3 ilmia slides talent demand and supply in the c m industry

7/23/2019 3 ILMIA Slides Talent Demand and Supply in the C M Industry

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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



INTRODUCTION: ROLE OF ILMIA

POPULATION & DEMOGRAPHY

GRADUATES RELEVANT TO ICT SECTOR

1

2

4

EMPLOYMENT IN ICT SECTOR3

5 ISSUES IN WORKFORCE

6 ILMIA PORTAL

CONTENT



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 disparatelabour market statistics in a data warehouse to better reflect theevolution of conditions in Malaysia’s workforce and workplacetowards a high income nation.

2. ILMIA strives to become the Centre of Excellence for:

a) Analysing labour market trends and emerging human capital

issuesb) Contributing to the betterment of human capital planning and

effective labour market policies

INTRODUCTION: ROLES OF ILMIA






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6 ILMIA PORTAL

CONTENT



Working Age Population

20.3 million

Outside Labour Force

6.7 million

Unemployment rate

3.1%

Labour forceparticipationrate (LFPR)

67.0%

Labour Force

13.6 million

Employed

13.2 millionUnemployed

424.6 thousandSource: Labour Force Survey Report 2013, Department of Statistics, Malaysia 5

Structure of Malaysia’s Labour Force, 2013



1

2

• GDP registered a strong growth at 6.3% as compared

to 4.4% during the same period in 2013

3

Real GDP

growth

Source of

growth

Current account

balance

4 External sector

• 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

• Current account balance continued to record a surplus

• Robust exports performance in line with the

improvement in external demand

6

Key highlights in the first half of

2014



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

M a l a y s i a

GDP Growth (%)

7

Malaysian economy is expected to grow between

5-6%...



5 - 6% p.a.

59%

23%

5%7%

6%• 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 manufacturing-

related services

Services

Manufacturing

ConstructionMiningAgriculture

56%

25%

4%8%

7%

(EPU Target)8

Services- and Industry-driven

Economy …



20002013 2020*

US$3,823

GNI per capita US$10,106US$18,000

GNI : US$600 bn

Population : 32.8 mn

Inflation rate : 2-3%

Exchange rate : 3.1

GNI : US$302.3 bnPopulation : 29.9 mn

Inflation rate : 2.1%

Exchange rate : 3.15

GNI : US$89.8 bnPopulation : 23.5 mn

Inflation rate : 1.6%

Exchange rate : 3.8

GNI per capita

GNI per capita

(EPU Target)

(Minimum level of high-income

country status = US$15,000)

GNI per capita

Assumptions

(Minimum level of high-income

country status = US$12,616)

9

Way Forward: High-income Nation

by 2020 …



NO. SECTORS# EMPLOYED (‘000)

2012 2013

1. 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 activities80.4 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 MAJOR SECTORS



NO. Category# Employed (‘000)

2012 2013

1. Managers 686.2 695.5

2. Professionals 1,246.4 1,284.0

3.Technicians and associate

professionals1,284.3 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 workers1,175.3 1,162.9

7. Craft and related trades workers 1,414.2 1,452.7

8.Plant and machine-operators and

assemblers1,548.1 1,607.7

9. Elementary occupations 1,573.1 1,663.3

TOTAL 12,723.2 13,210.0Note : Category of occupation follow MASCO 2008Source: Department of Statistic Malaysia

EMPLOYMENT BY OCCUPATION






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6 ILMIA PORTAL

CONTENT


http://slidepdf.com/reader/full/3-ilmia-slides-talent-demand-and-supply-in-the-c-m-industry 13/30Based on the ICT Census (2012) by DOSM

EMPLOYMENT IN ICT SECTOR



Source: ICT Census (2012), DOSM

PERCENTAGE DISTRIBUTION OF

EMPLOYMENT IN ICT SECTOR






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6 ILMIA PORTAL

CONTENT


http://slidepdf.com/reader/full/3-ilmia-slides-talent-demand-and-supply-in-the-c-m-industry 16/30Source: Ministry of Education Malaysia

Current Supply Pipeline Of GraduateFrom IPTA



5,009

3,479

2,041

0

5,000

10,000

15,000

20,000

25,000

30,000

IPTA

27,511

Pendidikan

455

ICTTeknikSains

S t u d e n t s ( ' 0 0 0

)

Sastera& Sains

Sosial

16,527

10,140

11,950

3,575

3,803

1,871

31,339

Sastera

& Sains

Sosial

SainsTeknikICTPendidikanIPTS

2012Responden

82,087

38%

34%

1%

27%

Source: Tracer Study 2012, MOE

6,430

0

5,000

10,000

15,000

20,000

25,000

SainsSastera &

Sains Sosial

Teknik

14,091

S t u d e n t s ( ' 0

0 0 )

