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Institute of Labour Market Information and Analysis (ILMIA)
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Soalan Lazim

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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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

Inventory of Recently Completed Work 2015 - 2018

Environmental Scan for the Professional Services and Maritime Sector


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

National Employment Returns (NER) 2018


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.

Study on the Formation of National Strategic Plan: Employment of Senior Citizens in Malaysia


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 uses primary and secondary research methods to identify challenges of aged and ageing population (supply side) and also employers/NGOs (demand side). Benchmarks of ageing/aged countries were conducted to understand how they have dealt with similar challenges. These learnings are then reviewed for their suitability in Malaysia and form the basis for developing a national blueprint.

A Study on Malaysians Working in Singapore – Phase 2


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.

Environmental Scan: Food and Beverages Sector – Expansion on the Halal Industry


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.

National Labour Cost Survey (2017)


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.

Study on Demand and Supply for Logistic Sub-sector in Malaysia


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

Secondary research – Data / Information was gathered from studies, report and article published / prepared by government, industry, academia or other relevant stakeholders.

National Employment Returns (NER) 2017


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
The study uses the Establishment and Enterprise (EE) frame established by Department of Statistics Malaysia (DOSM) to generate a sample of establishments for the survey.

Environmental Scan: Machinery Equipment and Advanced Engineering Sector Phase 2


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.

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.

A Study on Malaysians Working in Singapore


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.

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.

Managing Skills Challenges in ASEAN-5 by Singapore Management University


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.

Industrial Engagement On Demand For Skilled Workers


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.

National Labour Cost Survey (2016)


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.

Environmental Scan (ES): Human Capital Issues within the Machinery / Equipment and Advanced Engineering Sector (ME & AE)


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.

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.

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.

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.

ILO Study – Proceedings of the International Workshop on “Employment Implications of Environment & Climate Change Related Measures and Policies – Crafting Malaysia’s Roadmap to a Green(er) Economy


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.

Inventory of Recently Completed Work : Before 2015

A Study on Human Capital Requirement: East Coast Economic Region (ECER)


The ECER study focused on the talent gap and demand-supply of human capital in three economic clusters within the region: a) Tourism – targeting Ecotourism, Culture & Heritage attractions and Coastal & Island charms; b) Manufacturing examined sub-sectors covering – Automotive, Biotechnology and the Halal Food Industry; and c) Oil & Gas and Petrochemical activities within ECER. The region was said to be facing an inability to attract talents, an out migration of skilled workforce and inadequate infrastructure. Recommended actions to meet the human capital requirement challenges called for establishing and upgrading training centres and their programs to meet industry demand for talent. There should be an emphasis on up-skilling of professional and semi-skilled workers, including in soft skills, especially language and communications abilities and teamwork/networking. There is also a need to address shortcomings in remunerations schemes and the salary structure within critical occupations categories.

A Study on Labour Market Policies and Issues in Moving Malaysia Towards High Income Economy


In this collection of short analyses of labour market policies, the focus was on four main areas related to industrial relations, labour issues, worker’s safety issues and human capital enrichment. Labour policy issues were examined in these four areas through varied papers and 22 topics identified under this project. The findings confirmed that there is mismatch between the quality of workers and the industry requirements as, in addition to non-homogeneity in the contents of certificate/diploma qualifications, the curriculum and training contents are not oriented towards the employers’ needs, with critical shortcomings in communication, cognitive and non-cognitive skills. Employment programs to reintegrate skilled women back into the workforce, better prepare youth and cater for people with disabilities should be further enhanced. Finally, public employment services should be beefed up and active labour market policies should be vigorously promoted.

A Study on Employment in the Informal Sector of Malaysia


The study on informal employment sought to better understand the factors affecting the motivation, particularly of women and youth, in participating in the informal sector and examined policy measures that could entice these workers back into formal activity by reducing barriers to establishing formal businesses. The findings of the study indicate that informal sector participants struggle in establishing stable businesses under difficult circumstances to earn an honest living. Informal businesses see themselves offering flexibility in employment arrangements sought by informal workers, thereby supporting the lower income community. The main challenge faced in this sector is access to working capital financing, with inadequate or inappropriate support from government and the formal financial sector. Informal sector participants perceive that government policy appears to aim at eliminating their activity rather than a more inclusive strategy of assimilating the functions they serve for the less well-off segment of the community.

