TALENT DEMAND AND SUPPLY IN THE

C&M INDUSTRY
ICT EMPLOYMENT OUTLOOK IN MALAYSIA LABOUR MARKET

INSTITUTE OF LABOUR MARKET INFORMATION AND ANALYSIS (ILMIA)

MINISTRY OF HUMAN RESOURCES
DD MONTH 2014

CONTENT

INTRODUCTION: ROLE OF ILMIA

POPULATION & DEMOGRAPHY

EMPLOYMENT IN ICT SECTOR

GRADUATES RELEVANT TO ICT SECTOR

ISSUES IN WORKFORCE

ILMIA PORTAL

INTRODUCTION: ROLES OF ILMIA

1.

ILMIA was established in 2012 and its core functions include:

a) To conduct labour market research and analysis
b) To disseminate labour market information.To consolidate disparate
labour market statistics in a data warehouse to better reflect the
evolution of conditions in Malaysias workforce and workplace
towards a high income nation.

2.

ILMIA strives to become the Centre of Excellence for:

a) Analysing labour market trends and emerging human capital
issues
b) Contributing to the betterment of human capital planning and
effective labour market policies

CONTENT

INTRODUCTION: ROLE OF ILMIA

POPULATION & DEMOGRAPHY

EMPLOYMENT IN ICT SECTOR

GRADUATES RELEVANT TO ICT SECTOR

ISSUES IN WORKFORCE

ILMIA PORTAL

Structure of Malaysias Labour Force, 2013

Working Age Population

20.3 million

Labour force
participation
rate (LFPR)

67.0%

Labour Force
13.6 million

Outside Labour Force

6.7 million

Unemployment
rate
3.1%

Employed
13.2 million

Unemployed
424.6 thousand

Source: Labour Force Survey Report 2013, Department of Statistics, Malaysia

Key highlights in the first half of

2014
1

Real GDP
growth

GDP registered a strong growth at 6.3% as compared

to 4.4% during the same period in 2013
Growth was supported by sustained domestic
demand, especially the private sector and recovery of
the world economy
Services and manufacturing sectors remained the key
contributors to growth

Source of
growth

Current account
balance

Current account balance continued to record a surplus

External sector

Robust exports performance in line with the

improvement in external demand

Malaysian economy is expected to grow between

5-6%...

Malaysia

GDP Growth (%)

2013

2014

2015

2016

2017

2018

2019

2020

4.7

5.2

5.0

5.2

5.2

5.2

4.7

5.8

5.5

5.2

5.1

4.7

4.5

4.4

4.7

6.0

5.4

5.3

5.6

5.9

5.5

5.1

4.5

5.4

4.6

4.9

Source:
WEO, Oct 2013;Apr 2014;
IHS, Sept 2014;
EIU, Sept 2014.
Malaysia Economic Monitor, June 2014
Global Economic Prospects, Jan 2014
7

Services- and Industry-driven

Economy

6%
7%
5%

5 - 6% p.a.

23%
7%

8%
4%

Agriculture
Mining
Construction
Manufacturing

25%
59%
Services

56%

(EPU Target)

More food-based
agriculture
Malaysia producing high
value-added goods
Capital deepening in
industries
Dynamic manufacturing
with more K-intensive
industries
Modern services
finance, business, ICT,
and manufacturingrelated services

Way Forward: High-income Nation

by 2020

2000
GNI per capita

GNI per capita

Assumptions

US$3,823
GNI : US$89.8 bn
Population : 23.5 mn
Inflation rate : 1.6%
Exchange rate : 3.8

2013

2020*
(EPU Target)

GNI per capita

GNI per capita

US$10,106
(Minimum level of high-income
country status = US$12,616)

GNI : US$302.3 bn
Population : 29.9 mn
Inflation rate : 2.1%
Exchange rate : 3.15

US$18,000
(Minimum level of high-income
country status = US$15,000)

GNI : US$600 bn
Population : 32.8 mn
Inflation rate : 2-3%
Exchange rate : 3.1
9

EMPLOYMENT BY MAJOR SECTORS

NO.

SECTORS

1.

