The relevance of vocational and higher education to industry needs is a key issue in human resource development and enhancing national competitiveness. Technological change, digitalisation, automation and the dynamics of the world of work demand graduates who not only possess academic knowledge but also master technical competencies, digital literacy, communication skills, problem-solving abilities, collaboration and adaptability. However, a gap still exists between graduate competencies and industry needs, caused by curricula that are not yet responsive, limited practical facilities, educators’ lack of industry experience, students’ lack of work experience, and sub-optimal industry involvement in the educational process. This article aims to critically analyse the nature and causes of the graduate competency gap and to examine strategies for strengthening the ‘link-and-match’ between educational institutions and industry. This study employs a literature review using a descriptive-qualitative approach. The findings indicate that strengthening ‘link-and-match’ requires the alignment of curricula based on industry needs, project-based learning, relevant work placements, the involvement of practitioners, the enhancement of teachers’ and lecturers’ competencies, certification based on occupational standards, the strengthening of partnerships, and the utilisation of tracer studies and labour market data. ‘Link-and-match’ must not be limited to administrative relationships but must be realised as a strategic partnership that is measurable, sustainable, and focused on graduate quality and career sustainability. In this way, vocational education and higher education can produce graduates who are competent, adaptable, innovative, ethical, and capable of responding to changing industry needs.