Politeknik

1,585

22,106

ICT

66107205

7531,131

Sastera

& Sains

Sosial

SainsTeknikICTIPT

lain

17

Profile of Graduates by Field of Study

(Diploma)






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5 ISSUES IN THE WORKFORCE

6 ILMIA PORTAL

CONTENT



Structure of workforce

planning

Demand Supply

Strategy and business goals

Forecast talent needs

Critical and pivotal roles

Current and projected headcount

Attrition/retirement rates

New skills/positions

I n t e r n a

l

L M c o n d i t i o n s

Projected employment

Wage trends

Job openings

Current employment

Talent pipelines

Demographic trend

Government policy

E x t e r n a l

L M c o n d i t i o n s



What is provided?• What provided by education

delivery system.

• Schools, training institutions,

universities

Labour market issues• Unemployment

• Wages

• Productivity

What is required?

• Skills level/competency• Various industries require

different types of labour

2020

Perspective of labour demand

and supply



Distinct Wage Premiums for Specific Skills Are Offered

by Employers: ICT proficiency and Presentation skills

are Best Rewarded

-.1 0 .1 .2 .3 -.1 0 .1 .2 .3 -.1 0 .1 .2 .3

writing

solving

present

people

math

language

computer

writing

solving

present

people

math

language

computer

writing

solving

present

people

math

language

computer

writingsolving

present

people

math

language

computer

writingsolving

present

people

math

language

computer

writingsolving

present

people

math

language

computer

Managers Professionals Technician/Associate

Clerical Support Service/Sales Elementary

estimated return std. error of estimate

Source: NER 2011

Returns to Skills by Occupation: NKEA

f k ll f ll



Specific Skills in Deficit Across All Firms are

English Language and ICT,

Particularly for Technicians, Clerical and Service

Workers

0 .05 .1 .15 .2 0 .05 .1 .15 .2 0 .05 .1 .15 .2

TechnicalTeamwork

SolvingMath

LiteracyLanguage

ITCommunic

Analysis

TechnicalTeamwork

SolvingMath

LiteracyLanguage

ITCommunic

Analysis

TechnicalTeamwork

SolvingMath

LiteracyLanguage

ITCommunic

Analysis

TechnicalTeamwork

SolvingMath

LiteracyLanguage

ITCommunic

Analysis

TechnicalTeamwork

SolvingMath

LiteracyLanguage

ITCommunic

Analysis

TechnicalTeamwork

SolvingMath

LiteracyLanguage

ITCommunic

Analysis

Managers Professionals Technician/Associate

Clerical Support Service/Sales Elementary

Source: NER 2011

Skill Deficits by Occupation: NKEA

The adequacy of

vocational training is

a concern raised byemployers who report

that technicians lack

proficiency in many

key “technical” skills

C /S i i i h fi i i Skill



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.



NO. SUPPLY SIDE DEMAND SIDE

1.Perception - ICT industry does not

offer promising career opportunity

Quality and competency of ICT

graduates in meeting the ICT

demands

2.

Widespread misconception among

students that ICT required

extraordinary skills in Maths

Declining interest in among young

graduates in ICT jobs which requires

long working hours

3.Lack of professional recognition inthe ICT industry as compare to

medicine, engineering and

accountancy

Public and private universities are

still lagging behind in creatingglobally recognized ICT products

and services – lack of R&D and

patent

Source: PIKOM ICT Market Outlook, 2014

OTHER ISSUES IN ICT SECTOR



Training in ICT

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0

250

500

750

1000

1250

1500

1750

2000

2250

2005 2006 2007 2008

(in RM 2000)

Training in Computer Firms

(2005 - 2008)

Average real

training

expenditure

per worker

among

training firms

% of firms

with positive

training

expenditure

Source: DOS, Establishment Survey, 2007.



Training in ICT

Source: DOS, Establishment Survey, 2007.

0%

5%

10%

15%

20%

25%30%

35%

40%

45%

0

500

1000

1500

2000

2500

3000

A B C

(in RM 2000)

Training in Computer Firms

by Sub-Industry Group (2007)

Average real

training

expenditureper worker

among

training firms

% of firms

with positive

training

expenditure

A: Hardware

Consultancy /

Maintenance and

Repair of OfficeB: Software

Consultancy and

Supply

C: Data Processing

Services / Data Base

Activities / Other

Activities



Source: 10 th MP , Economic Planning Unit 27

The labour market transformation for high

income economy under 10th MP…….






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6 ILMIA PORTAL

CONTENT



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 MarketInformation

ILMIA PUBLICATION

Promoting The Study Of Labour

Issues

ILMIA PORTAL

www.ilmia.gov.my

http://www.ilmia.gov.my/




THE END&

THANK YOU

Please visit us @ http://www.ilmia.gov.my



3 ilmia slides talent demand and supply in the c m industry

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