PSDC Model:

Application For The SSA Scenario

LETSGA Workshop Singapore30 Jan 2008

BOONLER SOMCHITCEO, PSDC

www.psdc.org.my

3

PART ONE

Penang & Malaysia

The Basic Facts

4

• Population of 27M (2007) – multi-ethnic society

• Peaceful & politically stable• Predictable & pro-business

– Liberal investment policies – Sound intellectual property

protection• Signatories to the Bern & Paris Convention

– Good financial, banking, accounting & legal practices• English widely spoken together with Bahasa Malaysia,

Chinese & Indian dialects

MalaysiaPenang

Indonesia

Phillipines

Singapore

MALAYSIAMALAYSIA

MalaysiaPenang

Indonesia

ThailandPhillipines

Southeast Asia

Singapore

5

• Gateway to northern Malaysia• Population of 1.5M • Manufacturing &

tourism leadingeconomic growth

• 2nd smallest State, but one of the most progressive!

• 2nd largest InternationalAirport in the Country

• 3rd largest seaport in the CountryPenang’s Vibrant EconomyPenangPenang’’ss Vibrant EconomyVibrant Economy

• GDP growth – 6.7% (2005)• Full employment • Mfg. sector contribution to

GDP – 43% • Mfg. growth – 6.5% (2005)

G’town

B’worthFerry

KEDAH

PERAK

Kulim

Bayan Lepas Free Industrial Zone& Penang Cybercity

PenangBridge

Penang’s 2nd Bridge

PENANGPENANG

Industrial Parks

PENANGPENANG

6

Changing Structure of the Penang Economy

5.8%61.8%

19.7%

12.7%

2.4%

1.7%

42.9%

53.1%

1970 2005

Agriculture, Mining & FisheriesManufacturingConstructionTrade and Services

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PART TWO

The PSDC

8

1987Manpower shortage

highlighted

1989

Steering Committee

“This (PSDC) is

a good e.g. of

Malaysia Inc.

concept at work”

Tun Dr. MahathirMohamad

Former Prime

Minister of

Malaysia1994

PSDC Model (1989)

Government

AcademiaIndustry

Malaysia IncMalaysia Inc

9

Government

Industry Academia

Malaysia IncMalaysia Inc

PSDC Model (Now)

10

RECOGNITIONApprovalLicence

INFRASTRUCTUREFacilitiesBuilding

INCENTIVES• Training Support (HRDF)• Double deduction Incentive• Tax exemption

CAPITAL GRANTSet Up Grant

1989 - 1991 - US$15.8k/year1992 - 1999 - US$31.6k/year

Equipment Grant6 Malaysian Plan - US$1.5M7 Malaysian Plan - US$2.2M8 Malaysian Plan - US$4.2M

Building Grant6 Malaysian Plan - US$240K7 Malaysian Plan - US$430K8 Malaysian Plan - US$3.0M

Government’s Role

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LEADERSHIPNew Concepts / IdeasProcesses & Systems

SHARINGResources / ExpertiseTechnologyTrainers

SUPPORTCritical numbersLeverageFees

MANAGEMENT/OWNERSHIP

Set up labsUpgrade programs /facilitiesTraining Needs

Industry’s Role

12

TRAINING RESOURCE

LecturersTrainersContent ExpertsAcademic Advisors

PROGRAM DEVELOPMENT

Training MaterialsTrain The Trainer

Academia’s Role

13

PSDC Today

• Skills Training and Education Centre

• Established in May 1989

• Tri-partied (Industry, Govt & Academia)

• Non-Profit Society (Since 16.11.1989)

• 142 Members (Malaysian Inc Companies)

• Trained more than 100,000 participants

• Facilities: 230,000 sq. ft.

• Financially self-sustaining

• Part capital grant from Federal Govt.

