, the evaluation
and effectiveness of the RBC programme implementation method was sound and suggestions for improvements
in terms of monitoring and guidelines were also given. The RBC programme has helped rural entrepreneurs
as well as the local community in terms of increasing income, providing employment opportunities, creating
new entrepreneurs and indirectly sustaining youths to continue living in rural areas instead of migrating to
the cities. However, attention should be given to some areas in order to improve the quality of RBC
programmes in the future.

Keywords: Rural Business Challenge Programme (RBC), Ministry of Rural Development (KPLB),
entrepreneurship, qualitative

99 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

INTRODUCTION

Along with the government's efforts to improve the standard of the Malaysian economy, various short-term
and long-term policies and plans have been developed. Among them is the Rural Development Policy under
the Ministry of Rural Development which implemented various economic, social, community and other
development plans in rural areas with the aim of producing more successful entrepreneurs. Judging from the
significance of this entrepreneurial activity, the Rural Business Challenge (RBC) Programme was
implemented as a government effort to encourage youths, especially in rural areas, to choose entrepreneurship
as their preferred career or source of income. The Rural Business Challenge (RBC) programme is one of the
programmes under the Government Transformation Plan (GTAPI 2.0): Rural Development which was
announced by the former YAB Prime Minister of Malaysia in 2012. The Rural Business Challenge (RBC)
programme is a programme that provided opportunities to Malaysian youths who have the inclination, interest
and determination to take up entrepreneurship as their career of choice or source of income. The RBC isalso
aimed at creating more employment opportunities and increase the income of the rural population, thereby
making the rural areas more attractive and on par with the cities to be inhabited especially by the youths.

The RBC is an entrepreneurship-oriented programme specifically for youths that employs a business plan
competition approach. The programme is able to uncover the talents of real entrepreneurs to actualise business
planning into business projects in rural areas. In this programme, an RBC competition is created toselect
youth entrepreneurs to jointly develop the rural economy. The RBC competition is divided into two
categories, namely business development and business ideas. The terms and conditions for this competition are
open specially to Malaysian youths aged from 18 years to 40 years. The most successful entrepreneur is selected
as the winner of the competition.

According to Hisrich & Peters (2002), in the field of economics, entrepreneurship not only contributes to the
increase of per capita income, but also acts as a catalyst for change in social and societal structures. Meanwhile,
according to Mohammad Shaifullah (2015), entrepreneurial activities contribute to various positive elements
such as consolidation, economic stability and prosperity. The development of entrepreneurship and the
increase in entrepreneurs indicate a positive economic development for a country. Innovation generated
through entrepreneurship expands supply and diversity in the economy.

LITERATURE REVIEW

There are many programmes in Malaysia that encourage youths, especially in rural and urban areas, to venture
into entrepreneurship. Among the programmes conducted for this purpose include the Higher Education Youth
Balik Kampung Entrepreneur programme (U2Desa), Bumiputra Youth Budding Entrepreneur (TUBE)
programme, Village Community Industry Entrepreneur Development programme, Bumiputera Entrepreneur
Start-up Scheme (SUPERB) programme andthe Rural Business programme. Challenge (RBC). However, the
RBC programme is different from the other programmes in its business plan competition approach in selecting
youth entrepreneurs to jointly develop the rural economy. Apart from that, the programme also aims to
encourage youths in rural areas to venture into entrepreneurship as an option.

The RBC programme which was implemented by the Ministry of Rural Development (KKLW) now known
as the Ministry of Rural Development (KPLB) is an excellent business challenge module according to Dermot
& Joseph (2012) who stated that the competition module in business is to encourage entrepreneurs to be
competitive, creative, confident, have a high power of innovation, think critically and to be a leader in their
endeavours. The RBC programme was conducted for six years from 2012 until 2017. However, no study has
been conducted specifically to find out if the RBC programmes that had been conducted had a positive impact
or otherwise. There is also no study conducted on the achievements of the youths who received grants as a
result of winning in the RBC programme. Evaluation is a form of benchmarking that allows for further
improvement. According to Garces, et. al., (2016), product evaluation and improvement are important steps
in minimising the risk of rejection of production of a new product. In fact, according to Norasidah et al
(2012), an evaluation of critical factors such as in finance, management, product and marketing provide
useful exposure to new business development.

100 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

The RBC programme offers lucrative prizes in the form of grants for the winners. However, the question is
whether the grants offered are sufficient for the rural youths in starting up and developing their businesses. A
re-assessment of the evaluation criteria and the value of the prizes offered in the RBC programme should also
be done. The purpose of the evaluation is to review whether the income or returns are suitable with current
needs or otherwise. In addition, the assessment can also provide input or solutions to existing weaknesses.
Evaluation is a process to identify the capabilities of a programme in terms of its advantages, disadvantages
and determine the cause of a problem. (Saleh, e al., 2018). Ranita, et al., (2018), stated that the purpose of
evaluation is to determine the suitability of the environment in helping to achieve the goals and objectives of
the programme and evaluation is also done with the aim of improving a programme and not providing proofs
of the programme.

There are several policies related to rural entrepreneurship in Malaysia, namely the NationalEntrepreneurship
Policy, Rural Development Policy and the Vision of Shared Prosperity 2030.

The economic policy is a policy that is formulated in an orderly and structured manner by the government to
ensure that the people can enjoy wealth regardless of race or religion. Malaysia is among the countries
committed to eradicating poverty. Various policies and programmes have been formulated and implemented
to eradicate poverty in Malaysia. Beginning with the New Economic Policy (DEB) which was introduced in
1971, eradication of poverty became one of the strategies to promote national unity at that time. The DEB
involves two strategies, the first is to eradicate poverty by raising economic standards and incomes and
increasing employment opportunities regardless of race. The second strategy is to accelerate the process of
social restructuring by eliminating the identification of races according to economic functions (Mamat, Saat &
Ariffin, 2014).

In turn, the string of new economic policies led to the formulation of other policies in Malaysia to enhance
economic development, especially in the field of entrepreneurship. For example, among other entrepreneurship
related policies formulated by the government are the National Entrepreneurship Policy, Rural Development
Policy and Vision of Shared Prosperity 2030. Through these policies, various business-oriented and
entrepreneurship development programmes to eradicate poverty in Malaysia have been designed by the
government. These programmes are very essential in helping the poor to increase their incomes and get out
of poverty. Among these is the RBC which was conducted by the KPLB. This programme is in agreement with
the policies that have been developed by the government in developing the nation’s economy.

RESEARCH METHODOLOGY

The selection of a study design is crucial as it shows how the whole study takes place. For this study, a
qualitative case study was chosen due to the need for this study to be implemented in the natural situation of a
phenomenon to gain meaning from the social reality experienced by the social actors themselves i.e.
entrepreneurs and officials for RBC programmes (Blaikie, 2000; Denzin &Lincoln, 2005).

A qualitative approach in the form of the interview method and narrative method were used for the purpose
of exploring meaning and experience through storytelling and interviews with informants. According to
Khairul Azmi (2018), the qualitative research involves data in the form of words or sentences collected through
interviews, videos and narratives. The narrative method used for this research was through a semi-structured
interview approach to ensure that the interviews were conducted in-depth and would become the main method
of data collection. In addition, the qualitative method of narrative through the narration of experiences is
aimed at studying the feelings, thoughts, and perceptions of informants through their experiences. The
observation method was also carried out in this study. The observation method is an alternative to collecting
information or data other than the interview method. Through this method, the researcher could observe the
behavioural changes and surrounding conditions that can provide additional information to the researcher.
The study sample of 119 people consisted of 72 RBC winners between 2012 to 2015, 17 officers and 30

101 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

villagers. The research instrument was formulated by the researchers involved based on information obtained
through interviews with the ministry (primary data) and highlights of the study (secondary data) in the form
of documents obtained from the ministry to ensure accuracy of information. This instrument had undergone a
process of validation by experts in the field and the data was analysed using Atlas.ti software.

FINDINGS AND DISCUSSION
Discussion on the findings of the study were focused on the method of implementation of the Rural Business
Challenge (RBC) programme and the evaluation of the output and outcome of the RBC programme based on
business developments as a result of the implementation of the winning projects.

a)Evaluation On The Effectiveness Of The Method Of Implementation Of The Rbc ProgrammeFor
Youth Entrepreneurs Based On The Competition Category Approach, Competition Evaluation
Method, Project Implementation Period, Value Of Grants Offered And Monitoring Method By The
Ministry.

In answer to the question of the effectiveness of RBC for youth entrepreneurs from the perspective of the
officials involved, five aspects were identified namely aspects of competition category approach, competition
evaluation method, project implementation period, grant value, and monitoring methods.
Through the interviews conducted, generally, the officers reported that the competition categories and
evaluation methods had been improved year after year since 2013 to select quality business plans as well as
far-sighted entrepreneurs in businesses. In the early years of RBC, competition categories were determined
according to the quality of the business plan while benefits to the community were considered. This was aimed
at encouraging youths to be bold in coming forward to highlight their business ideas and at the same time create
employment opportunities in rural areas. Over time, the value of the grants offered were also increased where
financial facilities were made available in the business expansion category. However, not all entrepreneurs
who were assisted were productive or performed well in running a business as there was a small number of
entrepreneurs who only wanted the money and simply vanished. In this context, effective screening and
evaluation methods need to be implemented to identify entrepreneurs who are truly eligible to receive funding.
“In general, I understand that when the RBC programme was introduced in 2012, only one category
was competed, namely the business expansion category. The purpose was for us to findyouth who
were small entrepreneurs already in business, the category or the criteria was youthswho were in
business or entrepreneurs who were in business in rural areas and had been in the same business
for slightly less than 3 years. Then, when the RBC programme went on from year to year, I
remember… in 2013 we started having IP. The 1st batch had 11 winners, in the 2nd batch the RBC
unit introduced the IP category where the IP came from various youths, meaning some had traded
and some had never traded but had an idea to trade, we acknowledged them andwe gave them each
a token as an encouragement, to encourage them to do business. (P2)

102 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

he RBC …there was no categories, only the prize category, the first prize winner, consolation and
others. The 3 main prizes were the first prize, 1 million, the second, 750 thousand, the third. 500
thousand if I'm not mistaken. And then there the fourth, fifth, sixth places, there was 300 thousand,
200 thousand and the consolation prizes of 100 thousand per person. That's all, there was no special
category. Actually, they competed not based on category but based on their business ideas which
wasmore profitable, implementable and practical to be carried out within 2years of implementation.
(P8)

In 2013, the RBC team in that year wanted to make improvements, because when we set the terms
and conditions for the competition in the PP category, it must be 3 years and above to participatein
the competition. Well, what happened to new entrepreneurs, entrepreneurs who did not meet the 3
years… that’s when they introduced the idea category (P3)

The party to be established must help the companies that are already established, maybe these
companies need more capital to grow their businesses. Another is to increase the number of new
entrepreneurs. (P1)

The process of evaluating entrepreneurs who were eligible to receive financial assistance was very
central so to ensure that the funds channeled were used according to the objectives set by the
government and could further reduce the country's poverty rate. The evaluation process which was
carried out directly at the business site raised the motivation of entrepreneurs to prove the future
of their businesses which in turn convinced the secretariat during the site visit. The allocated RBC
implementation period of 1-3 years (according to the value of the grant and type of business) was
rated sufficient to adequately see through the step by step development of a business in addition to
training and consultation given to entrepreneurs. However, the total valueof the grant given should
be adjusted according to the quality of the entrepreneur and the business to be run must be viable
in the future.

