Research

The environmental scan is conducted to understand the Professional Services Activities and the Maritime Sector in Malaysia. The environmental scan would help determine the profile of the current and future workforce while helping to identify the demand for talent (skills, semi-skilled and low-skilled) within the Professional Services Activities and Maritime Sector. The findings from the survey would also enable the respective institutions of higher learning to review the curriculum and training program relevant for the workforce of the respective subsectors in coordination with accreditation and training providers. A quantitative survey would be conducted with establishments within both these sectors and the findings would be validated with key stakeholders in a focus group discussion. Finally, the findings from the quantitative surveys and the focus group discussions would be used to formulate the relevant strategic recommendations and to roll out the implementable action plan

The 2018 National Employment Returns (NER) survey will involve 4,000 employers encompassing industries according to the Malaysia Standard Industrial Classification (MSIC, 2008) and Malaysian Standard Classification of Occupations (MASCO, 2013). The NER survey would enable ILMIA/MOHR to update the profile of the Malaysian workforce and to provide information on all categories of occupation in Malaysia in 2018. Lastly NER 2018 would also ILMIA to produce labour market indicators on workers’ pay and benefits, hours of work, education level, types of occupations and employment by industry. The survey would cover private sector establishments in Peninsular Malaysia, Sabah and Sarawak at the MSIC 1-digit level and at the MASCO 2-digit level.

Malaysia's senior citizen population (aged 60 years old and above) has increased from 6% of the population in 1990 to 10% in 2017. By 2030, this will grow to 15%, making Malaysia an "aged country". To promote active ageing, the Malaysian government commissioned this study to increase labour force participation and volunteering among senior citizens. Its main objectives are to:

• Define the National Strategic Development Plan: Inclusion and Employment of Malaysia's Ageing Population for 2030
• Identify work challenges, opportunities, supports, and policies to safeguard senior citizens
• Analyze socio-economic benefits of utilizing senior citizens
• Analyze impact of senior citizen employment on younger workforce
• Benchmark relevant policies of other ageing/aged countries
• Define requirements for a centralized database to capture senior citizens' profiles and work opportunities

This study aims to develop a comprehensive profile of Malaysians commuting daily to-and-from Singapore as well as those Malaysians who are residing and working in Singapore. This project will be conducted by using a mixed-method approach whereby both quantitative and qualitative approaches will be employed in order to investigate factors, issues and problems influencing Malaysians to work in Singapore. The researchers will use both manual and online survey to increase the response rate. The survey for the study will be prepared in three (3) languages namely English, Malay and Mandarin to cater the needs of different major ethnic of respondents in the study. Semi-structured interviews will also be carried out mainly with key persons/departments involved in developing and managing Malaysian workforce and relevant key persons with knowledge on Malaysians working in Singapore. The researchers will also conduct focus group discussions with various stakeholders to gather views on factors influencing Malaysians to work in Singapore. The findings of the study should be available by end 2018.

Food and Beverages (F&B) sector had contributed 5.3% on average of GDP from 2010-2015, encompassing services and manufacturing sectors. Its increasing contribution to the national GDP also grew in tandem with the workforce requirement, where 1.3 million or 15% of national employment are working in the sector itself. However, the Malaysia Productivity Blueprint (MPB) has identified some key challenges of F&B sector such as high reliance of low-skill and low-wage workers, and low adoption of technology.

Generally, the ultimate objective of this study is to conduct a comprehensive analysis to synthesis the overall industry and workforce in the F&B sector, with expansion on the halal industry. To a greater extent, the study will also include assessment of macro and micro level perspectives within the supply and demand view of the industry, incorporating education and training ecosystem; skill and talent gaps; critical jobs; and industry growth and challenges. The findings are expected to support national policy, enhance institutional capacity and provide evidence-based employment strategy.

There are four main research methodologies:

1. Industry profiling – understanding economic and workforce landscape of the F&B sector using national data;
2. Online survey – questionnaires are disseminated to companies related to F&B via emails;
3. Focus group discussion (FGD) – a series of stakeholder and industry representatives meetings to gather in-depth information and validation of the study outcomes;
4. Case study – assessing the informal sector workforce profile.

Information on the cost of employment is essential to guide the Government in formulating national policies which relate to labour, wages and salaries. The Labour Cost Survey is a national survey conducted by ILMIA under the Employment Information Act 1953. The survey gathers data on number of employees, working hours, salaries and benefits from companies across Malaysia. These information will be used to help the Government in monitoring key labour cost indicators and in contributing to policy development for productivity improvement.

Research methodology used in this study includes:

1. Primary research - Online Survey will be sent to all establishment from all economic sector and subsector.
2. Secondary research – Data / Information will be gathered from studies, report and article published / prepared by government, industry, academia or other relevant stakeholders.

