IEM urges focus on quality and engineering talent in Budget 2027 implementation

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IEM urges focus on Budget 2027 quality

Highlights

IEM supports Budget 2027, which allocates major investments for electricity infrastructure, transport, digital connectivity, flood mitigation, water and high-tech industries.
IEM proposes five key recommendations, including the development and retention of engineering talent through more competitive compensation and specialised technical training.
IEM welcomes the proposed RM2,500 minimum salary and RM3,400 benchmark but stresses the need for additional measures to attract engineering talent for critical sectors.

This article was translated from the original. Read the original version by our correspondent here.

Implementation focus and IEM recommendations

As reported by The Edge Malaysia, IEM outlined this position in a press statement dated 10 Oct, supporting the national budget's focus on national infrastructure, energy security, industrial development, digital transformation and human capital development.

Budget 2027 allocations include major investments in the national power grid, transport, digital connectivity, flood mitigation, water supply and high-tech industries. IEM stressed that assessments of the outcomes of this spending should prioritise lifecycle value, project governance, technical oversight and quality assurance.

The body also put forward five key recommendations, including strengthening the development and retention of engineering talent through more competitive compensation and specialised technical training. In addition, IEM wants Malaysian engineers to have broader involvement in the country's strategic projects, covering engineering design, technology development and project management, while accelerating the energy transition, digitalisation and innovation such as the use of Artificial Intelligence and Building Information Modelling.

Implications for Malaysia's workforce and competitiveness

IEM welcomed the proposed RM2,500 monthly minimum salary for graduates and semi-skilled workers, as well as the RM3,400 living wage benchmark set by government-linked companies. However, the institution stressed that additional measures are still needed to attract, develop and retain engineering talent to support critical sectors such as semiconductors, data centres and advanced manufacturing.

According to IEM, Malaysia's ability to reap long-term benefits from public investment depends on the strength of its local engineering professionals and the standards of delivered infrastructure. In line with the IEM IMPACT 2030 agenda, the institution stated its readiness to collaborate with the government, industry and academia to advance engineering excellence and ensure more sustainable public benefits.

In our earlier report on the Ministry of Works allocation in Budget 2027, we outlined the budget increase to RM10.882 billion to strengthen road networks and user safety, including major funding for the Pan Borneo Highway as well as road and bridge projects in Sabah and Sarawak. The article also highlighted increased allocations for Bumiputera G1–G4 contractors and additional funding for district engineers to strengthen implementation, progress monitoring and the delivery of quality projects.

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