The reformation of education has moved towards the fourth industrial revolution (IR 4.0). The development of a nation focuses on the quality of education. Education is seen as a panacea to solve issues relating to human capital development. In Malaysia, human capital development is much emphasized , as a successful human capital development will gear the nation towards being a developed country. Malaysia aims to be one of the developed countries with the aspiration that the human capital will drive the aspiration to be successful. However, there are issues arousing from human capital, where education is said to be the main cause of these issues. Limited research focuses on the issues in human capital development. Thus, this paper aims to discuss the educational theories and issues related to human capital development. The macro, micro and human capital theories are among the important theories to be looked into as they help in guiding the education towards its aim. The issues related to the human capital are a lack of 21st-century skills, a decline in English language proficiency and deteriorating moral and ethical values in employees. Implications and recommendations are also provided to curb those issues. Overall, these educational issues need to be addressed and inhibited for a smooth journey towards being a developed country.
Keywords21st-Century SkillsEducational TheoriesEnglish LanguageHuman Capital DevelopmentMoral and Ethical Values
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