Ok, after that those who passed the RP and were eligible, they had to go for financial and technical
evaluation. So, even this financial assessment, we were not the ones who did the assessment because
we are KPLB employees, we are from various backgrounds, we had knowledge about

103 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

business, some didn’t have knowledge about finance so from there we appointed qualified people
for example the financial advisors or call the staff from the bank and for the technical evaluation,
that depended on the project itself. For example, if the entrepreneur was in tourism, we involved
personnel from MOPE, if it was fishing and animal husbandry, we pulled in the Veterinary, MOA.
Yes, we had to consider what the project was about.

After that, when we had decided which ones were eligible, we had to go for a site visit, … the site
visit was for us to confirmthat the entrepreneur had actually donethe business that was mentionedin
the proposal, for example, like, now, he is doing rural tourism (P3)

In my experience, there was an initial assessment which was to assess the backgrounds of the
participants according to age, race, qualifications, as well as the ideas. Next, their RP was assessed
in terms of the financial plan, that is, technically only, and also the extent to which the RP could
provide significant benefits to various parties, including the local community. (P4)

Usually for the first category (PP), the terms and conditions stated 3 years or more, he had to have
planning…he had to have an expected income from what he was applying for…then the benefit or
impact that he can give to the community or to the country… to the national economy, that thing
was taken into account for us to choose which entrepreneurs were suitable to be given these grants
(P1)

That is a long process…and from that process we could identify the real, prospective
businessperson. Only those who really wanted to join or wanted the business to grow always from
level 3-4 , the businessman who tried his hand at doing business or merely tried his luck (P7)

Next, the most important aspect is the monitoring process. There were several issues identified in this monitoring
activity, among them were the amended guidelines of the 4 years of the RBC programme since its inception
and the insufficient number of KPLB officers to monitor all RBC projects that had been approved throughout
Malaysia What was mentioned was that only 3 officers and 2 clerks were assigned at a time to go to the locations
to monitor RBC projects nationwide. Tasks that exceeded the capacity of the work team resulted in delays in
the process of channelling funds to entrepreneurs as monitoring reports were issued behind schedule.
Therefore, the number of officers assigned to monitor RBC projects should be increased if the programme
was to be continued in the future. In addition, every process involved in implementing the RBC programme
should include professional officers who have experience in managing the RBC. Among the
recommendations by officials is a comprehensive and effective RBC implementation flow be in place. Apart
from that, KPLB also needed to chart the maximum level of achievement of an entrepreneur to be of benefit
to society and the national economy. Some officials also suggested that the project monitoring process be
expedited to meet the expected timeline.

104 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

The issue was… a lot of improvements had to be made. Hundreds of winners and only 3 officers and
2 clerks to manage. The work team travelled all over Malaysia, you know, even police personnelat the
airports could easily recognize them. Monitoring issues was really something. And the 3 officers
were involved from the budget planning to the implementation of the programme. The competition
would be over but monitoring must continue. If you wanted it to be relegated to the state, no one at
the state JPN would do it. (P7)
I think they used to monitor according to the year of the winners. The officials monitored the winners
by the year, and each year there were more new winners. Usually if we were going for field work to
monitor, we always asked for help from the state officers. Because the state KPLB was also partof
the panel of the implementing agency for this project. I noticed that we rely a loton state officersto
monitor the progress and send reports to headquarters. (P8)
The claim process took a long time to be released to the winners. The monitoring system needed to
be amended by the department – the slow process was due to not enough manpower but how about
support from agencies under KPLB. Does the ministry really use them in supporting the
programme? (P6)

Mainly, it was about progress. Physical and financial. State officials monitored everything and
submitted the reports to HQ. Headquarters then channeled the money to the supplier, not the winner.
When buying goods from the supplier, the winner had to go through HQ to submit a claimto the
supplier and HQ handled the claim till payment was made to the supplier.

If the state official approved, when he was satisfied with the progress from our monitoring, there
was no problem channeling the money to the supplier according to what the winner wanted. The
items that the winners wanted to buy… usually, we asked for 3 price quotations from different
suppliers and we evaluated together with the technical committee. If the goods were of high

105 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

quality, practical and the prices were reasonable, the payment would be approved and directedto
the supplier. So this was the model or guideline that we followed. (P9).
In conclusion, it can be said that the RBC was a programme that had successfully impacted bumiputera
entrepreneurs, especially the Malays, although at first it was just an idea or a small business, eventually their
businesses were developed successfully with the help of KPLB. The RBC is not a waste. RBC supports the
entrepreneurs in various ways, in terms of material (government funds) and also non-material (knowledge
and morale). A comprehensive RBC implementation framework for use should be developed taking into
account every process involved, from the screening stage of participants to business monitoring. To ensure that
the RBC would stand as the largest programme in helping bumiputera entrepreneurs, cooperation from all parties
is needed.
b)Evaluation of RBC Programme Output and Outcome Based on Business Development
from the Implementation of the Winning Projects.

Current State of Winners
For the latest update of the winners, the findings showed that 99% of entrepreneurs are still in
business. 90.7% (65) entrepreneurs still maintain the same business, 8.3% (6) are in different
businesses and 1% (1) did not continue their business.

Figure 1: Current Status of Winners
106 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

“We won RBC 2014. We got 2 million. We are still in business but we are restructuring the dairy
cattle sector. (UA2)

"We drew up a proposal for 800 thousand, but won 2 million. That's how I grew the business” (UA3)

“Our business is a sauce factory and western food. Still running until now. Only we have more
western food now, fromonly western food, we haveadded otherfoods, like in Pontian, we producetom
yam, and more, it’s more variety. Since MCO, we have added more online products. We make
cookies. Homemade. We've been baking cookies, been for quite some time. It's just that it wasn’t
really commercialized then. Now it has been started. (UB4). We bought an oven that can bake bythe
volume (UB4)

"The current situation, in this pandemic, business is not good, but we can still do business, not much
but we can still sustain it." (UC2)

Challenges faced by entrepreneurs during the pandemic:

Among the main issues or challenges faced by entrepreneurs during the pandemic were movement restrictions
due to ban orders across districts and states, 72.2%, difficulty in obtaining raw materials 43.1%, and followed
by challenges of retaining existing employees, 40.3% and 36.1% of businesses had to be closed during the
Movement Control Order (MCO), entrepreneur development courses could not be conducted physically,
19.4% as well as others, 16.7%.

PANDEMIC

19.40%

72.20% 43.10% Difficulty in obtaining raw
36.10%

Figure 2: Challenges during the Covid-19 pandemic

107 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

"This pandemic situation also caused restricted movements and in terms of the price, getting raw
materials is also difficult. (UA1) Especially during the first MCO, the factory had been informed
that there would be difficulties in obtaining raw materials” (UA1)
"Don't go out of the house… I meant to say that there is no medicine for this covid, the vaccine is
not a medicine, only a preventative measure.” So you don't have to put on a mask to discipline
everyone, just walk around as usual. Investments made in Malaysia, that is a threat, does it give
opportunities to traders, no it does not, only two people can eat at a time only two people in a car,
with this the economy cannot stay open.”
"Right now we are facing issues related to the pandemic, we are really lack ing in raw materials,
face constraints in terms of working time. Usually we work six days a week, can work part time,
overtime. (UD14)
To overcome these challenges, the average entrepreneur took action by implementing online business or
online sales, 61.1% (44), 54.2% (39) implemented a different business approach and 38.9% (28) entrepreneurs
acted to change the business type to a new model as well as entrepreneurs who did not face any problems
during MCO, 5.6% (4)

Figure 3: Chart of opportunities and actions taken during the pandemic
"We have other markets, for example the international market. That is we focused on offline, for the
domestic market we focused on online, we used Facebook, we used Instagram. But for the
international market or the domestic market, our ministry opted offline, we met directly with the
PIC and highlighted our products.” (UF13)

108 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

"During Covid time from March till June, I did it online from my home, I was IT illiterate, but I was
able to make sales, it's okay for me to cover the factory workers' salaries, I got some income.I feel
like it's good online, that's why this year, in 2021, I hired a marketing staff who can go aboutit offline
and online.” (UF6)
"So apart from my products, we do online selling from here and I also share it with my 3 nephews
who have their own online businesses." (UF7)
"During this covid pandemic, distributors in the Peninsular took orders from us for them to sell
online, so they were indirectly involved… it was like that." (UF17)
Percentage Increase in Sales
Based on the findings of this study, it was reported that 100% of entrepreneurs managed to increase incomes of
which the highest percentage increase was between 30 to 50 percent at 40.3% (29 entrepreneurs) and the least
increase in sales percentage was between 10 to 20% at 9.7% (7 entrepreneurs). There were 9entrepreneurs
whose sales percentage increased by more than 100%which was 12.5% after winning the RBC.

Figure 4: Income Increase Chart

109 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

The results also showed that the highest income earned by entrepreneurs before Covid-19 was 27.8% (20
entrepreneurs) for incomes of RM 200 thousand to RM 499 thousand, 18.1% (13) entrepreneurs earned
incomes of RM 500 thousand to RM 999 thousand and RM 100 thousand toRM 199 thousand, 16.7% (12)
for incomes of RM 1.0 million to RM 2.0 million, 13.9% (10) for below RM 100 thousand and the rest,
incomes of RM 3.0 million and above , 2.8% (2 entrepreneurs ) as well as RM 2.0 million to RM 3.0 million
at 2.8% (2 entrepreneurs).

RM500K TO RM999K
RM200K TO RM499K
RM100K TO RM199K

Figure 5: Chart showing highest annual earnings prior to Covid-19

However, there was a change in the values of incomes after Covid-19 where the highest annual income value
involved incomes below RM 100 thousand (34.7%) compared to before.
The second highest was RM 200 thousand to RM 499 (22.2%) followed by RM 100 thousand to RM 199
thousand (20.8%), RM 500 thousand to RM 999 thousand (12.5%), RM 1.0 million to RM 2.0 million (
9.7%) and the others were for incomes of RM 2.0 million to RM 3.0 million (2.8%) and RM 3.0 million and
above (1.4%).

110 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

BELOW RM100K

Figure 6: Chart of Highest Annual Income Revenue After Covid-19
"Before RBC, our sales were 30 thousand, but now if we look at last year (2020) sales had
dropped because of Covid-19. Sales were about 1.5 million (2020) but the year before that sales
reached 3 million (2019). " (UA1)
"Before Covid-19, we achieved sales of 42 thousand a month." (UF2)

"Alhamdulillah, now it has increased, we can see from month to month an increase in income."
(UF10)

" Increasing." (UF5)

"Before RBC, the monthly income was, say, less than 50 thousand, but now the income is more
than 1 million per month." (UF4)

"Before RBC, my income was 100 thousand, after RBC in 2015 300 thousand, in 2016, 800
thousand, in 2017 380 thousand, this is an additional 500 thousand because we did community
projects." (UF7)
“Before RBC, my income was about 24 thousand a year. After I got the RBC grant, my income
tripled, about 72 thousand.” (UE-5)
“But income increased by 97 per cent after joining the RBC programme (EU-6)
“100-200 thousand a year. That’s a maximum of 200 thousand. After RBC, so far there is about400
thousand” (UE-8)

111 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

In terms of ROI, the findings showed that only 33 entrepreneurs (45.8%) managed to achieve ROIbetween 1 to
3 years while 29 entrepreneurs (40.3%) managed to achieve it within 4 to 7 years. While 10 entrepreneurs
(13.9%) obtained ROI within 8 to 10 years.