A Study on the Supply and Demand of Talent for Professional Occupations in Meeting the Need of a High Income Economy in 2020


The study on professional occupations aimed at assessing the imbalances in the jobs market, with many critical occupations enduring recurrent shortages amidst emerging surpluses of graduates observed for some professional positions. Ten categories of professional occupations were investigated comprising engineers, surveyors, architects, lawyers, accountants, doctors, dentists, veterinary surgeons, ICT experts and physical, engineering science & computing support technicians. 23 economic sectors and sub-sectors were examined. The study looked at the trends in these occupations, wage & salary developments, up-skilling and re-skilling opportunities for professionals and demand-supply outlook for the selected job types. The recommendations were quite similar to those found in the corridor studies, emphasising the importance of industry-academia collaborations to meet the talent requirements and strengthening programs for up-skilling and re-skilling. There were suggestions on purposeful policies to increase female professional participation rates. The need for improved data systems to better track professional occupations and supply-demand developments was highlighted.

A Study to Review the Minimum Wage Impact on the Economy and Worker’s Income Level


The main focus of the study on the minimum wage was to assess the impact on workers and enterprises since its implementation in January 2013 to support the review of the minimum wage rate and its coverage to be undertaken by the Technical Committee of the National Wages Consultative Council. Available but incomplete data showed that a quarter of business respondents have experienced higher costs by an average of around 27%. As a result, some 55% of respondents reported a preference for reducing the employment of local workers as opposed to migrant labour, while only 9% would choose to reduce migrant labour. Business respondents opted mostly to increase product prices and reduce allowances and other cash payments when responding to the increase in wage costs. Some employers remained unclear about the definition on what constituted the basic salary/wage and the minimum wage. Analysis showed that overall average wage rates for employees have increased in 2013 over 2011, with similar increases regardless of gender and youth groups. Among occupations, increases in average wages were also enjoyed by elementary labourers; plant & machine operators; and craft & trade workers. It was also noted that with the minimum wage introduction the number of employees in 2013 relative to 2011 working 1-19 hours a week (i.e. part-time workers) fell relative to those working 35 hours and above.

A Study on Human Capital Requirement for Greater Kuala Lumpur / Klang Valley


The Greater KL / Klang Valley study assessed the talent gap and demand-supply of human capital in five industries within the metropolitan region comprising a) transportation, b) shared services outsourcing, c) oil & gas, d) supply chain & distribution, and e) waste & water management. In each of these five industries the focus was on a particular activity which was identified as the driver of future growth prospects within that sector. Thus the study concentrated in (a) on the MRT/ High Speed Rail (Engineering Services); for (b) on Knowledge Process outsourcing (Financial Services); for (c) on Upstream activities; for (d) on Food and Beverage; and for (e) on Environmental consulting. Overall findings included a likely tight supply of graduates for the supply chain and distributive trade areas and possibly a shortfall in supply of semi-skilled TVET related workers in transportation activities. Demand is also likely to outpace supply in environmental green-technology related jobs, especially for entry-level professionals. Recommendations touched on the need to further enhance industry-academia collaborations to meet the talent requirements and to support research and development initiatives to spur innovation, productivity and grow the targeted industries further. Promotion of acceptance of internship among SMEs should be enhanced and a stronger cultivation of upskilling and life-long learning within the workforce should be boosted.

World Bank Study - Developing Skills for Innovation and High Income Economy in Malaysia


This study examined the requirements in terms of human resources by occupation and skills in each core economic sector in Malaysia. It provides an understanding of how current human resources in Malaysia are contributing to, or constraining, innovation and economic diversification; which characteristics of the labour and product markets affect the incentives of firms to train their workers and of workers to invest in higher level skills; and what are the implications for current education and training systems and for the labour market. The study assessed the current labour market skills gaps and mismatches; addressed policy and institutional settings for skills development and provided a design for a macro-simulation model for policy analysis.

World Bank Study - Immigration in Malaysia: Assessment of its Economic Effects, and a Review of the Policy and System


This study quantified the impact of immigrant labour in Malaysia by identifying human resources needs going forward. It provided an overview of immigrant labour in Malaysia with analysis of data sources from workers and firms. There was also an overview of recent developments and provided key lessons from immigration systems around the world relevant to Malaysia. It concluded with views on the economic benefits of immigration, which it finds are not equal for all segments of the Malaysian working population and across all economic sectors. Skilled and semi-skilled Malaysians benefit greatly from the presence of immigrant workers; however, unskilled Malaysians experience negative impacts on their labour market outcomes. Results also showed that the presence of foreign unskilled workers allows Malaysians to invest in their own education and enable them to work in high-skill occupations identified by the Government as critical to reach its goal of becoming a high income economy by the year 2020.

ILO Study – Proceedings of the International Workshop on “Employment Implications of Environment & Climate Change Related Measures and Policies – Crafting Malaysia’s Roadmap to a Green(er) Econom


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.