The logistics sector is a significant component of the economy, given its role as a key enabler for the other economic sectors in terms of facilitating movement and mobility of goods and in increasing international trade connectivity. This study aims to provide insights into the human capital aspects of the Malaysian logistics industry, given that manpower skills and competencies are key components in moving the industry forward. This study also provides an overview of the industry from the global and domestic perspective, which includes insights on the regional logistics performance and comparative analysis of leading logistics nations. This is followed by a manpower assessment of the Malaysian logistic industry to identify the issues and challenges, and provide recommendations to address this issues. Research methodology used in this study includes:

Primary research –

• Online survey - questionnaires were distributed to companies in the logistics subsector via email;

• Questionnaires were distributed to job seekers and fresh graduates to gauge their perception about the logistics industry;

• Focus group discussion (FGD) and dialogue session – a series of stakeholder and industry representatives meetings to gather in-depth information and validation of the study outcomes

The National Employment Returns (NER) 2017 was conducted by ILMIA to profile employers, employees, and their wage and salary levels since 2002. NER 2017, the latest in the series, is the sixth of the NER surveys. Previous surveys were conducted in 2007, 2009, 2011, 2013 and 2016. Results from NER will be used primarily to assist the Ministry of Human Resources in identifying emerging trends in salary/wages and contributes to developing policies relating to human resource development. Specifically, the results will be used for:-

• Reviewing employee compensation and benefits in the context of the Minimum Wage policy implementation

• Establishing the mix of occupation by nationality status employed in various sectors

• Establishing the cost of labour in Malaysia by occupation and sector

• Analysing employee productivity by industry

• Understanding the skills required by employers to ensure the academic curriculum fits the requirements

• Understanding the labour demand in the market

Human capital development for an advanced nation is one of the key initiatives among the six strategic thrusts of RMK11 (2016 – 2020). The emphasis on strengthening the skills and experience of TVET graduates, as an RMK11 game changer, will be particularly relevant in the creation of knowledge-based and high-skilled jobs within the Machinery Equipment and Advanced Engineering (ME&AE) industry, driven mainly by the need to keep pace with competiveness requirements, which will demand increasing reliance on automation and mechanization within many manufacturing and services industry sectors. An Environmental Scan on Human Capital Issues within the ME & AE industry was first undertaken in 2016. This is a continuing study to update labour market and industry information in ME&AE sector for 2018. The findings of this updated study will provide a useful guide in curriculum development or upgrading and to trigger efforts to bridge the identified or emerging skills gaps within the ME&AE industry sector in response to any rapidly emerging investment prospect. The scope of the study includes industry trends and prospects, the profile of the current and future workforce, the critical occupations and gaps in the qualifications and skills of the workforce and industry’s interaction with TVET training providers and education institutions. This environmental scan focuses on 2 major industries which are the Machinery and Equipment (M&E) industry and the Engineering Supporting Industry (ESI). The M&E industry covers 3 sub-sectors, which are (1) specialised M&E for electrical and electronics, (2) specialised M&E for oil & gas, and (3) general M&E for material handling & lifting. The ESI industry covers 4 sub-sectors which are (1) machining, (2) mould, tools and dies, (3) metal casting, and (4) surface engineering & heat treatment. This study will adopt a mixture of quantitative and qualitative approaches throughout different stages of the project implementation, including (1) regular consultation and update with key stakeholders, (2) secondary research, (3) firms’ survey, and (4) in-depth qualitative interviews with industry stakeholders. It serves as a platform to provide views and contribute ideas in developing an effective mechanism for training development in response to the current emerging skill gaps/needs.

The study conducted an investigation of trade union (TU) effectiveness nationwide and also assessed the preparedness of union members for changes required under the Trans Pacific Partnership Agreement (TPPA) when completed. Several factors that contribute to TU effectiveness were analysed among both national and in-house unions. In this context, the role of the Department of Trade Union Affairs (JHEKS) under MOHR was also evaluated. A survey of stakeholders was undertaken to gauge the effectiveness of TU and to obtain their views and understanding on the expected changes to follow from the TPPA when implemented. Among the findings was that TU density in Malaysia is low but unions are viewed positively by members, with in-house unions generally more effective but with room for improvements. JHEKS contribution was viewed as positive and could be strengthened by rebranding and repositioning to give it better visibility and prestige. There is a low understanding and readiness among TU members on the effects of changes called for by TPPA.

This study highlights key findings from the Study on Malaysians working in Singapore. The findings strongly indicate that monetary factor is a strong motivational factor for the respondents to work in Singapore. It also proposes key action plans to address issues related to brain-drain caused by a significant number of Malaysians choosing to work and reside in Singapore.

