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This is a report of a joint project run by the World Bank, the United Nations Development Programme (UNDP) and the Economic Planning Unit (EPU), Prime Minister's Department. It presents the findings of a study of enterprise-based training in Malaysia's manufacturing sector. The data comes from a survey of 2,200 companies. The study investigates the number and outcomes of employer sponsored training. This covers in-house company programs, training from external providers, and the role of government policies and incentives in encouraging private sector training. The study also looks at technology in firms, their use of quality control systems, and the skill requirements associated with the use of new technology and organisational change. The report concludes that while some firms do provide training, in general most Malaysian firms under-invest in employee training. Recommendations are offered on improving the collection and dissemination of training information, making training and technology policies more effective, and developing better coordinated, proactive policies to support small and medium industries.