UPM study - Human Resources Development (HRD) Modelling System; Manpower and Economic Development Integrated Systems (MEDIS)


This study looked at the implementation of the Manpower and Economic Development Integrated System (MEDIS) as a tool to estimate the manpower requirements and the management of a well-functioning labour market in order to remain competitive in the global market and to meet the demands of the new economy, especially with regards to sub-sector manpower requirements. The study outlined the advances which MEDIS will have in comparison to other economy-wide models currently available to the Malaysian Government and also outlined how the system works and its various applications.

UPM study - Integrating on Manpower Planning in Multisectoral Framework


This study aimed to construct a framework that will integrate various National Key Economic Area (NKEA) sub sectors into the Manpower and Economic Development Integrated System (MEDIS). It examined the integration of studies conducted in the healthcare, business services, wages, labour productivity and capital intensity, tourism and manpower and economic development integrated systems into MEDIS. The study also determined whether there are any potential areas for improvement in manpower planning and future human capital development programmes. By integrating these various sub-sectoral studies, it hoped to pave the path for future identification of shortages and surpluses of manpower, so that quick action can be taken whenever required; such as recruitment and selection programmes based on manpower planning, and to identify available skills and tailored training programmes accordingly to develop those talents.

Manpower Issues in Key Sectors of The Malaysian Economy


Not available at this moment

A Study of Manpower Requirement in the Healthcare Sub-Sectors in Malaysia


This study analysed and proposed policies in employment and training requirements for various sub-sectors under the Healthcare Sector in Malaysia. It focused on the manpower demand and supply requirements at sub-sectoral level and identified skills gaps in meeting the requirement for potential new healthcare jobs for the short, medium and long term. It examined the sub sectors of pharmaceutical, medical devices, seniors living and healthcare tourism, and provided a supply and demand analysis as well as a talent gap analysis.

A Study on Human Capital requirement for the Sabah Development Corridor (SDC)


This study gave an overview of the talent and supply/demand gaps for skilled and semi-skilled labour in four selected sub-sectors in Sabah. It identified talent gaps based on developmental needs and provided benchmarks strategies and best practices from developing and developed nations which can be adopted to ensure sustainable talent within SDC for current and future needs. It outlined human capital issues and initiatives in Sabah, and offered a sector-based human capital supply and demand analysis and key challenges faced by these sub sectors.

Human Capital requirement Study for Northern Corridor Economic Region (NCER)


This study examined the human capital requirement for four selected sub sectors within the NCER, namely, Light Emitting Diode (LED)/Solid State Lighting (SSL), Medical Devices/Technology, Medical Tourism and Cultural Heritage Tourism. It identified human capital supply and demand for each sub sector and outlined good practices and strategies which can be adopted from other developing and developed nations to ensure sustainability of talent for the corridor’s development needs. The study gave a broad understanding of the talent landscape within the four sub sectors and identified talent requirement gaps for each of them. It also formulated actionable plans to ensure sustainable talent in each of these sub sectors.

Human Capital requirement Study for Iskandar Malaysia Economic Region (IM)


This study looked at the talent landscape in four selected sub sectors in Iskandar Malaysia, namely: Tourism, Creative Industry, Healthcare and Oil and Gas. It identified human capital supply and demand in these sub sectors and highlighted good practises and strategies from other developing and developed nations which can be emulated to ensure sustainability of talent for the corridor development through meeting capital needs. The study gave a broad understanding of the talent landscape within the four sub sectors and also identified the demand and supply for talent and talent requirement gaps. It developed actionable plans for each of the selected sub sectors.

Study on Wages Structure in the Major Economic Sectors particularly in NKEA’s Industries and its Impact towards Labour Productivity and Capital Intensity


This study analysed the trends and structural changes in wage levels by occupational group in the major sectors including wage differentials between industries, occupational group, education attainment, gender, etc. It examined the impact of wages structure on labour productivity and capital intensity in the economy. It assessed how workers are remunerated for their output and productivity and its benefit to both employers and workers alike that will contribute to Malaysian economic development. It had a special focus on NKEA sectors. Overall the range of the wage structure has widened. Government policies to promote high income have increased wages at the upper end of the wage structure. At the same time, the foreign labour policy has depressed the lower end of the wage structure. Labour competitiveness has been achieved largely by lowering unit labour cost. The labour market appeared to be distorted by a policy of easy supply of low wage labour. Evidence indicated that the Productivity-Linked Wage System (PLWS) in manufacturing has not been effectively practiced.