Figure 7: Return of Capital Period Chart

“The break-even point before RBC can be said to be a bit of a struggle. Before the RBC, I got it.
Only with this, RBC, it has helped to expand further.” (UF4)
"Compared to the value of the grant, it was 300 thousand, and to get it back, well, I took two
years." (UF7)
"Yeah actually, it took two years to get back the value of the grant." (UF8)"To
get back the 300 thousand, it took us 6 years to get it back." (UF11)
"On an investment of 300K, I had to wait three to five years to get a return on the capital." (UF15)
"About 2 years" (UB2)
"My income return was one year." (UC1)
"ROI does not take long, possible to get back in two years " (UC2

112 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

Creation of new entrepreneurs
From the interviews conducted, it was estimated that 89.7% of the entrepreneurs succeeded in creating up to
50 new entrepreneurs and that as many as 68.1% or 49 entrepreneurs succeeded in creating 1 to 20 new
entrepreneurs, 20.8% or 15 entrepreneurs succeeded in creating 20 to 50 and
5.6% i.e. 4 entrepreneurs managed to create 50 and 100 new entrepreneurs.

Figure 9: Graph of Creation of New Entrepreneurs
Among the approaches used by entrepreneurs in creating new entrepreneurs was through the appointment of
agents, vendors or stockiest (69.4%), providing training and entrepreneurship courses (54.2%) and opening
entrepreneurial opportunities through contract farming (26.4%).

Figure 10: Chart of Methods of Creating New Entrepre neur
113 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

"One time, I worked together with 10 people on their respective lands. We formed a local group of10
people. However, now there are only 3 left. Most these villagers are self-employed, they were
interested in the company I created, but from the point of view, the second generationwouldmanage.
Like the example of fathers coming here, then passing it to them, children, to manage.”(UC1)

“There are more than 10 people. This is in every state. As of now, the largest is near the Klang Valley.
There are companies that make organic soil. Every month he recreates ourproducts. That'sgood, he
buys our product, and we mix more, and again. He created another brand, actually.” (UE-4)

“Most of the new entrepreneurs I created are into farming contracts. He had uncultivated land, I gave
him a proposal and he forked out the capital, then we buy it back, his product has found its way into
the market” (UE-5)

"I have also trained one person to produce dairy products." (UA2)
Those I had trained under me from the beginning, when I won the RBC grant, I think there are many,
the headcount comes to 100 in the whole of Malaysia, but what I heard and including those that I still
keep track, there are 40 entrepreneurs in the whole of Malaysia. Actually, there are more.There are
still those doing livestock rearingeven though they are small. In number.” (UA3)

“More than 20 companies are running well, as I am doing tourism, I bring in the tourists, so that the
downstream economies like handicrafts remain viable. The handicrafts market before this waslike the
Malay proverb that goes, Hidup segan mati tak mahu. (literally-neither wanting to live norto die).
Who would want to come to Kampung Gajah? So my job is to bring tourists. Thetourists come and
they buy the items. Their business flourish. And the other chalets come to life and busy.”(UA4)

Percentage Increase in Production After Winning RBC (Annual):

It was also found that there was an increase in production after winning the RBC where 42% of entrepreneurs
managed to increase their annual production by 30% to 50% followed by an increase of 13% entrepreneurs for
the increase of 80% to 100% per year.

In addition, 12% of entrepreneurs managed to achieve an increase in production by 20% to 30%, 50% to 80%
and 80% to 100% and exceeded 100% while only 9% of entrepreneurs managed to achieve 10 to 20% increase
in production after winning RBC. It can be concluded that as many as 54.4% of entrepreneurs managed to
increase production by 20 to 50 percent a year after winning the RBC.

114 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

Figure 11: Percentage chart of increase in sales after winning RBC (Annual))

“The average profit like I said when dairy cattle used to be around was 30%. With the same valueof
15-30%. if we divide the percentage, it is about 20-30% of the original income.” (UA2)
“Many from the first time I raised the highest income of 7 thousand, 8 thousand a month to the
highest income, 80 thousand a month. If people ask how much RBC has helped, whether I can make
a living, I built my house using cash from RBC income, yes, can do a lot.” (UA3)
The increase in sales and productivity of this company is due to several factors namely product diversification
(65.3%), use of the latest technology (58.3%), results from R&D (37%) and OEMproduction of products
(20.8%)

115 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

Figure 12: Graph of factors that increase company productivity
“First is that we expanded our business. Before we won the RBC, the strawberry farm had 10
thousand trees, and there were only 8 rooms After winning RBC, expanded again. The rooms
became 32 rooms and the strawberry farm had 100 thousand trees. Sales center and café, too.”
(UA1)
."In terms of existing products, we diversified our products and through RBC grants, we went to
Indonesia for training, namely meat processing, milk processingand dairyproducts, andfromthat
point on, we diversified our products. We enter the market and… ah, as you can see, at that corner
... the variety of our products. And from the tourism point of view, we promote our products to
existing travel agents and in 2020, if there was no Covid problem, actually, I had signed an MoU
with state government agency, the Sabah Foundation for our tourism sector. ” (UA2)
“Haah, things are run simultaneously. Here and there, as there is a lot of surplus money. We thought
of an idea of what we wanted to do, instead of Duck with Salted Eggs menu, here is a menuof Fried
Rice with Salted Eggs, Roasted Duck, Smoked Duck in Spicy Chili Coconut Yellow Gravy.From there
we continue till here.” (UA3)

116 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

Creation of Job opportunities by Entrepreneurs
RBC has indeed helped in creating various job opportunities in rural areas. The results showed that almost 80%
of entrepreneurs successfully provided employment opportunities between 1 to 20 employees, 34.7%,
entrepreneurs successfully created employment opportunities for 5 to 10 employees, 26.4% 1 to 5 employees,
19.4%, 20 to 50 employees and 16.7% of entrepreneurs managed to create 10 to 20 employees and only 2.8%
of entrepreneurs managed to create employment opportunities for more than 100 employees.

Figure 13: Chart of total employment opportunities
Among the target groups that have been accepted as employees in the premises operated by entrepreneurs
are youths (83.3%), single mothers (51.4%), industrial training students (51.4%), asnaf (40.3%), people with
disabilities (19.4%), senior citizens (15.3%) and foreigners (11.1%)

Foreigners 11.10%
Industrial Training Students 51.40%
People with disabilities (OKU) 19.40%

Figure 14: Graph of target group accepted as employees
“Because those working under me are frugal. They are single mothers, villagers. About 15 of them
only. But I have contract workers for fertilizing, poisoning, who don’t need to work every day. These
15 workers have been around for quite some time. From my bachelor days to having 5 children
now. My employees have been working for 15-16 years” (UE-1)

117 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

“After converting to a travel agency, we created more job opportunities such as tour guides and
package sales agents. Yes, we contribute to SOCSO, EPF for permanent employees (six people)
”(EU-2)
As many as 7 employees that I hired and many are also part time, SOCSO, EPF. Yes, there is .”
(EU-7)
"We have reduced, now with 22 employees, including working in restaurants. At my farm, there are
single fathers, single mothers but mostly youths.” (EU-8)
“Now it is only the village youths. But at the factory, it will be open.” (UD10)
“Before this, we helped a single mother but she is no single anymore. Met her mate. Also, before
this, I did have a visually impaired person who wantedto apply for a job, I told him that the current
place is not suitable, maybe the new place will. There are those who are less fortunate.” (UD5)
"Age 50 and below. There are also former staff of ours who have disabilities.” (UD11)

118 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

The implementation of the RBC program left a significant impact on entrepreneurs in terms of improving the
business they operated. Based on the findings obtained, it was clear that the assistance provided through the
RBC program helped entrepreneurs in growing their businesses. Through the financial assistance provided,
there was an increase in capital, renovation of business premises, purchase of machines and so on which helped
increase productivity. This indirectly increased the supply of products in the market which expanded more
widely throughout the country. This directly increased the income returns of a business. This was clearly
illustrated when the average entrepreneur admitted that he managed to increase his average annual income by
30 to 50 % after participating in RBC. The capital factor was the most important resource in developing the
economy of youths in rural areas which without the assistance of capital, efforts to develop a business cannot
be implemented (Siti Khariah & Mohd Ra’in, 2016). This was also supported in a study by Nurmaizura,
Solehuddin & Hairunnizam (2017) where financial assistance such as capital injection is a form of income
generation in business for the long term and it is able to help transform individuals to become entrepreneurs
while building their own sources of income. According to Azmi, Nik Hairi & Lee (2012), based on a study
conducted on 70 entrepreneurs, an entrepreneur can be categorised as a successful group based on business
profits and the ability of entrepreneurs to make a profit for more than three years and get a return on the capital
in less than five years after the capital injection was performed. Therefore, it can be seen that most of the RBC
winners are successful entrepreneurs based on the findings which reported that entrepreneurs managed to get
a return on investment made in 1 to 3 years (45.8%) and between 4 to 7 years (40.3%) depending on the
method of financial management of a business.

In addition to impacting business development and assistance from capital injections, RBC also helped
entrepreneurs increase productivity generated in terms of volume and production of new products as well as
service productivity. Through increased revenue, the acquisition of more sophisticated machinery, the
company's infrastructure such as premises, factories, land and even better technological facilities have
succeeded in increasing productivity in terms of employee skills as well as the production of new products.
According to Liew, Zulridah & Tee (2012), the productivity of a business can be seen not only through the
number of products produced but also through the quality of work done by employees, especially in the
services sector. The results of the study showed that employers who were able to provide infrastructure,
especially better technology and ICT facilities were able to increase employee productivity. Mohd Adib &
Siti Sarah (2015), also stated that there was a significant relationship between financial constraints and
productivity of a company where a company with sufficient funds was able to increase productivity and
otherwise. Therefore, good financial resources are needed by all entrepreneurs to provide all the facilities in
order to increase productivity and quality in business. In this regard, it is clear that the RBC has an impact and
an important role in the development and in increasing the productivity of a business.

The RBC program is considered as having a huge impact in increasing employment opportunit ies especially
among rural communities. According to Norhayati, Ishak & Rahmah (2012), economic openness and economic
growth rate in a locality play an important role in the total job supply. The involvement of women in the field of
employment is declining due to family factors, childcare and others that have caused many to take the initiative
to be at home. However, according to Norehan et al (2012), as a result of financial pressures and improved
living standards, many women, especially single mothers, need employment to earn an income to meet their
needs. Therefore, job offers for this group are very much needed in rural areas which through the RBC, the
development of business in rural areas had provided employment opportunities to single mothers, asnaf, senior
citizens, village youths and the OKU. The creation of employment opportunities helped these groups generate
their own income and helped improve their standard of living. The locals also got various benefits as employees
through the EPF and SOCSO contributions implemented by the employers which is a financial guarantee for
their future. In addition, the development of businesses run by the entrepreneurs had also provided
opportunities for students which based on the findings obtained, most of these companies offered practical and
industrial training to students in rural areas and some even continued to work there after completing their

studies.

