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Institute of Labour Market Information and Analysis (ILMIA)
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What is the function of ILMIA?

ILMIA serves as an information centre for labour data and analysis for the Malaysian labour market. At ILMIA, we are responsible for ensuring that data is accurate and up to date as well as facilitating data sharing with users. ILMIA is also the agency responsible for conducting research / studies on the labour market in Malaysia. The results of these studies will be published and used as a guide for policy-making relating to national labour.

What kind of data can be obtained from ILMIA?

Among the data that are available are data on key labour market indicators, supply and demand by economic sectors and NKEAs, average wage according to sectors, and skills by occupation.

Who uses ILMIA Portal?

ILMIA aims to inform users that are government, independent researchers, self-employed and employers, employees, students and public. The ILMIA portal can be used by all categories of user and strives to use language that is simple, non-technical and easily understood by all.

From where does ILMIA source the data that it analyses?

Data sources are obtained principally from several government agencies such as the Department of Statistics, Ministry of Education, Bank Negara Malaysia, the Economic Planning Unit, Ministry of Human Resources and others, including the private sector if made available.

What is the difference between the terms 'Labour Force' and 'Workforce'?

The term 'labour force' refers to all people in Malaysia aged between 15 and 64 years who are at work or unemployed. The 'Workforce' is another category which includes those who do any work for pay, profit or family gain (whether as employer, employee, self-employed or unpaid family worker).

What is the definition of 'Unemployment' and the 'Unemployment Rate'?

  • 'Unemployment' means the population aged between 15 and 64 years in the labour force category who are willing to, and actively looking for, work.
  • 'Unemployment rate' means the number of unemployed compared to the total labour force expressed as a percentage.

What is meant by 'Outside The Labour Force' and how does it differ from unemployment?

'Outside the labour force' refers to those who are not classified as employed or unemployed, such as housewives, students, retirees and those not interested in finding employment. Unemployed, on the other hand, means those who have yet to get a job but are willing to, and actively seeking, work.

Is the unemployment rate in Malaysia better than in other countries?

Overall, the unemployment rate in Malaysia is on average 3.4% (2016). This rate is lower than that in Australia (5.8%) and Brazil (5.6%). Malaysia's unemployment rate is basically stable and some would consider that full employment in the economy has been achieved. Although, in principle, a lower unemployment rate indicates the economy is steady, the unemployment rate will not reduce to zero as there will always be unemployment due to frictions or timing lags, as a result of, for example, employees moving to new jobs or changes in technology.

How can i get hold of books published by ILMIA?

Books and journals published by ILMIA are available online (softcopy) in the publications section. In addition, users can apply in writing or visit ILMIA's office to get printed copies.

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Recently Completed Research Work – 2015-2017

ILMIA provides up to date labour market information pertinent to all stakeholders in the workplace and workforce ecosystem in Malaysia. As Malaysia’s premier labour market information provider, ILMIA conducts research and surveys focusing on human capital requirements and key functions of the labour market relevant to the development of the economy towards achieving high income nation status in Malaysia. Information provided here is relevant to businesses and corporations, trade bodies and educational institutions, Government Ministries and Agencies, research organisations and members of the workforce. 

 

Inventory of Recently Completed Work – 2015-2017

  1. A Study on Trade Union Effectiveness in Malaysia - 2016
  2. A Study on Malaysians Working in Singapore - 2016
  3. A Study on the Demand and Supply of Human Capital Requirements on Technical Vocational Education and Training (TVET) – 2016 by EPU
  4. Managing Skills Challenges in ASEAN-5 – 2016 by Singapore Management University
  5. A Study on Human Capital Requirement: Sarawak Corridor of Renewable Energy (SCORE) – 2015
  6. A Study on Leading and Lagging Indicator for Human Capital Development Game Changers for 11th Malaysia Plan – 2015
  7. Talent Gap Study for the Communications Sector in Malaysia – 2015

A Study on Trade Union Effectiveness in Malaysia

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.  

Forthcoming in publications 

 

A Study on Malaysians Working in Singapore

Singapore is reported to have attracted 57 percent of the entire Malaysian diaspora. This work sought to establish the profile of Malaysians both residing and commuting to work in Singapore. It also hoped to identify the factors that influence their decision to seek work in Singapore. A survey of workers commuting to Singapore and Malaysian employees resident in the city state was undertaken as part of the study, together with targeted interviews with selected individuals and job search agencies. Findings from the study included the socio economic characteristics of the targeted respondents as well as the main occupational categories and economic sectors they were employed in. It shows the typical work hours of the Malaysian workers and the salary ranges for both commuting and resident workers. Among the key factors influencing their decisions for seeking work in Singapore was the country’s strong currency - leading to higher RM salaries, better opportunities and appealing working conditions. The challenges the Malaysian workers faced included the high cost of living and, for commuters in particular, the heavy traffic which put pressure on efficient time management. Greater details and a broader analysis of the main indicators tabulated are available in the report.

Forthcoming in publications

A Study on the Demand and Supply of Human Capital Requirements on Technical Vocational Education and Training (TVET)

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.

Forthcoming in publications

Managing Skills Challenges in ASEAN-5

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.

Forthcoming in publications

A Study on Human Capital Requirement: Sarawak Corridor of Renewable Energy (SCORE)

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. 

Available in publication.

Cities & Corridors

Five regional Cities and Economic Corridors have been identified to drive the economic growth of Malaysia. Each regional economic City and Corridor has its own hub and implementing authority as follows:

  • Georgetown (City) and Northern Corridor Implementation Authority (NCIA) for Northern Corridor Economic Region (NCER)
  • Johor Bahru (City) and Iskandar Regional Development Authority (IRDA) for Iskandar Malaysia (IM)
  • Kuantan (City) and East Coast Economic Region Development Council (ECERDC) for East Coast Economic Region (ECER)
  • Kuching (City) and Regional Corridor Development Authority (RECODA) for Sarawak Corridor of Renewable Energy (SCORE)
  • Kota Kinabalu (City) and Sabah Economic Development and Investment Authority (SEDIA) for Sabah Development Corridor (SDC).

 In addition, under the Economic Transformation Program (ETP), the Greater Kuala Lumpur and Klang Valley region has been identified as one of the National Key Economic Areas (NKEA) to drive economic vitality and enhance liveability throughout the metropolitan area and its surrounds.

The aim is to build on the strengths and economic diversity of these regional areas in order to make them global economic hubs consistent with each region’s comparative advantage and resources or factor endowments. Efforts in clustering businesses will garner economies of scale to sustainably reap the abundant regional resources as well as facilitate the concentration of specialized labour market development within each corridor agglomeration. For more information on the Cities and Corridors, please visit the links to their respective websites.

The work program of ILMIA envisaged the conduct of studies periodically on the human capital requirements within selected sub-sectors for all the cities and corridors described above. To date a first round of corridor studies related to human capital requirements have been completed for IM, NCER, SDC, Greater KL/Klang Valley, ECER and SCORE (all available in publications).

 

A Study on Leading and Lagging Indicator for Human Capital Development Game Changers for 11th Malaysia Plan

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.

Forthcoming in publications

Talent Gap Study for the Communications Sector in Malaysia 

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.

Available in publication.

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