This study was commissioned by EPU with inputs from ILMIA. Building a highly skilled workforce is imperative for meeting the high income aspirations of Malaysia. Improvements in the quality of education and training as well as their responsiveness to industry demand are essential for shaping the country’s human capital requirements. In this context, transforming TVET is one of the game changers in RMK11 to meet the demand of industry. The TVET challenges embrace knowledge and skill gaps of graduates; fragmentation in TVET delivery systems leading to variation in standards; insufficient collaboration between industry and TVET providers; and the perceived unattractiveness of the TVET pathway and career ladder. The study evaluated the TVET programs and the providers and the expected graduate outputs relative to industry demand. It provided recommendations on rationalizations of programs and TVET institutions, including new programs consistent with industry needs. The urgent need for better collaboration and effective mechanisms for doing so between TVET providers and industry was highlighted. An outcome-based funding model was developed for allocating public financial resources to support training programs and TVET providers to enhance their efficiency and the quality cum employability of graduates.

This study was undertaken by Singapore Management University with inputs from ILMIA. The biggest challenge for realizing the economic visions of ASEAN-5 countries is the availability of sufficient industry-ready skilled workers within the national workforce. The nature and extent of the skilled workforce challenge varies across the ASEAN-5 countries due to differences in their stage of development, economic structure, demographic profile, institutional capacity and strategies being pursued. The study tracks the common challenges faced by ASEAN-5 and the diversity of their responses which are tempered by each country’s differences stated above. In general, the findings highlighted the over-reliance on the public sector in meeting the skills gap and argues for industry to take a more active role in meeting this challenge. Critical weaknesses in STEM education and TVET programs were emphasized.

This report set for the proceedings and presentations outcomes of the Industrial Engagement Workshop held 28-29 September 2015 at Sunway Hotel, Kuala Lumpur. This workshop aim to realised core strategies of increasing the development of human capital for the nation’s progress as stated in the 11th Malaysia Plan. The two-day workshop is one of the initiative to identify the requirements, needs and manpower availability in relation to the skill requirement in industry, including new and future skills, skills gaps in the labour market as well as movement and changes of wages and benefit structures. The involvement of various government agencies, industry players in the private sector, employer associations, employee union and non-government bodies present at the workshop will disseminated the information . Therefore, the expertise and experience assembled in the workshop will result in helpful suggestions and new ideas which may be consider by the government.

The Labour Cost Survey is aimed at compiling indicators and measures of the level, composition and evolution of labour cost to the employer. Evidence-based measurements of the evolution of the components of labour cost over time allows for a better understanding of the structure of the labour market and the design of policies to address workforce and workplace shortcomings. The survey will be conducted on a sample of firms above a certain predetermined employment size drawn from DOSM’s Establishment and Enterprise frame. It will cover the costs of formal sector employment (both Malaysians and non-Malaysians) in the private and public sectors. The data obtained will be analysed at the national level and will include sub-indicators covering states, economic corridors, MSIC 2-digit economic sectors, MASCO 2-digit occupation groups, and firms by company employment size. Labour costs will seek to measure outlays attributed to wages/salaries; overtime payments, commissions and other cash allowances; bonuses and other incentives; other facilities and benefits including transportation, meals, medical, accommodations, utilities, training, uniform, protection/security equipment, sports/recreations, and others (child care, loans, retirement, etc.); statutory payments like EPF, SOCSO, HRDF, foreign worker levies; and the costs from recruitment of staff. Labour costs (or labour cost savings) may well include those stemming from the use of outsourced workers who are not on a firm’s payroll and perhaps also the expenses associated with outsourced tasks or business processes. Initial findings from the survey is expected to be ready by mid-2017.

This project is the first initiative within the work plans of the MITI-led Industry Skills Committee (ISC) established under the Cabinet-level Human Capital Development Council arising from RMK11. The ME&AE sector is one of 10 Industry Working Groups deliberately set up as a mechanism to incorporate the involvement of industry in addressing gaps in human resource issues. In principle, the ES is to be carried out by the identified industry group, but for this pilot report MIDA and ILMIA would contribute towards facilitating this work. It is expected that a working template for the ES would then be documented and be replicated for the series of ES to be undertaken by the remaining 10 sectors within the ISC. The ES main focus is to assess the implications for skills development and workforce planning stemming from evolving business factors that have an impact on firms in the sector. The ES is based on evidence drawn from continuing discussions with and periodical surveys of industry player’s views on 1) the industry outlook and trends; 2) issues on the workforce needs of industry and the qualifications cum skills repercussions; and 3) the responses of TVET and educational institutions to the critical occupation requirements of industry. ES can serve as part of an “Early Warning System” to detect emerging promising business trends and help to build a responsive agile skill worker training system to contribute to realization of the workforce requirements necessary for supporting emerging growth scenarios. This first ES for ME&AE is expected to be available by end-March 2017.