119 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

The findings of the study also showed that the RBC programme had succeeded in producing new
entrepreneurs, especially among the youths. Through the RBC, entrepreneurs successfully created various sales
agents, stockists, vendors and franchises everywhere either directly or digitally. The study found that most
entrepreneurs had successfully appointed agents and stockists for the products produced and there are even
agents and stockists who had successfully produced their own product branding through the innovations
performed. In addition, through the RBC programme, entrepreneurs also succeeded in producing youth
entrepreneurs in the surrounding communities. Through the guidance and training provided, it indirectly
provided an opportunity for the local community to do their own business. For example, through the supply
of raw materials, supply of products and more. In conclusion, the findings showed that the RBC programme
was in line with the objective of why this programme was created, which was to make entrepreneurship a career
of choice, increase the income of rural people and open business and employment opportunities for rural
people.

However, the outbreak of the Covid-19 pandemic that hit the whole world had impacted not only the health
status of the population in the country, but also the economy. In fact, according to the International Labor
Organization (ILO) (2020), it had also disrupted several economic sectors, including leaving a negative
impact on the business of RBC entrepreneurs. To curb the spread of Covid-19, various SOPs and procedures
mandated by the government included the Movement Control Order (MCO) which restricted movements
including cross-district and state bans. The implementation of MCO throughout the country had to some
extent left an impact on businesses conducted. The results of interviews conducted on RBC entrepreneurs
showed that there were several challenges that needed to be overcome by them in ensuring business could be
run during the MCO period, among them was in retaining existing employees, difficulties in obtaining raw
materials, businesses had to close during the MCO, limited movement as a result of f the ban across districts and
states as well as entrepreneur development courses which had to be cancelled especially those involving
physical meetings. These challenges inspired the entrepreneurs to ensure that the business can be run despite
facing various constraints. This was in line with the statement issued by the Department of Statistics Malaysia
2021 where the Covid-19 pandemic hada negative impact on employment and business especially in termsof
job losses and sources of income, reduced demand and sales from wholesalers and businesses, disruptions
while working, businesses or premises had to be closed and salary cuts among employees (Department of
Statistics Malaysia, 2021).

The results of the study also showed that there were entrepreneurs who continued with business as usual during
the Covid-19 pandemic and some of them were not even affected in terms of income and business despite the
implementation of MCO. The findings showed that the average entrepreneurs who were successful
in running and maintaining their businesses was the result of actions and alternatives taken by
changing the business marketing model where most businesses were conducted through online sales
rather than physical sales. In addition, entrepreneurs were also seen to change the new business
model by making improvements to the existing model and adapting the form of business to the
current situation and implementing different business approaches such as marketing through agents
and stockists, sales on social media applications such as Shopee, Lazada, Instagram, Facebook,
Telegram and so on. This action was proven effective when statistics showed that during the
implementation period of MCO, online business activities increased to 28.9 percent where most
existing enterprises and businesses tend to shift to digital product marketing and this opportunity
was also seized by many new entrepreneurs in order to survive (Berita Harian, 2020).

Therefore, it can be concluded that the RBC programme is in line with the objective to make entrepreneurship
a career of choice among youths, increase the income of the rural people and open business and employment
opportunities for the rural people. The ability and capability of entrepreneurs to deal well with crises such as
the implementation of MCO actually helped these entrepreneurs form and find various or better alternatives
to ensure businesses could run. This showed that human capital through skills and training applied to

120 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

entrepreneurs through the RBC program help in building the resilience of entrepreneurs not only in terms of
business development but also help entrepreneurs in terms of business management and better crisis
management.
CONCLUSION
This study examined the developments and challenges faced by rural entrepreneurs, focusing on the current
situation of RBC winners from 2012 to 2015. The study also discussed promising business approaches as well
as looking at some companies that had a competitive advantage during unfavorable economic situations. The
initiative of the Ministry of Rural Development (KPLB) in holding the Rural Business Challenge (RBC)
Programme conducted among rural youths is a positive feat that has made the country proud. KPLB specifically
targets at rural youths to continue doing business to benefit them directly and for the development and
sustainability of the village indirectly. This effort helps entrepreneurs in developing their businesses faster
compared to before winning this competition. In the era of Industrial Revolution 4.0 (IR4.0) which is gaining
ground, new technologies can create opportunities in rural areas that never existed before. The effective
policies, integrated efforts, and a willingness to learn from every success and failure will enableexciting
opportunities to be realised as well as shaping a thriving and highly competitive rural life.

ACKNOWLEDGEMENT
This study was sponsored by the Ministry of Rural Development (KPLB) with referenceKPLB/UD/9/2020

121 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

REFERENCES

Azmi A. M, Nik Hairi. O & Lee K. Y. (2012). Faktor Kritikal Kejayaan Usahawan Dalam Perniagaan. Journal
of Social Sciences and Humanities. Volume 7, Number 1, 034-045, AprilSpecial- 2012 ISSN: 1823-884x

Hisrich, R.D. and Peters, M.P.}2002. Business and industrial management. McGraw-HillInternational
editions

Blaikie, N. (2000). Designing Social Research. Cambridge, England: Polity Press

Breslin, Dermot & Gatrell, Caroline. (2020). Developing Insights through Reviews: Reflectingon the 20th
Anniversary of the International Journal of Management Reviews. International Journal of Management
Reviews. 10.1111/ijmr.12219.

Dermot Moran and Joseph Cohen (2012). The Husserl Dictionary., The HumanisticPsychologist,43:3, 317-
320, DOI: 10.1080/08873267.2015.1034356

Guba, E. G., & Lincoln, Y. S. (1994). Competing paradigms in qualitative research. In N. K.Denzin& Y. S.
Lincoln (Eds.), Handbook of qualitative research (Vol. 2, pp. 163–194).
Thousand Oaks, CA: Sage.

Guba, E. G., & Lincoln, Y. S. (2005). Paradigmatic controversies, contradictions, and emerging confluences.
In N. K. Denzin & Y. S. Lincoln (Eds.), The Sage handbook of qualitative research(3rded., pp. 191–215).
Thousand Oaks, CA: Sage.

Kementerian Pembangunan Luar Bandar. (29 Ogos 2019). BICARA@KPLB: ‘MemahamiHasrat
Memenuhi Harapan’. Selangor: INFRA

Khairul Azmi, J., (2012). Kesahan dan Kebolehpercayaan Dalam Kajian Kualitatif. Kertas kerjadibentangkan
di kursus Penyelidikan Kualitatif 2012. Melaka

Liew C. S., Zulridah M. N., Tee B. A. (2012). Kesan ICT terhadap Produktiviti Pekerja dalam Sektor
Perkhidmatan Terpilih di Malaysia. Jurnal Ekonomi Malaysia 46(2) 2012 115 - 126

Mamat, M. A., Saat, I., & Ariffin, K. (2014). Impak Dasar Ekonomi Baru ke atas PeningkatanEkonomi
Bumiputera Selepas Tragedi 13 Mei 1969. Perspektif Jurnal Sains Sosial Dan Kemanusiaan, 6(3), 138 -
151. Retrieved from https://ejournal.upsi.edu.my/index.php/PERS/article/view/1680

Mohd Adib. I & Siti Sarah. A. (2015). Kesan Kekangan Kewangan Ke Atas Produktiviti Firma DiMalaysia.
Jurnal Ekonomi Malaysia 49(2) 2015 87 - 95 Httapi://Dx.Doi.Org/10.17576/JEM-
2015-4902-08

Norehan. A., Rahmah. I., Zulridah M. N., & Fariza. A. (2012). Kebarangkalian Bekerja WanitaBerkahwin
di Malaysia. win di Malaysia Jurnal Ekonomi Malaysia 46(1) (2012) 107 – 117.

Norhayati. B, Ishak. Y & Rahmah. I. (2012). Faktor-Faktor Yang Mempengaruhi Pengangguran DiMalaysia.
Prosiding Perkem Vii, Jilid 1 (2012) 209 - 227 Issn: 2231-962x

Nurmaizura.M., Solehuddin.Z., Hairunnizam.W. (2017). Keberkesanan Bantuan Modal PerniagaanTerhadap
Usahawan Asnaf Dalam Konteks Maqasid Al-Syari’ah: Kajian Di DaerahKuala Terengganu dan Kuala
Nerus, Terengganu. Prosiding Perkem 12, (2017) 131 - 141 Issn: 2231-
962

Ranita Manapa, Norziah Othmana, Siti Nurashidah Roslana,Khairunnisa Ismaila, Aimi Fadzirul
122 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

Kamarubahrin. 2019. Measuring The Effectiveness Of University Programmes Based On Evaluation
Models: A Meta-Analysis. Journal of Islamic Social Sciences and Humanities. Vol.20
(1) Special Issue, Nov. 2019: 78-95
Salasiah Abdullah, Khairul Azmi Abu Bakar. (2018). Towards Secure Risk-Adaptable AccessControl In
Cloud Computing. - International Journal Of Advanced Computer Science And Applications.
Saleh, M. H., Ismail, Z., & Hussin, Z. (2018). Model Penilaian Program Tahfiz Al-Quran DiNusantara
Berdasarkan Model Penilaian Provus (Discrepancy Evaluation Model). JuPiDi: Jurnal Kepimpinan
Pendidikan, 5(2), 64-75.
Siti Khariah & Mohd Ra’in, 2016. Pembangunan Ekonomi Belia Luar Bandar. Malaysian Journalof Youth
Studies: Malaysian Journal Of Youth Studies, Jilid 14 : 2016.
https://www.researchgate.net/publication/337898819_Developing_Insights_through_Reviews_Reflecting_
on_the_20th_Anniversary_of_the_International_Journal_of_Management_Reviews
https://www.dosm.gov.my/v1/index.php?r=column/cone&menu_id=VkdmMktJWXhYSFd3dUVwa2ZrTTg
zZz09
https://www.bharian.com.my/berita/nasional/2020/06/701902/jualan-dalam-talian-meningkat- 289 peratus-
pada-april
https://www.dosm.gov.my/v1/uploads/files/6_Newsletter/Newsletter%202020/DOSM_BPPD_1-
2020_Siri-17.pdf

123 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

RESEARCH TITLE:

PERDA-TECH AS A HIGH SKILLS INSTITUTE: ACTION PLAN,
STRENGTHS,OPPORTUNITIES, AND SUGGESTED IMPROVEMENT

Prof Dato Dr Muhamad Jantan, Prof Dato Sr Dr Omar Osman, Prof Dr Rosni Abdullah,
Prof Dr Ahmad Fauzi Mohd Noor, Prof Madya Dr Azeem Fazwan Ahmad Farouk,
Dr Musa Ali, Dr Dayang Haszelinna Abang Ali
Usains
Universiti Sains Malaysia

124 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

PERDA-TECH AS A HIGH SKILLS INSTITUTE: ACTION PLAN,
STRENGTHS,OPPORTUNITIES, AND SUGGESTED IMPROVEMENT

Prof Dato Dr Muhamad Jantan, Prof Dato Sr Dr Omar Osman, Prof Dr Rosni Abdullah,
Prof Dr Ahmad Fauzi Mohd Noor, Prof Madya Dr Azeem Fazwan Ahmad Farouk,
Dr Musa Ali, Dr Dayang Haszelinna Abang Ali

Usains
Universiti Sains Malaysia

ABSTRACT

PERDA-TECH is a high-skills institution based in Penang and founded in 1987 with the primary goal of
assisting B40 students in furthering their education. An impact study was conducted involving PERDA-
TECH institutions. Two methodologies for data collection are used, namely through qualitative and
quantitative methods. This article focuses on several things, namely PERDA-TECH's Key Focus Areas
(KFA) as a High Skills Institute, the strengths of PERDA-TECH and the opportunities that can be
provide, as well as recommendations for maintaining the relevance of TVET and PERDA-TECH High
Skills Institutions in the future. A strategic plan evaluation was conducted, with an emphasis on eight
Key Focus Areas (KFA) as a road map to move PERDA-TECH in a more aggressive path. PERDA-
TECH is a company that specializes in a more proactive direction. PERDA-TECH has several advantages
in terms of graduate marketability that qualify them for employment opportunities, industry
collaboration, program recognition, and technological facilities. Based on its strengths, PERDA-TECH
has succeeded in creating opportunities for the B40 generation towards a brighter future. The two analysis
methods used were PESTLE Analysis and SWOT Analysis. Through these two analyzes, several
recommendations have been put forward to improve the PERDA-TECH policy. In conclusion, PERDA-
TECH has played a role as an institution that helps students improve the quality of life as well as produce
a quality workforce for industry in the country. In terms of graduate marketability, PERDA-TECH has
various benefits that qualify students for employment options, industry engagement, programme
recognition, and technological facilities. PERDA-TECH has succeeded in providing possibilities for the
B40 generation to have a better future based on its strengths. Based on its strengths, PERDA-TECH has
succeeded in creating opportunitiesfor the B40 generation towards a brighter future. The two analysis
methods used were PESTLE Analysis and SWOT Analysis. Through these two analyzes, several
recommendations have been put forward to improve the PERDA-TECH policy. In conclusion, PERDA-
TECH has played a role as an institution that helps students improvethe quality of life as well as produces
a quality workforce for industry in the country.