Area: 5,000 sq ftFacilities: 3Members: 24Participants: 559Courses: 32Headcount: 2

1989

27,000 sq ft5563,71022410

1994

PSDC Today

Area:Facilities:Members:Participants:Courses:Headcount:Branch Campus:

170,000 sq ft35 10110,9915805620,000 sq ft

2004 2007

230,000 sq ft52 142> 10,000> 50080-

PSDC Today

Be The Preferred One Stop HumanResourceDevelopmentEntity

Vision

Promote Shared Learning for the Manufacturing and Service Industriesto be Globally Competitive by Providing Proactive HRD Initiatives

Mission

Members142

companies

USA 29

Japan 11

Germany 6

Chinese Taipei 4

China (HK) 1

France 1

Canada 1

By Country of Origin

Australia 1UK 2

Netherlands 1

Denmark 1

Singapore 3Malaysia 78

Ireland 1

Switzerland 1

Sweden 1

MembersBy Industry

Institution4%

Education9%

Textile1% Medical

2%

Food2%Packaging

3%

Manufacturing19%

Engineering24%Electronics /

Semiconductor36%

142companies

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Management Structure

11 ELECTED- 1 Chairman- 1 Deputy Chairman- 2 Vice Chairman- 7 Ordinary Members

4 APPOINTED

MANAGEMENT COUNCIL CHAIRMAN(Bi-Annually)

PSDC STAFF7 EX-OFFICIO- 6 (Govt agencies)- 1 (University)

Industry Govt./Academia

QuarterlyManagement

CouncilMeetings

Yearly

AGMS

1989 1989 -- 19921992

Tan Bian EeCEO,

Agilent

S K KoCEO,

Motorola

19921992--19941994

C.D. FariaCEO,

Grundig

19941994--19951995

Alfred TehCEO,

Eng Tek

1995 1995 -- 19971997

Tan Thiam SengCEO,

Komag

19971997--20012001

Robin SeoMD,

Motorola

20012001--20042004

Mohd SofiMD, AMD

20052005--20082008

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MANAGEMENT COUNCIL

Chairman

Deputy Chairman

Vice Chairman

Vice Chairman

Management Structure

22

Establishment Strategic & Business

Development

Working Group

CoE Leadership Six Sigma

EXCO

OperationsSME/LocalIndustry

MANAGEMENT COUNCIL

Management Structure

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PSDC Today –Business Model

Strategically Supporting and Strengthening Customers' Business Requirements

Human Capacity

HRDServices

Technical

Managers

Engineers

Technicians

Operators

Technology

TRAINING PROGRAMS

ProductsShort term (Skills Upgrading)Long term (Career Advancement)

Design &Development

Non-Technical

Others

Human ResourceDevelopment

Business Coaching Manufacturing / Production

PSDC Management

Pre-employmentTrainees

ProactiveHRDInitiative

SharedLearningINDUSTRY

PARTNERSHIPS

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Requirements

AcademiaHardware &Software VendorsHRD Consultants Government

SME Business Coaching

InternalTraining

OutsourcingSharedLearning

CoreCompetencies

Business

TrainingNeeds

MeetHRD

Requirements

GlobalSupplyChain

Resource& Program

Pool

PSDCOne-StopHRD Entity

Resourcesand Programs

In-HouseExpertise

Experts& Programs

Skilled Workforce

HRDServices

TrainingPrograms

Smart Partnership

ProactiveHRD

InitiativesGlobalMarketing

SkillsRequirements

Coaching

PSDC Today –Industry Partnership

Training Throughput (1989-2006)

Participants137,831

Courses 7,122

* 1 June 02 – 31 Dec 03 (19 months)