As in the other corridor research, this study examined the human capital requirements associated with development and investment efforts focused on five growth regional nodes within SCORE, but also Kota Samarahan. The five nodes are Tanjung Manis, Mukah, Samalaju, Baram and Tunoh, while for Kota Samarahan the focused on Serian district. The study was to identify human capital supply and demand issues for the specified economic sub-sectors within each regional node and outline good practices and strategies which can be adopted from experience elsewhere to enhance the availability and sustainability of talent for SCORE’s development needs. The largest demand appear to be for semi-skilled workers in the industries covered. Employers preferred fresh graduates with some exposure to the industry thus highlighting the importance of internships and other attachments to the workplace for students at academic, TVET and training institutions. Jobs in heavy industries like aluminium, steel and shipbuilding were perceived to be unattractive. In part this relates to issues of access and cost-of-living related to remoteness of the work location. Critical jobs facing high demand or potential shortages include CNC machinist, heavy vehicle mechanics and tour guides. Greater collaboration between industry and educational and training providers needed to have better integrated talent development of relevance to job requirements and skills. With high demand in semi-skills jobs TVET type educations needs to be promoted to reduce perception of career path unattractiveness.

This study was to provide recommendations on a core set of labour market indicators that will catalyse the transformation and enhancement of human capital measures to be incorporated within the 11th Malaysia Plan to drive the country to high income status. The labour market information should be dynamic by encompassing both leading and lagging indicators of developments in the workforce and workplace. The study was to benchmark the best practices and strategies of countries who are leaders in linking LMIs to effective labour market policies. The existing national framework and institutional arrangements for gathering LMI was evaluated, the management of the analysis, usage and dissemination of LMIs assessed and suggestions provided to make them more effective. The need for inclusiveness through greater involvement of data providers, especially enterprises but also employees/households, was highlighted. There is a need for collection of a wider array of establishment-based labour market data, particularly leading indicators, to be lodged with the labour market data warehouse currently being developed and the continued strengthening of ILMIA to become the Centre of Excellence in the analysis and dissemination of the LMIs. In this context development of a wage index time series and a Critical Occupation List (COL) were suggested. Timeliness in data update is an issue and promotion of awareness and the benefits among the LMI data providers cum consumers could be further enhanced. Building labour market expertize and capacity through a dedicated team to manage LMIs was recommended. The report covered improvements to foreign worker management and issues on needed changes to labour laws.

This study was initiated in 2014 within a partnership arrangement of the Malaysian Communications and Multimedia Commission (MCMC) and ILMIA to analyse the talent requirements of the Communications Sector. The Malaysian Communications landscape with a penetration of more than 140% has expanded vigorously both by subscriber numbers and in sophistication in service offerings. In the future, further expansion will be driven by the usage of mobile data and broadband (both fixed and mobile). The critical question is whether Malaysia has the right talent strategy in place to deal with these dynamic changes and sustain the growth momentum. The study focused principally on the Telecommunications Sub-sector and assessed current and future manpower issues for wireless and fixed line technologies, information and network security and emerging technologies (like Cloud computing & Big Data analytics) impacting the communications industry. A job classification framework was developed comprising 29 key job families, 139 job roles and 316 technical competencies relevant for the selected focus areas. Current and future talent workforce needs were assessed in the context of industry demand and workers coming from educational and training entities. The telecommunications sector workforce must be adaptable and agile to meet the ever changing dynamic industry trends, pointing to the need for constant re-skilling of workers. Job talents were very varied across each of the focus areas; critical job roles and competencies were identified. Talent management will emphasize exposure in an innovative environment, a structured career path and attractive rewards enhanced by training incentives.

This report set forth the proceedings and outcomes of the International Workshop held 5-6 May 2015 as a key event of the Green Jobs Malaysia Project, an initiative under the ILO-Green Jobs Programme for Asia and the Pacific. The Project has mapped out green jobs in key sectors of the Malaysian economy demonstrating the prevalence of green jobs (available in publications), constructed and expanded the Malaysian Green Dynamic Social Accounting Matrix (DySAM) allowing for analysis and policy support modelling crucial for charting the course in the transition to a greener economy, and has taken a capacity-development approach to build expertise among local experts from government, academia and other institutions. The workshop promoted a wider dissemination of the results from green jobs mapping, the analytical research under DySAM including the modelling of scenarios, skills needs assessment as well as work to raise awareness and compliance to competency/occupational standards for green jobs. The report summarizes discussions on the employment implications and policy options for Malaysia’s overall development agenda.