Keywords: PERDA-TECH, TVET, Action Plan, KFA, SWOT.

125 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

PERDA-TECH BACKGROUND

PERDA Advanced Technical Institute (PERDA-TECH) or PERDA Skills Institute is a post- secondary
education institution that focuses on skills education or known as TVET (Technical Vocational
Education and Training) education. PERDA-TECH has also been appointed as a Government Institute
of Higher Learning registered under the Ministryof Education Malaysia and also as an Accredited Center
under the Department of Skills Development. The institution started operating as a Training Center in
1987 and was upgraded to its current status as a High Skills Institute on 16 December 2007. PERDA-
TECH has redesigned its courses and disciplines of study in order to upgrade its status as a high-skills
technical institute, and now offers seven Certificate programmes and six Diploma programmes.

The programs offered by PERDA-TECH have received recognition from the Skills Development
Department of the Ministry of Human Resource Development for Certificates, and from the Malaysian
Qualifications Agency (MQA) for Diploma programs. In addition, recognition has also been received
from industry or professionals such as CISCO for the field of Information Technology and the Energy
Commission for the PW2 Wiring Course for the Electrical Technology Certificate Program. During the
30-year establishment of PERDA-TECH, the institution has achieved its mandate to help upgrade the
socio-economy of the B40 group through education and career training.

TVET is a skills-based post-secondary education. This demonstrates the significance of skills education
in satisfying the needs of the workforce in the country's socioeconomic development. Among the key
policies and initiatives of TVET are policy formulation to strengthen TVET education, enhance
collaboration and cooperation between the Ministry of Education and Industry (Tiple Helix model),
encourage enrollment in TVET, improve quality and relevance in TVET programs and enhance TVET
education image. The blue-collar workforce is highlighted because it is essential for the socio-economic
growth of the country, especially in emerging countries. Among developing countries that are focusing
on TVET Education to ensure the viability of the technology development industry are Japan, Germany
and Switzerland.

The goal of this project is to develop a strategic plan and action that will help PERDA- TECH achieve
its goals of enhancing the socio-economic well-being of its stakeholders, particularly in terms of
marketability and income for future graduates. Among the objectives of the study is to get feedback on
the marketability and income enjoyed by PERDA-TECH graduates. Second, identify factors related to
graduate learning outcomes and market factors that influence marketability. Third, prepare a
comprehensive strategic plan for a period of five years and ten years. Nevertheless, this research paper
focuses on three main discussions, which are related to the Key Focus Areas (KFA), strengths and
opportunities, as well as recommendations given by the researchers.

To identify the strengths and opportunities of PERDA-TECH, the researchers have developed an action
plan that includes Key Focus Areas (KFA), Strategies, Strategic Initiatives, Outputs, resources,
responsibilities and time targets to bring PERDA-TECHto the next level. The analysis was conducted
using two methods, namely SWOT and PESTLE.

This study is a case study involving an institution called PERDA-TECH, where the designof this study
uses two methods, namely qualitative and quantitative. The main framework used is based on the
Organizational Excellence Transformation Model. Qualitative data were obtained by a pilot study with
Focus Group Discussion (FGD) procedure involving four groups, namely staff, alumni, parents and
employers. As forthe quantitative data, the field study was conducted through the evaluation of the four
groups of survey forms on issues of marketability, internal factors and external factors.

126 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

BACKGROUND OF TVET

In order to prepare for the Industrial Revolution 4.0, all countries in Southeast Asia are pursuing TVET
education. For example, the four major powers in Southeast Asia namelyIndonesia, Singapore, Thailand
and Vietnam have created several initiatives to strengthen TVET education in their respective countries.
In Indonesia, the governmentis working to strengthen cooperation with industry to raise the image of
TVET. Efforts have been undertaken to improve the quality of education, improve programmes, and aim
world-class university education, among other things (Ministry of Education and Culture, 2017).

Singapore embarked on the transformation of TVET beginning in 2000, where a new curriculum was
developed with 70% practical and 30% theoretical. They have also introduced ITE known as ITE
Trailblazer, which focuses on economic and societal advancement to provide professional career-
oriented skills (Tan, 2016).

In Thailand, TVET education is placed under the jurisdiction of the Office of Vocational Education
Commission (OVET) which has the role of offering employment to 14,000 educators, in addition to
introducing apprenticeship programs and encouragingwomen's participation in TVET. It aims to boost
economic growth and is in line with the requirements of Industrial Revolution 4.0.

In Vietnam, TVET has been coordinated by the Ministry of Labor, Invalids, and Social Affairs
(MoLISA). From 2019 to 2020, the TVET strategy has been framed in terms of TVET legislation and
developed by the Vietnamese Vocational Training Accreditation Agency (VVTAA) as a TVET
transformation pathway in Vietnam. (Paryono, 2017).

Meanwhile, the Malaysian Board of Technologists (MBOT) was formed to coordinate training and
syllabus in Malaysia. The Malaysian Ministry of Education (MOE) has revamped the educational system
and made Vocational Education Transformation a national priority. In addition, diploma programs are
also offered in public and private colleges as a Public-Private Partnership (PPP) under the National Blue
Sea Strategy (NBOS) (Ahmad, 2016).

According to the Ministry of Education Malaysia, Technical Vocational Education and Training or better
known as TVET, is an education and training process that has an employment direction and has a major
focus on industry. TVET was founded with the goal of meeting industry demand as well as contributing
to economic growth, in line with globalization, the knowledge-based economy, technological
advancement and

global workforce mobility. PERDA-TECH has been introduced as one of the skills institutions in
Malaysia that focuses on TVET education and emphasizes on the practicalcomponents, psychomotor
skills, and exposure to industrial training according to the level of recognized standards.

As a developing country, TVET graduates have an advantage where they are needed by numerous
organizations in the skills-based industry due to their mastery of practical knowledge as compared to
academic graduates. This can also help to minimise unemployment among new graduates, as TVET
graduates have a high chance of finding work after graduation (Khadijah Alavi, 2015). Although
academics are the main focus, the community needs to be open in accepting skills institutions as one of
the branchesof education in Malaysia in line with the 4th Industrial Revolution.

Action plan

The researchers have drafted an action plan schedule that covers several aspects, such as Key
Focus Areas (KFA), Strategies (S), Strategic Initiatives (SI) Outputs, Resources,
Responsibilities and Time Targets. The construction of this action plan is essential to answer
the objectives of the study. The strategic plan is as follows:

127 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

ACTION PLAN: Key Focus Areas (KFA), Strategy (S), Strategic Initiative

KFA STRATEGY STRATEGIC INITIATIVES

KFA 1: Pre-TVET S1: Introduce the Pre-TVET SI 1: Providing Pre-TVET programs Incom
more
Inventory Program Preparation Program SI 2: Outreach / Pre-Enrollment Incre
Program appli
KFA 2: Source of S2: Provision and Suffic
professional and recruitment of highly SI 3: Provide a pathway for staff acade
experienced skilled academics relevant academics to gain professional Appr
teaching staff to industry development skills acade
SI 4: Recruitment of academic staff Quali
KFA 3: S3: Strengthening in accordance with the needs of the acade
Strengthening institutional governance new program More
governance Q4: Strengthening SI 5: Recruitment of visitor/adjunct instit
academic management academic staff subsi
governance SI 6: Strengthening governance share
through BPR
KFA 4: Suspensionof S5: Efficient and focused SI 7: Aligning staffing and financial Instit
government financial management processes in line with the new auton
financial resources direction sourc
in the main affairs of S6: Initiate additional SI 8: Improving management
the direction/TOR financial resources from efficiency through annual planning Progr
andgenerating training activities and CSR and additional income generation with
financein additional contributions with (S6)
activities industry, and WAQAF
bodies SI 9: Collaborate with PERDA and
KFA 5: Relevant, S7: Strengthening and industry for the provision of
quality, high- consolidating the training, and access to CSR
demand programs, curriculum through the contributions and WAQAF agencies
with high graduate TVET-based Continuous
SI 10: Strengthening existing
certificate and diploma level
programs in the short term that
meet strategic characteristics

es (SI) Output, Resources, Responsibilities and Time Targets

OUTPUT SOURCE RESPONSIBILITY TARGET TIME
ming students are Academic affairs 2021
e prepared Human resources External Relations
eased admission and finance Office 2028-2032
ications 2022-2025
Source of income Academic affairs , 2022-2025
cient number of Human resources Management 2022-2025
emic staff Human resources 2028-2032
Services Division 2028-2032
ropriate quality of
emic staff Human resources Director of PERDA- 2021
ity of experienced TECH
emic staff Human resources 2025 -2028
e autonomous and finance
tutions (limited
idiaries [without
es]/foundations)

Human resources

tutions are more Director of PERDA-
nomous to diversify TECH
ces of income
Human resources

rams that are in line Human resources Academic affairs 2021
industry needs

128 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

KFA STRATEGY STRATEGIC INITIATIVES The p
marketability Quality Improvement (CQI) with
potential. update process SI 11: Offering new certificate and chang
diploma level programs in the term
KFA 6: Industry- S11: Provide industry- medium term that meet strategic Expa
based program ready graduates with characteristics PERD
pedagogy that emphasizes SI 12: Offering and development of learn
KFA 7: Image: learning in a work professional and technology-based Incre
Superior and environment. executive training programs and to con
Relevant PERDA- entrepreneurs in highe
TECH S9: Enhance cooperation medium term
with industry and SI 13: Offering high-level (Degree) Incre
professional bodies programs that focus on the long oppo
S10: Add information on term
soft skills in graduate SI 14: Industrial joint venture Incre
academic transcripts program and PERDA-TECH (2U2I for su
model) entre
SI 15: Vocational College Diploma
Program Model MyQu
SI 16: Improving soft skills and to lon
English language proficiency and
communication

SI 17: Improving entrepreneurial
skills

SI 18: Identify industries and
professional bodies and forms of
cooperation to be implemented;
and group strategic partners by
industry/ region.

SI 19: Designing a new graduate
academic transcript.