HR Manpower Requirement Study – Business Services Sector


This study identified skills requirements in the Business Services sub-sectors; undertook skills gap analysis; proposed strategic issues and policies for human capital development; and put forth an action plan for meeting human resources requirements in the Business Services sector. It assessed issues in several sub-sectors, viz, Aviation Maintenance, Repairs and Overhaul (MRO) and Pure Play Engineering (covering military and commercial services divided into line, component, engine and heavy MRO segments, supplemented by supporting segments); Ship Building/Ship Repair (SBSR cover ships, floating structures, sails, propellers, anchors, maintenance); and Green Technology (GreenTech cover Green Building, Waste Management, and Energy Services Companies (ESCO)). It also analysed critical workforce segments, required skill sets and the manpower supply situation and determined the talent supply pipeline together with best practices in policies to meet skill gaps.

A Study on Human Resources Manpower Requirement for the Tourism Sub-Sector in Malaysia, Vol. 1-6


This study identified skills requirements in the Tourism sub-sectors; undertook skills gap analysis; proposed strategic issues and policies for human capital development; and put forth an action plan for meeting human resources requirements in the Tourism sub-sectors. It assessed issues in 5 sub-sectors, viz, Accommodations (covering 1-5 stars hotels, resorts and guest houses); Tourism Services (covering travel agencies, packaging, booking, ticketing and tour guides); Food and Beverages; Transportation Services (covering taxis, rental cars, bus services); and Retail & Attractions (covering entertainment, sightseeing, shopping, gaming). It included an evaluation of the student demographic profile, learning experience and internship programs to enhance courses and education curriculum to match quality manpower output to tourism sub-sector needs. Some findings were that labour competitiveness has improved as reflected in a decline of unit labour cost from 2002 to 2011. But lower earnings for employees from declining unit labour cost may have reduced attractiveness in hiring and retaining talent. Communications and language knowledge were the main generic skills deficiency areas, followed by customer service skills and hospitality procedures as the main technical deficiencies identified.

ILO Study - Green Jobs Mapping: Malaysia


The study provided an overview of the prevalence of Green Jobs across the economy and sectors in Malaysia and assessed the economy-employment and economy-environment linkages at national level. It mapped existing Green Jobs in the Malaysian labour market through the building and use of a Green Dynamic Social Accounting Matrix (DYSAM). The study provided an estimate of the number of Green Jobs, the level of economic activity that is dependent on the environment in Malaysia and the employment impact of environment related policies. The results of the study showed the statistical links between environmental policies and the economy and the impacts on employment. It also evaluated the socio-economic impacts of environment driven policies with a view to preparing the ground for green skills anticipation in key sectors of the Malaysian economy.

Modernisation of Labour Legislation and Dispute Resolution Process - An International perspective


Not available at this moment

Ongoing Research Work

National Wage Index


A project to develop a national wage index (NWI) has been commissioned by ILMIA to meet the initiative set out in the Eleventh Malaysia Plan (RMK11). The NWI will measure changes of wages and salaries in the Malaysian labour market, with details by major MASCO job categories and by MISC economic sectors, together with other socio-economic information. The NWI will be developed on the basis of a stratified quarterly sample survey of some 3,000 firms, beginning in the quarter ending September 2016. Publication of the findings from the NWI is not expected to be forthcoming until the assessments of the results of the NWI for at least six quarters are completed, following international good practices or at the earliest by March 2018. It is anticipated that some broad initial findings may be shared with interested stakeholders for discussions and to seek feedback in the interim to strengthen the robustness of the NWI being developed.

Labour Cost Survey in Malaysia Phase III

Kajian Penyata Guna Tenaga Kebangsaan (NER) Tahun 2019

Feasibility Study on the Impact on the Output of the TVET Workforce from The Consolidation and Corporatisation of All Training Institute Under MOHR

National Human Resource Blueprint (NHRBP)

Kajian Kemungkinan : The Implementation of Time Bank Volunteering Schemes For Senior Citizens in Malaysia

Kajian Environmental Scan for The Tourism Sector in Malaysia

The Socio-Economic Impact from Employment of Low Skilled Foreign Workers and the International Internship Program in Malaysia

Critical Occupation List 2019/2020


Upcoming Research Work

A Study to Profile Green Jobs in the Identified Economics Sectors in Malaysia

A Study on the Digital Labour Market in the GIG Economy in Malaysia

Kajian Permintaan dan Penawaran Gunatenaga 2021 hingga 2025

Kajian Penyata Guna Tenaga Kebangsaan (NER) Tahun 2020

LMIDW Phase V: MyJob Profile

LMIDW Phase V: Outcome Study on LMIDW 's Initiatives