21st Century Skills and the Digital Economy Readiness Among TVET-Focused University Students in Malaysian Technical University

The digital economy, a term coined for the future knowledge and creativity-based economy shaped by the Fourth Industrial Revolution's expansion of Artificial Intelligence, robotics, and automation, had a massive impact on higher education. Universities implemented educational technology and innovative pedagogical approaches to foster 21st century skills, which were expected to be the success formula for university graduates in the digital economy. The impact of Covid-19 accelerated the improvement in university courses. Work from home, virtual collaboration, and remote learning have accelerated the demand for 21st century skills in the labour market. TVET is an ideal solution to the digital economy's challenges of unemployment and precarity. However, there is still a research gap regarding digital economy readiness, the status of 21st century skills, and the relationship between skills and digital economy readiness among TVET -focused university students. In this correlational study, 219 students from a Malaysia University Technical Network (MTUN), a TVET-focused university in Malaysia, participated. As an instrument, a 24-items questionnaire was used. A descriptive analysis reveals a high level of perceived problem-solving and creativity abilities. Leadership and innovative skills were also rated highly, though not as highly as perceived problem-solving and creativity abilities. The perceived readiness for the digital economy is also high. The items were found to be extremely valid using Confirmatory Factor Analysis. The fitness of the Measurement Model and the Structural Model is exceptional. The Structural Equation Model demonstrates the strong links between innovation and problem-solving abilities in the context of digital economy readiness.