OUTPUT SOURCE RESPONSIBILITY TARGET TIME

program is in line Human resources Academic affairs 2025-2028
following industry
ges in the medium Human resources Academic affairsand 2021
m Human resources industrial relations
2022-2025
and the role of 2025-2028
DA-TECH in lifelong 2025-2028
ning initiatives 2025-2028
2025-2028
ease the opportunity
ntinue studies to a
er level

Human resources

ease job placement Human resources
ortunities
ease opportunities Human and financial Academic affairs and
uccessful resources industrial relations
epreneurship
Human resources

uest rating (medium Human resources Head of Industrial 2028-2032
ng term) Relations Unit 2028-2032

Human resources Student welfare

129 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

KFA STRATEGY STRATEGIC INITIATIVES
KFA 8: Image: S11: Enhancing learning
PERDA-TECH that is equivalent to SI 20: Industry Partnership
Dynamic infrastructure that keeps 1. Feedback from alumni and
Institutions pace with current and industry - Survey to get
future technological expectations from alumni about the
developments. latest technologies that the industry
uses.
S12: Improving the 2. Benchmarking with
competence of teaching internationally outstanding
staff institutions.
3. Increase the amount of allocation
S13: Develop a in development from central
comprehensive strategic
plan and action plan that is agencies.
monitored periodically. SI 21: Collaboration with
Universities such as UniKL -
Encourage teachers to continue
their studies to a higher level.
SI 22: Collaboration with Industry -
Lecturer placement program in
industry especially with related
MNC companies
SI 23: Implementation of short,
medium and long term strategic
planning

SI 24: Medium and long term
branding and marketing plans

SI 25: Institutional communication Publi
plan to achieve visibility PERD

SI 26: Widening of access routes to
PERDA-TECH to cover the Northern
Corridor area (cooperation with the
Main Corridor, Kulim Hi-Tech, Sungai
Petani, Bayan Lepas, Rubber
City, Upper Kamunting, and growth
areas in the region)

OUTPUT SOURCE RESPONSIBILITY TARGET TIME

Human and financial Head of Finance and 2022-2032
resources Industrial Relations

Unit

ic awareness of Human resources 2028-2032
DA-TECH 2028-2032
Human and financial Management services 2028-2032
resources 2028-2032
2022-2032
Human resources
2022-2032
Human resources
Director of PERDA-
TECH

Human and financial
resources

130 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

FINDINGS AND DISCUSSION

In this section, some findings are obtained based on field data that have been conducted by
researchers. The focus of the discussion was divided into three main aspects, namely the Key
Focus Areas (KFA), strengths and opportunities, as well as recommendations given by
researchers to PERDA-TECH.

PERDA-TECH KEY FOCUS AREA (KFA) AS A HIGH SKILLS INSTITUTE

Researchers have formulated eight Key Focus Areas (KFA) as a guide for PERDA- TECH to
lead this institution. Key Focus Area (KFA) 1 which is the Pre-TVET Preparatory Program, has
two main goals related to students towards PERDA- TECH, reducing student admission
applications and increasing the ability of prospective students to follow Certificate and Diploma
programs and any programs that will be offered in the future. Aside from the dropping number
of enrollments, the quality of applications must also be enhanced in order for students to be better
prepared and able to graduate successfully. To ensure the success of this strategy, two common
actions are taken into account, namely to devise the content or curriculum of preparatory
programs and programs to attract prospective applicants to PERDA-TECH.

Following that, KFA 2 focuses on resources for professional and experienced instructors aimed
at addressing the issue of instructor talent input. To meet future difficulties, the quality and
quantity of teaching staff must be considered. Diversity of experience is also very important as
the needs of the industry are also changing from time to time according to the current evolution.
Initiatives need to be taken to ensure that the motivation of the teaching staff remains high, to
ensure that the new programs agreed upon do not affect the needs of the existing programs and
to diversify the experience of the teaching staff with appropriate part-time teaching staff
programs.

Apart from that, KFA 3 is related to strengthening governance. PERDA-TECH is a non-
autonomous unit within PERDA where any decision to be made must be proposed and approved
by PERDA. PERDA-TECH acts as the specification supervisor and technical evaluator in the
procurement process handled by PERDA. Autonomy for decision making in PERDA-TECH is
necessary to enable them to make more appropriate decisions. The governance of PERDA-TECH
needs to be updated and the governance of academic management needs to be strengthened in
line with PERDA-TECH as an Educational Institution under PERDA.

KFA 4 is the suspension of government financial resources in the main affairs of the direction or
Terms of Reference. Besides that, it generates finance in additional activities that are more
focused on the management of PERDA-TECH financial resources. PERDA-TECH's financial
resources are more dependent on the Central Government through PERDA. Nevertheless, this
area of focus is needed to reduce PERDA-TECH’s reliance on governments that are likely to
discontinue their allocation due to certain factors. The basic actions that need to be implemented
are efficient and focused financial management, as well as pioneering financial resources from
training activities and Corporate Social Responsibility (CSR) contributions with the industry and
Waqaf bodies.

In addition, KFA 5 involves programs that are relevant, quality, high demand and have high
graduate marketability potential. One of the issues constantly faced by educational institutions
in general, and skills training centers in particular, is the alignment of study programs with the
needs of industry. National industries suchas PERDA-TECH will be constantly changing, not
only in terms of sector composition, but also the technological development of existing sectors.
These changes will be reflected in the labor market and hence the marketability of graduates.
Therefore, the programs offered must always be relevant and of high quality to prevent
unemployment among graduates. The strengthening and consolidation of the supply program
needs to be seen from four aspects. First and foremost is the empowerment of existing programs

131 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

that are still relevant, but requires an adaptation process. In addition, it offers new programs to
reflect the needs of emerging industries such as the Industrial Revolution 4.0 and digitalization.
Next is the offering of short-term programs for those who are currently working but need skills
upgrading for the purpose of job advancement or through a change in field of work and lastly,
the offering of programs to higherlevels such as post-Diploma. All of this requires a strategy of
continuous quality improvement of the supply program.

Industry-based programs are the essence of KFA 6. To ensure the effectiveness of skills program
delivery methods, the training environment needs to reflect thesurrounding environment in which
the skills are needed. Furthermore, skills training requires guidance from those who understand
the real situation. Inaddition, prospective graduates are also exposed to other soft skills in the
world of work. The delivery method of such a program is based on the concept of "bringing
PERDA-TECH into the world of work" or "bringing the world of work into PERDA-TECH".
The focus of this KFA is to ensure that the delivery and learning that students go throughreflects
the world of work so that aspects of skills other than technical can be applied effectivelyas
feasible. To achieve this goal, the initiative should be focused at increasing the duration of
industrial training, method changes that reflect a successful vocational model, the improvement
of the soft skills of the workplace, and the empowerment of entrepreneurial skills.

KFA 7, on the other hand, involves the need for a superior and relevant PERDA- TECH image
to ensure the continuity of the planned transformation process in the medium and long term. This
is to make PERDA-TECH a relevant organization in line with the changing environment. This is
to ensure that PERDA-TECH remains relevant in the changing environment. Through strong
collaboration with many stakeholders, including industry and professional bodies, PERDA-
TECH is able to stand superior and relevant based on PESTLE and SWOT analysis. At the same
time, some internal changes also need to be considered, such as collaboration with industry,
enhancement of teaching staff competencies, and alignment of learning infrastructure with
industry needs. Graduates' images should also be exhibited to potential employers via transcripts
that demonstrate their abilities.

Finally, KFA 8, namely PERDA-TECH as a dynamic institution will have a positive impact on
the image of this institution. Image is closely related to several factors such as visibility, branding
and relevance of the institution to the community at the local, state, regional level and so on.
With the age of PERDA-TECH reaching 14 years (PERDA-TECH 2007) and 34 years (Perda
Training Institute 1987), PERDA-TECH is able to enhance its image easily through a
comprehensive action plan. Short, medium and long term focus areas as well as continuous,
consistent and periodic activities should be implemented to monitor its impact on the image of
the institution. The expected output is that PERDA-TECH will be known as a dynamic and viable
institution for its development region. To achieve this KFA aspiration, the following initiatives
include translation of strategic plan to implementation plan by detailing and refining each
strategic initiative, existence and implementation of branding plan, existence of visibility
communication plan,as well as becoming more active in local or regional development.

THE STRENGTH OF PERDA-TECH AND THE OPPORTUNITIES THAT CAN BE
PROVIDED IN THE FUTURE

PERDA-TECH adheres to the vision of becoming a leading Technical Education Institution
based on skills. Its mission is to provide quality technical skills education to meet the needs of
the market through the delivery of excellent programs based on noble values and ethics. The
establishment of this institution is based on three objectives, which are to offer full-time skills
programs or courses at the certificate and diploma levels as well as short-term skills courses.
Second, provide holistic training to all trainees to create employees and entrepreneurs who are
disciplined, positive, committed, progressive, faithful, obedient, clean, ambitious and behave
admirably. The third objective is to provide students with the appropriate skills and
entrepreneurial spirit to enable them to get a job commensurate with the skills they have or start
their own business.

132 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

Researchers have listed some of the strengths and opportunities possessed by PERDA-TECH
based on PESTLE analysis. PESTLE analysis is a strategic framework used to assess the external
environment of an industry by breaking down opportunities and risks into Political, Economic,
Social, Technological, Legal and Environmental factors. PESTLE analysis can be an effective
framework to use in Corporate Strategy Planning and to identify the pros and cons of a Business
Strategy. Inputs obtained from the PESTLE Analysis were used to design a SWOT Analysis that
included Strength (S), Weakness (W), Opportunity (O), and Threat (T).

Strength

The researchers were able to outline some of PERDA-strengths TECH's based on the
examination of the two approaches used. First, the marketability of graduates is high. Based
on a statement from the Chairman of PERDA, 75% of PERDA-TECH graduates have obtained
employment appropriate to the field they are studying. This has been proven through a survey
conducted on PERDA-TECH graduates in 2019. PERDA-TECH has also trained a total of
10,452 students since its inception. The marketability of PERDA-TECH graduates is also
evaluated very well by employers. The percentage of new intake of PERDA-TECH graduates in
the last 2 years is high (30% for Diploma level and 43% for Certificate level) and this percentage
increases if the time period taken into account is within 3 years. Not only that, the percentage of
companies accepting PERDA-TECH students to undergo Industrial Training (LI) is encouraging.
They also agreed to accept PERDA-TECH graduates to fill vacancies in the future. Therefore, it
can be seen that employers have a positive perception of PERDA-TECH graduates.

In addition, the technological facilities used in the training, the recognition of the programs
offered and the existing teaching modules are the strengths of PERDA- TECH to continue to
stand strong as a High Skills Institution. Furthermore, PERDA-TECH also has collaborations
with industry that allow students to explore fields in which they are interested. For example,
PERDA-TECH has signed a Memorandum of Understanding (MoU) with PERODUA Sales Sdn
Bhd (PSSB) to continue their collaboration that has been signed since 2016 where a total of 350
PERDA-TECH Automotive Certificate and Diploma graduates were given the opportunity to
obtain technology exposure from PERODUA.

Opportunity

Through the transformation of PERDA-TECH into a High Skills Institution, there are several
opportunities that are open due to the changes in the environment. Inthe increasingly advanced
digital era, PERDA-TECH has successfully opened up opportunities for skills careers due to the
merger of basic fields with digital technology. In addition, changes in urbanization have also
opened up opportunities for entrepreneurship where basic services are needed by the local
community. This can be proven by the phenomenon of climate change where air conditioning
installation services are suddenly required. PERDA-TECH has also attracted graduates into
entering economic sectors, especially those related to mobility and health. This has raised
awareness for CSR and Waqaf since PERDA- TECH targets the B40 group as their main focus
as a social development-orientedinstitution for the marginalized.