# EMPLOYED (000)
2012

2013

Agriculture, forestry and fishing

1,601.7

1,682.1

2.

Mining and quarrying

80.6

87.1

3.

Manufacturing

2,227.9

2,214.8

4.

Electricity, gas, steam and air conditioning

supply

62.1

61.0

5.

Water supply; sewerage, waste

management and remediation activities

80.4

82.9

6.

Construction

1,163.7

1,244.1

7.

Services

7,506.7

7,838.0

TOTAL

12,723.2 13,210.0

Source: Department of Statistic Malaysia

EMPLOYMENT BY OCCUPATION
# Employed (000)
NO.

Category
2012

2013

1.

Managers

686.2

695.5

2.

Professionals

1,246.4

1,284.0

3.

Technicians and associate

professionals

1,284.3

1,288.4

4.

Clerical support workers

1,170.0

1,189.5

5.

Service and sales workers

2,625.6

2,866.1

6.

Skilled agricultural, forestry and

fishery workers

1,175.3

1,162.9

7.

Craft and related trades workers

1,414.2

1,452.7

8.

Plant and machine-operators and

assemblers

1,548.1

1,607.7

9.

Elementary occupations

1,573.1

1,663.3

TOTAL

12,723.2

13,210.0

Note : Category of occupation follow MASCO 2008

Source: Department of Statistic Malaysia

CONTENT

INTRODUCTION: ROLE OF ILMIA

POPULATION & DEMOGRAPHY

EMPLOYMENT IN ICT SECTOR

GRADUATES RELEVANT TO ICT SECTOR

ISSUES IN WORKFORCE

ILMIA PORTAL

EMPLOYMENT IN ICT SECTOR

Based on the ICT Census (2012) by DOSM

PERCENTAGE DISTRIBUTION OF
EMPLOYMENT IN ICT SECTOR

Source: ICT Census (2012), DOSM

CONTENT

INTRODUCTION: ROLE OF ILMIA

POPULATION & DEMOGRAPHY

EMPLOYMENT IN ICT SECTOR

GRADUATES RELEVANT TO ICT SECTOR

ISSUES IN WORKFORCE

ILMIA PORTAL

Current Supply Pipeline Of Graduate

From IPTA

Source: Ministry of Education Malaysia

Profile of Graduates by Field of Study

(Diploma)
82,087

30,000
2,041

25,000

Students ('000)

455

5,009
20,000

3,479

15,000

27,511

34%
1,871

10,000

3,803

16,527
5,000

3,575

Sastera
& Sains
Sosial

Sains

Teknik

ICT

Pendidikan

11,950

31,339

IPTA

38%
10,140

Students ('000)

25,000

1,585

20,000
15,000

IPTS Pendidikan

ICT

Teknik

Sains

Sastera
& Sains
Sosial

14,091
22,106

10,000

27%

5,000

205

107

66

1,131

753

6,430
0

Sastera &
Sains Sosial

Sains

Source: Tracer Study 2012, MOE

Teknik

ICT

Politeknik

1%
2012
Responden

IPT
lain

ICT

Teknik

Sains

Sastera
& Sains
Sosial

17

CONTENT

INTRODUCTION: ROLE OF ILMIA

POPULATION & DEMOGRAPHY

EMPLOYMENT IN ICT SECTOR

GRADUATES RELEVANT TO ICT SECTOR

ISSUES IN THE WORKFORCE

ILMIA PORTAL

Structure of workforce
planning
Demand

Supply

Forecast talent needs

Attrition/retirement rates

Critical and pivotal roles

New skills/positions

Projected employment

Current employment

Wage trends

Talent pipelines

Job openings

Demographic trend

Government policy

External

Current and projected headcount

Internal

LM conditions

Strategy and business goals

LM conditions

Perspective of labour demand

and supply

What is required?

What is provided?

