Government of Malaysia is emphasizing on development of talent in the public sector, as it is the most significant resource for the federal and state services. Even though the government has invested in various programs and initiatives to develop and produce key talented human capital, Malaysia is still short of talented people and struggling to develop talent, and talented skillful people are leaving. This study fills the gap by analyzing the comprehensive literature for the federal and state services in order to bring understanding on talent management issues within Malaysian state government context. The aim of this research is to identify talent management practices affecting state government employees performance and to develop a conceptual framework explaining their relationships. Previous literature reveals that there is a positive relationship between talent acquisition, talent development and talent retention, and employee performance. Although the relationships among the five constructs have been extensively studied in the extant literature, this research is one of the few, if any, in investigating the constructs in state government agencies or local authorities in Malaysia. If empirically supported, the proposed framework may provide an effective alternative in assisting state government agencies at attracting and nurturing talented workers. Ultimately, this research proposes the policy in talent management for the state government and other government agencies in Malaysia. Talent management and human capital transformation will help the State Government in managing their staff who need to accept all the changes that occur. Environmental changes are inevitable and must be managed effectively so as not to provide negative impacts on talent management in order to provide the best service to the public. The management and transformation of this talent will also be a guide to the state government in managing human capital. With the Guidelines from Transformation of Talent management during this era, it will be used as guidance to the next phase in managing human resources especially during difficulties faced by the state government in the future. This research will come out with the Policy in The Human Capital Talent management for the State Government and other government agencies. It is hoped that this study can help and contribute to the field of public policy in Malaysia.
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