133 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

RECOMMENDATIONS TO MAINTAIN THE RELEVANCE OF TVET AND PERDA-
TECH HIGH SKILLS INSTITUTIONS IN THE FUTURE

Several proposals have been made to develop and improve TVET education in light of future
difficulties. The first is to change the role of the industry by expanding the network through
ongoing collaboration with relevant bodies. Second, 3D job branding and the application of 3R
culture, namely improving and intensifying critical field training and dirty, dangerous and
difficult (3D) job sectors. In addition, UNESCO has recommended to integrate Information and
Communication Technology (ICT) in TVET education to improve the quality of teaching and
learning. The fourth recommendation includes the relocation of the Human Resources
Development Fund (HRDF) to support TVET to focus on promoting trainingat the enterprise
level. The next step is to improve the public's perspective of TVET by launchinga campaign to
generate interest in andpromote the value of technical education, particularly among teenagers at
the secondary school level. Next, the National TVET Council was established to strengthen the
coordination of the Technical and Vocational Education and Training ecosystem through three
strategic thrusts that are considered to improve TVET administration and management
comprehensively.

The diversity of programs in TVET institutions can increase marketability as students can also
acquire balanced skills through high-impact programs such as the Young Leader Convention, the
1 Institution 1 Community Program and the Premier TVET Volunteer Program. The eighth
recommendation includes the strengthening of responsive and sustainable governance. Training
institutions are also advised to create a conducive environment through a positive work culture
and provide state-of-the-art facilities including relevant infrastructure and equipment. Teaching
personnel that are competent and knowledgeable are also critical because they are accountable
for developing students' interests, talents, and abilities. They also need to be responsive to any
form of technological change in the industry so as not to be outdated. The tenth recommendation
involves the realignment and offering of TVET programs in line with the demands of the
Industrial Revolution 4.0 through a process of continuous curriculum improvement which is a
mechanism to evaluate study programs whether to be established, restructured, developed new
programs or maintained with existing curriculum content. In addition, various study programs
that are responsive to industry demands can be offered, especially the Lifelong Learning Program
in the form of Upskilling and Reskilling through short courses. The final recommendation is to
establish recognition and accreditation covering the entire teaching and learning module so that
TVET graduates continue to remain competitive and compete healthily in an ever-changing job
market environment.

CONCLUSION

Finally, the researchers discovered that PERDA-TECH has successfully served asa High Skills
Institution, assisting students in the B40 group in advancing their education to higher levels. This
also provides an opportunity for graduates to qualify themselves in the employment sector that
is appropriate to the skills and courses taken. The Key Focus Areas that have been drafted are
the main pillars for PERDA-TECH so that these institutions do not stray from their main focus,
while realizing the existing vision and mission. Based on the recommendations that have been
stated, it is hoped that PERDA-TECH will be able to make aparadigm shift in terms of its policy
and administrative structure. This matter can indirectly contribute to the progress of institutions
as well as elevate PERDA-TECH on the international stage.

134 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

REFERENCES
Subkhi Sudarji (2022) 350 Pelajar Lepasan PERDA-TECH Miliki KemahiranTeknologi Perodua
https://www.utusan.com.my/nasional/2022/01/350-pelajar-lepasan-perda-tech-miliki-
kemahiran-teknologi-perodua/

Raiham Mohd Sanusi (2022) Tiada Graduan PERDA-TECH Menganggur 88 Peratus Dapat
Pekerjaan https://www.sinarharian.com.my/article/184882/BERITA/Nasional/Tiada-graduan-
Perda-Tech-menganggur-88-peratus-dapat-pekerjaan

Tanya Sammut-Bonnici (2015) SWOT Analysis
https://www.researchgate.net/publication/272353031_SWOT_Analysis

Team FME (2013) PESTLE Analysis
ISBN: 978-1-62620-998-5
https://docplayer.net/9768722-Pestle-analysis-strategy-skills-team-fme-www- free
management-ebooks-com-isbn-978-1-62620-998-5.html

Tripney, J.S., Hombrados, J.G. (2013) Technical and vocational education andtraining (TVET) for
young people in low- and middle-income countries: a systematic review and meta-analysis.
Empirical Res Voc Ed Train 5, 3 https://doi.org/10.1186/1877-6345-5-3

Bhurtel, Anup. (2015) Technical and Vocational Education and Training in Workforce
Development. Journal of Training and Development. 1. 77-84.
10.3126/jtd.v1i0.13094https://www.researchgate.net/publication/281737916_Technical_and_Voca
tion al_Education_and_Training_in_Workforce_Development

Jeanne Gamble (2013) Why Improved Formal teaching and Learning areImportant in Technical
and Vocational Education and Training (TVET), Revisiting Global trends in TVET

ISBN: 978-92-95071-57-5
https://unevoc.unesco.org/fileadmin/up/2013_epub_revisiting_global_trends_in
tvet_chapter6.pdf

Hashamuddin Yaakob, Technical And Vocational Education And Training (Tvet) Institutions
Towards Statutory Body: Case Study Of Malaysian Polytechnic
file:///Users/Apple/Downloads/TECHNICAL_AND_VOCATIONAL_EDUCATION_
AND_T.pdf

Zool Hilmi Mohd Ashari, Norzaini Azman (2015) Transforming TVET in Malaysia: Harmonizing
the Governance Structure in a Multiple Stakeholder Setting
https://www.semanticscholar.org/paper/Transforming-TVET-in-Malaysia%3A- Harmonizing-the-
in-a-Rasul- Ashari/128766ab3fb5b0106fc97ecf35fcf27852eac642

135 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

Khadijah Alavi dan Rahim Md. Sail (2015) Tahap Penerimaan Masyarakat Terhadap LatihanKemahiran
Di Malaysia, Vol. 10, No. 1 (2015) 016-028, ISSN:1823-884x http://journalarticle.ukm.my/9324/1/016-
028_Khadijah_Latihan_Kemahiran_final.pdf
(2019) Apa Itu TVET di Malaysia? https://www.kolej.my/blog/apa-itu-tvet-malaysia
Kementerian Pendidikan Malaysia, Maklumat Umum TVEThttps://www.moe.gov.my/en/maklumat-
umum-tvet

136 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

RESEARCH TITLE:

ASSESSMENT ON THE NECESSITY TO RE-ESTABLISH
DEVELOPMENT AUTHORITY OF PAHANG TENGGARA (DARA)
ANDJENGKA REGIONALDEVELOPMENT AUTHORITY (LKWJ).
Prof. TPr. Dr. Mariana Bt. Mohamed Osman, Prof. Dato’ TPr. Mansor Bin Ibrahim,
Dato TPr. Dr. Mohd Zin Mohamed, Prof. Madya Dr. Sharifah Zubaidah Bt. Syed Abdul Kader,
TPr. Dr. Syafiee Bin Shuid, Dr Noor Suzilawati Binti Rabe, Dr Zati Ilham Bt. Abdul Manaf

IIUM Entrepreneurship and Consultancies Sdn Bhd

137 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

ASSESSMENT ON THE NECESSITY TO RE-ESTABLISH DEVELOPMENT AUTHORITY
OF PAHANG TENGGARA (DARA) AND JENGKA REGIONALDEVELOPMENT
AUTHORITY (LKWJ).

Prof. TPr. Dr. Mariana Bt. Mohamed Osman, Prof. Dato’ TPr. Mansor Bin Ibrahim,
Dato TPr. Dr. Mohd Zin Mohamed, Prof. Madya Dr. Sharifah Zubaidah Bt. Syed Abdul Kader,

TPr. Dr. Syafiee Bin Shuid, Dr Noor Suzilawati Binti Rabe, Dr Zati Ilham Bt. Abdul Manaf

IIUM Entrepreneurship and Consultancies Sdn. Bhd.1

ABSTRACT

The Development Authority of Pahang Tenggara (DARA) and Jengka Regional DevelopmentAuthority
(LKWJ) were development agencies established under the purview of Ministry of Rural Development
(KPLB) as a planned development strategy to drive rapid development of under-developed regions towards
balanced development. In the year 2000, in line with the privatiation and down-sizing of rural industries,
both development authorities were officially dissolved. This paper aims to assess the necessityof the re-
establishment of DARA and LKWJin the light of six (6) main criteria namely socioeconomy, physical
development, developmentfunding, comparison with other regional development authorities (RDA) and
ECERDC, opinions by relevant parties, as well as the legal and its administration, by employing the
quantitative, qualitative approaches including theoretical studies towards primary and secondary data where
the outcomes of the study are further analyzed using the Multi Criteria Decision Making (MCDM). The
outcome of this study finds that the re-establishment of DARAand LKWJ is not vital based upon the total
matric counter of the MCDM criteria and sub- criteria. The study has concludedthat the current existing
entities either at the federal level vis-à-vis KPLB, or the state level vis-à-vis Perbadanan Kemajuan Negeri
Pahang (PKNP) can be empowered by considering additional scope and function whereby a new unit can be
establishedto give special focus on developing former regional areasof DARA and LKWJ.

Keywords: Regional development, Re-establishment

INTRODUCTION

Development Authority of Pahang Tenggara (DARA) and Jengka Regional Development Authority (LKWJ)
were once agencies under the purview of Ministry of Rural Development (KPLB) which were founded under
the Development Authority of Pahang Tenggara Act 1972(Act 68) and Jengka Regional Development
Authority Act (Act 285) respectively. The establishment of both regional development authorities (RDA)
was a planned development strategy to drive rapid development for the under- developed regions towards
balanced development.

The initiative to establish DARA was inspired by the former Malaysian Prime Minister,Tun Abdul Razak
during the dissolution of Rompin Mining Company (ROMPINCO) tin mine.DARA was established by the
Development Authority of Pahang Tenggara Law No. 68/1972,and was passed by the Parliament of Malaysia
in June 1972. The first pro tem DARA Board Meeting was held on 14th September 1971. As a corporate
organization, DARA undertakes various responsibilities to plan, coordinate and execute infrastructural,
agricultural, industrial and investment projects.

The first LKWJ pro-tem meeting was held on 30th October 1970. It was chaired by thepro tem Chairman,Datok
Abdul Razak Hussein which receive attendance of representatives from Pahang and the Federal government.
The official executive law (Pahang State Enactment

138 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

10/1971) which led to the establishment of LKWJ was passed by the Pahang Legislative Assembly in January
1971. The enactment allows LKWJ to undertake various activities and anextensive investment. This region
was governed by Jengka Development Company founded in1970 under the Pahang State Enactment 10/71.
In 1983, the company was rebranded to LKWJunder the Parliament Act (Act 1983 dueto change of company
status which was tied to financial, short staff, and administrative efficiency issues.

The main monetary source for the company at that time was from the Pahang State government, and LKWJ
was responsible to develop City Centre (Jengka City). As a corporateentity, the function of LKWJand DARA
is at a bare minimum, however, there are circumstances of administration that limits the execution of activities.