Skills level/competency
Various industries require
different types of labour

What provided by education

delivery system.
Schools, training institutions,
universities

Labour market issues

Unemployment
Wages
Productivity

20
20

Distinct Wage Premiums for Specific Skills Are Offered

by Employers: ICT proficiency and Presentation skills
are Best Rewarded

Returns to Skills by Occupation: NKEA

Managers

Professionals

computer
language
math
people
present
solving
writing

Technician/Associate

computer
language
math
people
present
solving
writing

computer
language
math
people
present
solving
writing

Clerical Support

Service/Sales

computer
language
math
people
present
solving
writing

Elementary

computer
language
math
people
present
solving
writing
-.1

.1

.2

.3

computer
language
math
people
present
solving
writing
-.1

estimated return
Source: NER 2011

.1

.2

.3

-.1

std. error of estimate

.1

.2

.3

Specific Skills in Deficit Across All Firms are

English Language and ICT,
Particularly for Technicians, Clerical and Service
Workers
Skill Deficits by Occupation: NKEA
Managers

Professionals

Analysis
Communic
IT
Language
Literacy
Math
Solving
Teamwork
Technical

Analysis
Communic
IT
Language
Literacy
Math
Solving
Teamwork
Technical

Analysis
Communic
IT
Language
Literacy
Math
Solving
Teamwork
Technical

Clerical Support
Analysis
Communic
IT
Language
Literacy
Math
Solving
Teamwork
Technical

Service/Sales
Analysis
Communic
IT
Language
Literacy
Math
Solving
Teamwork
Technical

.05

Source: NER 2011

.1

.15

.2

Technician/Associate

The adequacy of
vocational training is
a concern raised by
employers who report
that technicians lack
proficiency in many
key technical skills

Elementary
Analysis
Communic
IT
Language
Literacy
Math
Solving
Teamwork
Technical

.05

.1

.15

.2

.05

.1

.15

.2

ICT/Services Firms with Deficits in More Skills

Pay Much Higher Wages for Managers,
Professionals, and Clerical Workers

This sub-sector is not

willing to pay more
for skills deficits
among technicians
and only for some
skills among
elementary workers.

OTHER ISSUES IN ICT SECTOR

NO.

SUPPLY SIDE

DEMAND SIDE

1.

Perception - ICT industry does not

offer promising career opportunity

2.

Widespread misconception among Declining interest in among young

students that ICT required
graduates in ICT jobs which requires
extraordinary skills in Maths
long working hours

3.

Lack of professional recognition in

the ICT industry as compare to
medicine, engineering and
accountancy

Quality and competency of ICT

graduates in meeting the ICT
demands

Public and private universities are

still lagging behind in creating
globally recognized ICT products
and services lack of R&D and
patent
Source: PIKOM ICT Market Outlook, 2014

Training in ICT

(in RM 2000)
2250

Training in Computer Firms

(2005 - 2008)
45%

2000

40%

1750

35%

1500

30%

1250

25%

1000

20%

750

15%

500

10%

250

5%

0%
2005

2006

2007

Average real
training
expenditure
per worker
among
training firms

% of firms
with positive
training
expenditure

2008
Source: DOS, Establishment Survey, 2007.

Training in ICT
Training in Computer Firms
by Sub-Industry Group (2007)

(in RM 2000)
3000
A: Hardware
Consultancy /
Maintenance and
Repair of Office
B: Software
Consultancy and
Supply
C: Data Processing
Services / Data Base
Activities / Other
Activities

45%
40%

2500

35%

2000

30%

25%

1500

Average real
training
expenditure
per worker
among
training firms

20%

1000

15%
10%

500

% of firms
with positive
training
expenditure

5%

0%
A

Source: DOS, Establishment Survey, 2007.

The labour market transformation for high

income economy under 10th MP.

Source: 10th MP , Economic Planning Unit

27

CONTENT

INTRODUCTION: ROLE OF ILMIA

POPULATION & DEMOGRAPHY

EMPLOYMENT IN ICT SECTOR

GRADUATES RELEVANT TO ICT SECTOR

ISSUES IN WORKFORCE

ILMIA PORTAL

ILMIA PORTAL

ILMIA Portal was launched in December 2013 to realise the mission of

dissemination of issues and trends in Malaysia Labour Market.

ILMIA DASHBOARD
Gateway To Labour Market
Information

www.ilmia.gov.my

ILMIA PUBLICATION
Promoting The Study Of Labour
Issues

THE END
&
THANK YOU

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