Public expenditure for technical and vocational education is important for Malaysia to produce high skilled workers to achieve the status of a developed and high-income country by the year 2020. The objective of this study is to measure the relationship between public expenditure for technical and vocational education and employability skills of the graduates of vocational colleges in Malaysia. The SmartPLS path model analysis revealed two important findings: first, recurrent expenditure was significantly correlated with employability skills. Second, development expenditure was significantly correlated with employability skills. These outcomes demonstrate that the ability of technical and vocational education administrator to provide and manage adequate financial allocation may lead to enhance graduate’s employability skills. In addition, discussion, implications and conclusion are described.
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