FACTORS THAT LED TO THE DECISION TO DISSOLVE DARA AND LKWJ

 The driving factors that called for the decision to dissolve DARA and LKWJ are as below

 The remaining developmental works are limited to small-scale developments;

 The types of works are mostly administrative and maintenance in nature;

 Local Government Act 1976 had impacted the role of RDA as planner;

 Overlap with other activities and agencies;

 The private sector was prepared to play role to in the state development;

 Shift of focus towards industrial development;

 Difficulty to hire plantation workers;

 The increment of state government capability in terms of expertise and labour

 Huge loss of investment activities; and

 Paradigm shift of national development pioneered by the private sector.

The suggestion to re-establish DARA and LKWJ in Pahang was brought forth in KPLB Post-Cabinet
Meeting No. 3/2019 dated 22 February 2019 which was chaired by then the Minister of Rural Development.
Following that, coordination meeting for the recommendationof the re-establishment of DARA and LKWJ
No. 2/2019 was held and chaired by the KPLB Deputy Secretary General (Development) on 15th July 2019,
which also concurred that a feasibility study is to be carried out to gather detailed and comprehensive
information related to physical development, social and economic project planning in DARA and LKWJ
areas.

AREA OF STUDY

The area of study is located within Pahang state for DARA and LKWJ operation areas based on the land
use plan before the dissolution of both RDA in 2000. DARA operation region covers1,002,197 hectare of
land which include four (4) main districts of Pahang namely Rompin (515,764 hectares - 50%)
encapsulating Bebar, Keratong, Rompin, Pontian, Endau, Pekan (276,215 hectares - 28%) encapsulating
Penyor, Lepar, Pulau Manis, Termai, Ganchong, Langgar, Pekan and Bebar, Maran (173,522 hectares –
17%) encapsulating Luit and Chenor, and Bera (36,666 hectares – 0.4%) encapsulating Bera and Triang.

LKWJ operation areas covers 196,728 hectare of land which includes four (4) main districts namely Maran
(116,146 hectares – 59%) encapsulating Bukit Segumpal, Chenor, Luitand Kertau, Jerantut (48,134
hectares – 24.5%) encapsulating Pulau Tawar, Kelola, Burau, Tembeling Tengah, Kuala Tembeling, The,
Pedah and Tebing Tinggi, Temerlih (22,731hectares – 11.6%) encapsulating Jenderak, Lipat Kajang,
Sanggang, Kerdau, Bangau, Perak and Lebak, and Bera (9,717 hectares – 4.9%) encapsulating Bera and
Triang. (Figure 1).

139 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

Figure 1: Map of Village and District Boundaries for DARA and LKWJ Former Areas.

Source: (1) Laporan DARA dalam Sejarah 1971-1999, Pahang Tenggara, (2) Laporan 16 Tahun LKWJ (1999), (3) Kajian Penentuan
Sempadan Kampung dan Penandaan Kedudukan Spatial Kemudahan Awam Kampung di Semenanjung Malaysia danLabuan, 2020

METHODOLOGY
The methodology adopted in the study of assessment of re-establishment of DARA and LKWJemploys
combination of several methods which are commonly adopted in social science study.One of the social
science study methods adopted for this re-assessment study are quantitative, and qualitative methods
including theoretical study i.e literature review via reference to available regional development
documents. The literature review focuses on the contentanalysis of documents such as global national,
regional, and state policies, as well as related reports and comparative analysis.
The primary data is collected from field study inclusive of several sets of structured interviews with
relevant parties. Discussions with policy makers within State Authority, local authority, members of
parliament and related ministries are carried out to acquire opinions withregards to re-development plan
ofboth DARA and LKWJ.
Secondary data is collected from various sources including reports, books, journals, seminary
proceedings,conferences, workshops and manually and electronically acquiredinformation. After the
dissolution of both RDA in the year 2000, most of the data and reports were not prepared according to
the previous DARA and LKWJ borders. Thus, as an alternativeto this study, the data analysis was
conducted based onthe data acquired through district and mukimlevel according to the former DARA
and LKWJ areas.
All the collected data are further analyzed using content analysis: consisting of descriptive and critical
analysis. Descriptive analysis involves analysis using percentage, frequency, table of distribution and
othermethods deemed suitable for this study to summarizedata, track trends, or distribution to explain
and become reference of study. For critical analysis,this method is chosen in line with the nature of the
studywhich employs deep research, reports

140 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

and legal documents analysis of pre- and post-dissolution of DARA and LKWJ to obtain clarification
andsupporting justification for each of the presented arguments.

Analysis using Multi Criteria Decision Making (MCDM) was construected based on six (6) main criteria
namely socioeconomy, physical development, development allocation, comparison with other RDA and
ECERDC, views of relevant parties, and legal and administration.

ANALYSIS OF FINDINGS AND DISCUSSION

The analysis and overall comparison for DARA and LKWJ former areas before, current and after the
dissolution specifically show significant similarities and differences. This section willdiscuss in detail
the background of DARA and LKWJ before and after dissolution in the light of the criteria and
subcriteria below:

i. Socioeconomy: population income for former DARA and LKWJ areas, and poverty
incident;

ii. Physical development: Infrastructure, Traditional Village (Kampung Tradisional),
Orang Asli village, and FELDA settlement;

iii. Development allocation: ECERDC and State government;
iv. Comparison with other RDA and ECERDC: population income and allocation;
v. Views of relevant parties: EXCO/ ADUN/ Penghulu Mukim and local authorities; and
vi. Legal and Administration: Privatization agreement, take over of function.

(a) Socioeconomy of DARA and LKWJ Former Areas

Table 1: Household Median Income by Administrative District, Pahang, 2012, 2014, 2016 and 2019(RM)

YEAR 2012 2014 2016 2019
PAHANG 3,067 3,389 3,979 4,440
Temerloh* 3,363 3,451 3,917 4,173
Pekan* 2,655 3,321 3,774 4,092
Jerantut* 3,441 2,765 3,422 3,781
Maran* 2,763 3,012 3,444 3,671
Bera* 2,749 2,949 3,643 3,636
Rompin* 2,722 3,289 3,485 3,579
Cameron Highlands 2,957 3,630 4,968 5,729
Kuantan 3,647 4,196 4,949 5,654
Bentong 2,649 2,560 3,497 4,220
Raub 2,390 2,627 3,515 3,805
Lipis 2,394 2,838 3,168 3,646

*Note: Districts within former DARA and LKWJ areas

Source: Department of Statistics Malaysia, 2019

Jerantut district records the highest household median income, RM3,441 followed by Temerloh with
RM3,364. Pekan records the lowest household median income, which is RM2,655followed by
Rompin (RM2,772) in terms of population income for the six districts within former DARA and
LKWJ areas. However, the overall median income level in the six districts

141 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

falls under the B40 category. In general, based on the income criteria of before and after dissolution of
DARA and LKWJ, there is a need to re-establish the said RDA.

Table 2: Poverty Incident by Strata and Administrative District in Pahang for 2016 and 2019

Absolute Poverty Incident Relative Poverty Incident

Administrative District 2016 2019 2016 2019

PAHANG 9.2 4.3 8.2 6.0
3.4 6.7 4.8
Urban 6.6 5.9 10.5 7.9

Rural 12.9 9.9
6.6
Administrative District 6.1
6.7
Jerantut* 16.2 6.4 14.3 10.0
2.9 6.8 8.9
Pekan* 14.3 3.3 11.5 10.2
0.4 4.6 6.3
Temerloh* 11.2 1.8 11.9 8.4
5.8 7.1 8.5
Rompin* 10.0 4.7 12.5 3.9
6.4 1.3
Maran* 15.8 4.0 3.0
20.0 8.4
Bera* 11.4 8.8 3.9

Bentong 10.6

Cameron Highlands 7.1

Kuantan 3.9

Lipis 18.8

Raub 5.4

*Note: Districts under DARA and LKWJ former areas

Source: HIS Pahang 2019 (2020)

In terms of poverty incident, the absolute poverty incident for Pahang improves from 9.23% in2016 to
4.3% based on Table 2. At the same time, the absolute poverty incident in urban and rural areas also
recorded a decrement at 3.4% and 5.9% respectively. The absolute poverty incident for districts within
former DARA and LKWJ areas show decrement which is a sign ofan improvement.

In conclusion, despite the decrease of percentage of absolute poverty incident for districts within former
DARA and LKWJ areas, the relative poverty incident, particularly in Pekan, Rompin and Bera show
an increase in percentage within the same period which is from2016 to 2019. Based on such increment
of relative poverty incident, where pre-assumption is made, there is a need to re-establish the said
agencies.

(b) Physical Development of DARA and LKWJ Former Areas

The table below is the infrastructure comparison for 1998 and 2020 in former DARA areas. Traffic
road development within DARA area in 2020 shows a significant increment fromthat of 1998. The
traffic roaddevelopment within LKWJ former area in 2020 also shows a significant increment from that
of 1993.

Table 3: Summary of Infrastructure Comparison in DARA and LKWJ Areas

Developmental DARA 2020 LKWJ 2020
Programmes 1998 1993
943.76km 993.76km (Federal
Traffic Road 451.60km (Federal Road/ 60.4km Road/ Jalan
Development Persekutuan)

142 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1

Developmental DARA 2020 LKWJ 2020
Programmes 1998 Jalan 1993
Persekutuan)
Electrical 98.00% 100.00% 91.60% 100.00%
Supply household household household household
Water Supply 94.95% 100.00%
household household 60.00% 99.18% household
Waste 22.45% out of household
Management Only new urban total area
areas coverage 5.37% out of total 20.45% out of total
Sewage
Centralized NA area coverage area coverage
Sewage in new
urban areas 59.30% NA
household

Source: DARA dalam Sejarah (1998), Kajian Pelan Induk Operasi Wilayah Jengka (1993), HIS Report Pahang(2019), JKR
Pahang, JalanPersekutuan (2020)

With regards to the infrastructure criteria for DARA and LKWJ former areas, it can be summarized
that there is no need to re-establish DARA and LKWJ as the infrastructural development is still being
carriedout by related agencies even after the dissolution of both RDA.

Table 4: Total Number of Villages by Category and District in DARA and LKWJ Former Areas.
Plan Land Settlement(PTR)

District Traditional VIlla Total
Fishing Village
Structured Villag
Orang Asli Villag
FELDA
FELCRA
Rancangan
Tanah Pemuda
(RTP)
Kampung Baru ina
Farmhouse

Pekan* 149 4 3 32 81 -- - 197
-- 1 167
Rompin* 94 - 17 38 17 - 13 - 84
-2 1 194
Bera* 45 - 6 15 14 - 16 - 248
-5 6 384
Maran* 155 - - 8 28 - -6 - 117

Jerantut* 213 - 1 16 10 1 -6 4 41

Temerloh* 345 - 3 19 51

Bentong 89 - - 14 8 -

Cameron 6 - - 25 - -

Highlands

Kuantan 187 7 1 6 15 - -3 - 219
2 14 - 497
Lipis 422 - 1 62 5 - 1 10 - 280
5 4 45 12 2,428
Raub 228 - 10 26 5

Jumlah 1,933 11 42 261 115

*Note: Districts under DARA and LKWJ former areas.

Source: (1) JAKOA Negeri Pahang, 2020, (2) Lembaga Kemajuan Tanah Persekutuan (FELDA), 2020 dan (3) Kajian Penentuan
Sempadan Kampung dan Penandaan Kedudukan Spatial Kemudahan Awam Kampung di Semenajung Malaysia dan Labuan, 2020,
(4) Kajian SemulaPeranan Wilayah Jengka 1993.

143 | J u r n a l L u a r B a n d a r S e j a h t e r a 2 0 2 1


Click to View FlipBook Version