KUALA LUMPUR: The Institute of the Motor Industry (IMI) is calling on Malaysia’s automotive companies to future-proof their businesses by equipping their workforce with the right skills through training.

New research by the IMI breaks the myth that training costs companies money and overwhelmingly demonstrates that there is a clear and significant financial return.

Two recently completed return on investment (ROI) studies done by the IMI and co-funded by UK Commission for Employment and Skills (UKCES) on apprenticeships and management training and up-skilling provide a strong economic case for training of automotive personnel.

The study on apprenticeships shows that vocational training can generate up to 300% ROI while another study reveals up to 212% ROI to be gained from management training interventions.

The two year IMI project to ascertain the ROI for apprenticeships provided definitive proof that vocational training can play a vital role in reducing unemployment among the young.

The research shows that by the end of their third year, a well-recruited apprentice can generate between 150% and 300% ROI.

Trained apprentices with no experience are able to generate profit within 18 to 24 months– much earlier than was previously assumed.

In separate research on management training, it was revealed that automotive retail businesses which invest in structured learning and development for management staff, have managers that score better in customer service and who demonstrate higher confidence and stronger competence in their job.



The study reveals that having managers undergo after-sales dealer network management development programmes can yield up to 118% ROI for automotive businesses while IMI accreditation in automotive management can yield up to 212% ROI.

“The IMI’s ROI study clearly demonstrates that management training in all areas will bear fruit for a company’s bottom line. In this sector we are often guilty of promoting people on technical ability rather than focusing on the skills that become critically important when they become leaders. Employers must not disregard management training if they wish their managers to reach their maximum potential,” said senior manager of IMI South-East Asia Matthew Stuart.

He added that both studies clearly show that training is one of the most important areas businesses should focus on; with the biggest possible gains achievable in terms of ensuring a business is competitive and profitable in a challenging market environment.

“This is especially crucial in light of the development of the automotive sector in Malaysia, whereby there is a dire and increasing need for automotive personnel to acquire new skills that meet global standards and are relevant to the requirements of emerging technologies and new advances that are being adopted across the sector,” added Stuart.

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