3276

156231 169 224

356 434 472 458 487766

496 580 455667 541522

9,7909,140

13,396

9,141

10,99116,104

10,476

9,9209,206

10,6468,869

6,255

3,710

2,5712,137

1,121

559

3,799

1

10

100

1,000

10,000

100,00089

/90

90/9

191

/92

92/9

3

93/9

494

/95

95/9

6

96/9

797

/98

98/9

9

99/0

000

/01

01/0

2*

2003

2004

2005

2006

2007

Fiscal Year

Part

icip

ants

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Training Needs

Managers

Engineers

Supervisors

Technicians

Operators

School Leavers

JOB CATEGORY

Basic MachiningBasic Electronics

Intro to SMTRadio RepairSoldering

Tech. SkillsPneumatics/Hydraulics

Dip. Sup. Mgmt/HRPSDMInteraction ManagementCAD/CAMAutomate MfgBasic Supervisory PSDM

PHASE 1

(1989 – 1990)

PHASE 2

(1991 - 1995)

PHASE 3

(1996 - 2000)

PHASE 4

(2001 - 2005)

HNC/HND EngineeringAdv. Machining

Cert. in E/E (C&G)Basic Automation

Chargeman AOSMTControl TechnologyRF TechnologyMAST DesignRoboticsDip. in Adv. Mftg.

Cert. In Training & Dev.

JIT FMEAPneumaticsVision SystemEmpowerment Mfg/Process Quality/Reliability

Bachelor of EngineeringAdv. Dip. In Network Centered ComputingApprenticeshipPrograms

Total Productive Mgmt Statistical Process ControlQCCHND EngineeringVacuum Tech.Control Technology

DOE TPMTQMTeambuildingDesign of ExperimentASIC DesignVLSI

Ethics ProductivityNegotiation Skills

Master of EngineeringBachelor of IT

Calibration/MetrologyAdv. Technical TrainingTroubleshooting /

Maintenance

ASIC DesignVLSI

Project ManagementTPM

Software SimulationIC DesignDynamic ModellingRF Technology

E-LearningSupply Chain MgmtLeadershipKnowledge Mgmt

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Value – Added Services• World Class Engineering & Technical Diplomas

• Design & Development Training Programs

• Relevant Corporate Interventions

• SME Training & HRD

• Events Management

• Shared Services

• Rentals

• SME Product & Service Promotion / Exhibition

• HRD & TNA

• Institutional Set-up

• Process Engineering & Improvement

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PSDC Source of Income

• Membership Fee

• Rental of Facilities

• Income from Training Business

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• Sustainable Workforce Training Entity to meet the needs of industry.

• Provide skills upgrading for all level of employees

• Provide educational programs for career advancement

• Platform for public-private collaboration in HRD

PSDC Impact

• Pro-Active - Leading Edge• Cost Effective - Lean & Focused• Contemporary & Advanced Technology• High Quality at Competitive Cost• Full Support of Members & Government• High Profile - Good Marketing• Good linkage between Public & Private Sectors• Strategic Alliance - Think Win-Win

Success Factors

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PART THREE

Relevant Applications

for the

African Scenario

• Identification of measurable and achievable objectives

• Identification of committed stakeholders• Ability to secure commitment of stakeholders• Strong government support• Identification of sources of funding for set-up• Identification of sources of income • Identification of relevant training programs• Anticipate and overcome possible challenges

Factors to consider in the African Context

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Key Learning

1. PSDC Tripartite Model Works

2. Shared Vision for Development

Govt.Must involve all stakeholders Industry

Academia3. Training Institutions Must Innovate or Die

- Disruptive Innovation- Sustainable- Demand Driven

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Phase 0: Initial set-up

• Co-operation and commitment of industry - industry-led- industry-driven

• Support of local and central governments• Careful selection of key personnel in Management

Council• Clear statement of vision, mission and goals

- needs to be quantifiable • Location within the industrial estate

Lessons Learnt

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Phase 1: Growth

Lessons Learnt

• Identification of a suitable site with capacity to expand• Maintain support of all parties• Identify value-added courses

- close liaison with industry to determine training needs• Focused 20:80 strategy• Appropriate activities to support training function • Financially self-sufficient

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Phase 2: Expansion

Lessons Learnt

• Remain focused and enthused- close liaison with members

• Keep up with technology

• Be value-added and value-creating

• Human Capacity Building hand-in-hand with Industrial Development