In the Tenth Malaysia Plan (10MP), the government has announced to abolish the guaranteed placement for trainee teachers who were pursuing their studies in Teacher Education Institute of Malaysia (TEIM), Public Higher Educational Institutions (PuIEI) and the Private Higher Educational Institutions (PrHEI). As such, this study discusses the latest issues in education in Malaysia related to the abolishment of guaranteed placement for trainees which will be implemented starting 2011 to 2015. This study used qualitative methods, through literature review and document analysis. The research finding shows that there are six major rationales that lead the government in deciding to abolish guaranteed placement for trainee teachers which are, to dignify the teaching profession, to produce a world-class human capital, transition to open systems in teacher training, to create an excellent-teacher environment, to eradicate the community’s perception regarding the marketability of students of teaching field, and emulate the example of developed countries. In conclusion, the government decided to abolish the guaranteed placement in order to improve the quality of teachers and improve the teaching profession in producing students who are competitive and high achieving thus can compete globally.