Advancement of scientific and technological development is a key strategic factor to build capability in technology. Strengthening technological capability has been seen as a crucial element in enhancing a country's productivity and at the same time to stay competitive. Malaysia's decision to embark on building its technological capability is related to the country's ambition to become a fully developed and modern nation by the year 2020. To achieve this objective, Malaysia must have sufficient supply of human capital. Investment in skilled human capital is considered one of the most critical functions of long-run technological enhancement. This paper provides a discussion on human capital development setting in Malaysia. It will look at factors that have influenced the process of skills formation in the country and outline some suggestions for enhancing Malaysian talents development. It is hoped the suggestions offered would provide useful guidelines for developing and sustaining the supply of skilled human capital in achieving the aspirations of Vision 2020.
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